Investing in the Houston property rental market has long been considered a great choice. It outperformed the stock market many times in recent years, and many investors appreciate owning a physical asset.
Thinking about the bottom line, how can you make your Houston rental property more profitable? Property management may seem like an extra expense, but it can actually make your rental more lucrative.
Read on for 5 ways to make your Houston rental property more profitable.
1. Choose the Property Wisely
Many investors get very focused on the rental return a property can generate. While rental rates are very important, they're not the only factor to consider when choosing a Houston rental property.
Other factors to think about include property taxes and the state of the local market. Consider the area and its amenities, and the potential for the property to appreciate.
2. Pick Your Tenants Carefully
Tenant screening is hugely important. If you get the wrong tenant or are constantly seeking new tenants, you'll impact the profitability of your investment.
Bad tenants don't pay their rent on time, if they pay it at all. They're hard to communicate with. They don't keep to the terms of the lease and legal proceedings against them can be extremely costly.
If you're not experienced in tenant screening it can be hard to make the right choice. A Houston property management service has the experience of local tenants and market conditions. They know the types of tenants that work best for properties in your area. That expertise can save you a lot of hassle down the line.
3. Streamline Property Maintenance
All properties require ongoing maintenance, plus emergencies happen from time to time. If you manage the property yourself, you will have to plan for and handle these yourself.
Most people who invest in property have other jobs, responsibilities, or a large portfolio to manage. This can take a lot of time, and you have to be on call 24/7. That includes weekends and during vacation time.
Consider consolidating all property maintenance and management under a property management company. Everything to do with caring for the property becomes their responsibility. You just have to sign off on important decisions.
4. Shop Around for Deals on Insurance
For costs you can control, like insurance, make sure you don't just accept the renewal figure from your current insurer. Use an insurance agent or compare deals online. You may be able to find the same level of coverage for a much lower price - all money in the bank for you.
5. Work With a Property Management Company
You may wonder how using a property management company can save you money. The fact is that they are experienced professionals in the field. They know the local area and can give up to date advice.
They are also experienced in tenant screening, rent collection, and property maintenance. They may have their own handymen or relationships with contractors who can attend to issues promptly and with no hassle for you.
Maximize Your Houston Rental Property Returns
Are you looking to maximize returns on your Houston rental property, while also minimizing stress? Property management is the answer for you. It will cut costs and anxiety for you in the long term.
Terra Residential Services are here to do the hard work for you. We have over thirty years' experience in property management in Houston.
Contact us today to discuss how we can help you maximize returns from your Houston property.