At least 48 million families live in rental properties, which means there is no shortage of tenants for property managers.
People typically buy rental properties to generate extra income, and some do this to create financial freedom. Are you looking for financial freedom and hoping your rental properties help you achieve it?
If so, you might benefit by learning three tips that will help you create this with your rental properties. Keep reading to learn these tips.
1. Keep Units Occupied
Making money as a landlord requires good decisions and hard work. One of the top things you should focus on to achieve financial freedom is keeping your units occupied.
An unoccupied rental property doesn't generate income. Therefore, you lose money every time you don't have a tenant. If you can keep your units full, you'll produce more income, helping you make money faster.
Many leasing management companies focus on tracking their vacancy rates to find ways to increase occupancy. A vacancy rate is a ratio that helps you track your vacancies. The goal is to find ways to decrease this rate.
2. Collect All the Rent
Secondly, you'll achieve financial freedom much faster if you focus on collecting all the rent your tenants owe. A lot of landlords struggle with this task.
You lose revenue when you can't collect all the money your tenants owe. As a result, you won't make money as quickly.
If you struggle with this task, you might want to hire a property management firm that focuses on rental leasing. Property managers use various techniques to improve their rent collection efforts.
For example, they design rent collection systems they implement with all tenants. These systems include charging late fees after the grace period and sending reminder letters.
They also create portals for the tenants to use to pay their rent. The result is they collect more money.
3. Select the Best Tenants
The third way to achieve financial freedom is through proper tenant selection. Selecting the best tenants is one of the top objectives you should have for your business.
After all, your tenants control your financial freedom with a rental property business.
Great tenants pay their rent on time, and landlords rarely have to evict great tenants. Anytime you have to evict a person, it costs money and time. If you use the proper screening techniques, you can avoid this issue.
Your properties are your real estate investment, and your tenants affect your profitability. Therefore, you must design an effective system for choosing the right tenants.
Property Managers Need Management Firms
Owning rental property makes you a landlord, but many property managers don't handle all the work themselves. Instead, they hire a management firm for help.
Hiring a property management firm can also help you create financial freedom with your business, and it might help you achieve it faster.
If you're interested in learning more about this, contact us at Terra Residential Services. We operate out of Houston and can provide more information!
