Between you and your real estate profit lies a hurdle: rental management. If you get this wrong, the costs can soon eat into those promising profits, not to mention the time and hassle it can cause when dealing with leasing issues.
That's why you need to have a strategy for leasing management. Read on to discover our four tried-and-tested leasing management techniques for the most efficient approach to rental investments.
1. Leasing Process Optimisation: Screening
A comprehensive screening process is the best way of protecting your property from bad and unreliable tenants. Comprehensive means running multiple background checks, including:
- A criminal background check
- Checking the tenant's credit score
- Following up on references from previous landlords (or character references for first-time tenants)
- Financial check, including proof of income
Robust screening means you are less likely to face a costly and stressful eviction process due to a bad tenant. And you won't need to worry about issues like late rental payments or property damage.
2. Tenant Retention Strategies: Flexible Leases
A flexible lease is attractive to tenants and could help you with property marketing. That's important in markets like Fort Lauderdale, where you face lots of competition from other rental properties.
A month-by-month lease could be an attractive option for some tenants, like those on short-term temporary work contracts. This could be a good fallback proposal if you are leasing during a quiet time of year. Since Fort Lauderdale is a popular tourist attraction, you could also consider offering a short-term lease to attract those wanting to head to Florida for an extended vacation.
3. Research the Local Market
From a potential tenant's perspective, the most compelling aspect of any lease is going to be the price. It's crucial you have an accurate figure. If this figure is too high, you could miss out on a potential tenant. Too low, and you could miss out on possible income. So, how do you achieve that optimum price?
The solution is simple: research.
Examine the local market for trends, including the figure set by your closest competing properties. Check out price movements from the last twelve months, too, as this can often tell you whether the prices are moving up, down, or staying steady.
4. Improve Your Communication Approach
Effective communication with current and prospective tenants is crucial. It's going to help resolve issues faster and keep tenants happy.
If a tenant reaches out to you with a maintenance issue, for example, be proactive and keep them updated with the progress of any repair.
Likewise, communicate your lease agreement guidelines to tenants to ensure everyone understands their rights and responsibilities, such as how a tenant should notify you of a maintenance problem or a property emergency. When tenants understand what's expected of them, you're less likely to see conflict or complaints.
Leasing Management Techniques to Try
It's time to revamp your leasing management. Creating a more comprehensive and efficient process will save you time and money in the long-run, helping to maximize those profits.
Our team at Metro Residential LLC are also ready to help you make the most of your rental investments.
With decades of experience and a solid reputation in Ford Lauderdale, we are the team experienced landlords turn to when they want to supercharge their real estate business. Find out more about our services here.
