There are several simple things that you can do to increase the return on your investment property in Wichita. Many investors know that they need to reduce vacancy, collect rent on time, and make good decisions. You always want to do those things. There are also a few things you may not always think of, and we want to share those with you today.
Be Careful What You Pay For
Don’t pay for things that your tenant should be paying for. For example, we had a client who was losing money each month on his property, and he didn’t understand why. We reviewed his lease, and realized that his lease had him paying for services like utilities, snow removal, trash service, and various other things. He wasn’t collecting on that. The simple fix was to update the list so the tenants were responsible for those costs. It turned a negative situation into positive cash flow and saved our client’s investment.
Leverage Your Debt
Apply appropriate leverage or debt on your property. If you have a property in a solid location that’s providing good income, you may want to consider increasing the amount of debt you have on that property. It will free up some cash to increase the size of your property or to acquire another property. Overall, it will increase your return by picking up equity through principal reductions.
Lease Optimization Analysis
The last thing you may think about doing is utilizing a local property management company to perform an asset and lease optimization analysis. There may be several things that you can do to improve your property’s marketing, attract more tenants, and charge more rent.
These are a few new things to think about when you’re looking for ways to increase the return on your investment in Wichita. If you have any questions, or need any help, please contact us at Property Management Partners.