Are You Leaving Money on The Table as A Landlord?
You own Portland Oregon Rental Properties to build positive cash flow and wealth but even though your properties may be doing well right now you should still be asking yourself if you’re leaving money on the table every month.
Most owners don’t realize that there are a variety of ways that they are leaving money on the table when it comes to their investment properties. Thankfully, in this article, we will provide you with several real-life examples of how you could be leaving money on the table and what you can do to fix this problem.
#1 – You’re Not Tracking Expenses
The first way that you may be leaving money on the table is you’re not tracking your expenses.
Tracking expenses is one of the most important things that every landlord should be doing because it’s the only way for you to know that the strategies that you’re using are really working or not.
You should also be tracking your expenses because the Internal Revenue Service (IRS) gives you the ability to deduct things like repairs or property improvements on your investment property so it’s vital that you start tracking what you’re spending each year because those expenses can add up to valuable take deductions!
If you’re not a fan of expense tracking, the good news is that in this day and age it’s getting even easier for landlords or self-employed business owners to track their expenses with a variety of apps that do things like track mileage automatically.
Depending on the phone that you use, just log in to your app store and start searching for expense tracking apps because there most likely is an app for what you need.
Not a fan of apps? No problem! The best way to track expenses is to keep a folder or small notebook in your vehicle or office so that you can easily track expenses like mileage when needed.
#2 – You’re Not Taking Steps to Avoid Tenant Turnover
There’s no doubt that tenant turnover can be like a plague for owners because of the obvious reason that when your Portland Rental Property is not occupied, you will have to cover the mortgage and expenses until you find a new tenant.
What’s the solution to the problem? It’s to take steps to avoid tenant turnover by doing the following:
- Fix anything that needs to be repaired or replaced immediately when tenants bring issues to your attention.
- Take the time to get vacant units ready for rent. This should include painting and having a vacant unit professionally cleaned before you show a vacant unit to prospective tenants.
- Don’t just rent to anyone who “has a pulse”, you should be diligent about doing background checks on prospective tenants because even though someone looks good on paper, they may not be the best tenant for your property.
#3 – Not Offering Your Tenants Anything New
It doesn’t matter if you own a single-family home, or multifamily property in the Portland area, you should always want to offer your tenants more options because this will also lead to more cash flow for you.
Which else could you be offering to your tenants?
- Fiber Optic Internet – Just about everyone these days wants it and would be willing to pay a premium price if they were offered it.
- Laundry – If your tenants don’t own a washer and dryer, they have to be doing laundry somewhere so why not at your rental property?
- Storage – If your investment property has space for you to install a storage shed or space on the property, you shouldn’t hesitate to install a storage page because your tenants could be paying you an extra $40-$50 per month to store their bikes or belongings on the property instead of at a nearby storage facility.
- Fitness center or lounge – Let’s say that you own a multifamily property that has space for a lounge or fitness center. You should consider adding on to your property because adding these new facilities will help your tenants to see your property as a home that they do not want to leave.
- Improving the landscaping – Does the landscaping at your rental property leave a little to be desired? The reality is that if you have a “blah” feeling about the landscaping at your rental, there will be prospective tenants who feel the same way. The solution to the problem is to add new landscaping that will improve the look of your property and make your tenants want to stay when it comes time to renew their leases.
#4 – Not Collecting Fees
With the start of rent control in Oregon, landlords here cannot raise the rent more than 7 percent per year, plus the annual change in the consumer price index. Even though rent control is less than desirable for landlords, the reality is that a landlord can still watch their bottom line by enforcing fees.
Many owners hate enforcing fees because this effectively makes them the “bad guy” but the reality is that most tenants know to expect to have to pay fees for paying their rent late or not abiding by the rules listed in their leases.
When enforcing fees, it’s always best to keep it professional and show kindness to your tenant while also reminding them why they are being made to pay the fee.
#5 – Not Offering Additional “Value Add” Services
Last of all, one of the top ways that you may be leaving money on the table as a landlord is by not offering additional “value add” services to your tenants.
By value-add Portland services, we mean things like cleaning / janitorial, landscaping and or dry-cleaning services. If you think of the services that your tenants may need or want to use, it’s possible to create additional income streams just by offering those services to your tenants.
#6 – Self Managing Your Portland Oregon Rental Property
Self-managing your Portland Oregon rental property is by far one of the top ways that you’re leaving money on the table as an owner because there is always a wide variety of ways that owners are literally leaving money on the table each month without knowing it.
Some of the wide variety of services that we can offer you include:
- Property Marketing
- Rent Collection
- Customer Service
Contact Rent Portland Homes Professionals
To learn more about the property management services we can offer you contact us today by calling (503) 447-7735 or click here to connect with us online.