Owning rental property in Phoenix can be a high-ROI investment. But are you sure you’re maximizing your rental income and overall profits?
A good ROI on a rental property is typically above 10%. But, depending on various factors, the actual maximized ROI for your specific Phoenix rental property could be higher or lower. What can you do to ensure you’re earning maximized rental income?
Below are tried-and-true strategies for increasing rental income on Phoenix rental properties, and anywhere else you happen to own them.
Do You Have an Effective Tenant Screening Process?
As a Phoenix investment property owner, you should not take screening tenants lightly. Due diligence is essential for successful real estate investing and your long-term peace of mind.
- Employment verification and tenant references are a great way to start, as they give you clarity on a tenant’s qualifications.
- Checking credit scores is another critical step, as it can help determine whether a tenant is likely to pay rent on time.
- Background checks can also provide valuable information, such as whether a prospective tenant has a criminal record or previous evictions.
One of the most significant legal hurdles inexperienced property owners face is the Fair Housing Act, so make sure you are familiar with the law and avoid discriminating against any potential tenants. Tenant screening services are available to help make the process easier, so consider using one if unsure how to proceed.
Finding and placing high-quality tenants is essential for real estate investors looking to maximize the ROI from their Phoenix rental property. If you can find long-term tenants, even better.
Is Your Phoenix Investment Property Priced Right?
When pricing your rental property, there are a few things to consider. The condition of your property and its location is paramount, but there’s more to setting a price that maximizes your rental income.
You should also consider the current Phoenix real estate market and compare your rental property to similar homes in the area.
Try to find a balance between profitability and attractiveness; setting your rental price too high may result in attracting fewer tenants while setting it too low could mean you’re not maximizing your Phoenix investment property’s potential.
A Phoenix rental market analysis from a professional property management team can be extremely beneficial in helping you set the rental rate that makes the most of your rental property investment.
A rental market comparison should include the following:
- Rental prices
- Amenities offered
- Property features and size
- Available services (such as internet/cable)
- Landlord reputation
Speak to local Phoenix investment property experts who better understand the current Arizona real estate market and can provide valuable insight into what prices are fair compared to other rental properties in the area.
Do You Have Efficient Rental Property Maintenance?
Buying investment property is only the beginning of a successful real estate investment. It also requires ongoing maintenance and repairs, so it’s essential to have a plan to handle these tasks and keep maintenance costs as low as possible.
It’s typical to budget 1% of the property’s value for anticipated property maintenance. Stay on top of roof repairs, plumbing issues, and perform routine inspections to identify potential maintenance issues that could have a long-term effect on your cash flow.
Proper maintenance and upkeep of your Phoenix investment property can help you maximize ROI in two ways:
- By avoiding potential problems that could cost you money
- By attracting higher-quality tenants willing to pay more for a well-maintained home
By planning and budgeting for these tasks, Phoenix rental property owners can avoid significant problems down the road while maintaining their property value.
It’s also essential to have a good relationship with a reliable contractor who can help with any extensive repairs that may come up. While you may like doing things yourself, it’s important to know when it’s better (and more cost-effective) to hire outside help.
Are You Organized as an Investment Property Owner?
As an investment property owner, there are a lot of administrative tasks to keep track of — from marketing your property and having solid lease agreements to collecting rent and scheduling repair orders. Ensure you have a reliable system for staying organized so nothing falls through the cracks.
One way to stay organized is to set up a system for dealing with tasks as they come up. You might want to create a calendar where you list important dates and deadlines or use a management app to track jobs and payments.
Another crucial part of staying organized is good record-keeping habits. Make sure you keep track of all payments, transactions, tenant communication, and other information. This will help you resolve any issues that may come up later.
How to Build Good Tenant-Landlord Relationships
A good relationship with your tenants is essential to being a successful investment property owner in Phoenix. Make sure you communicate openly and honestly with them, so they feel comfortable coming to you with any questions or concerns.
Make sure you are transparent about your policies and expectations, such as late fees, rules for the property, or any other important information. Encourage tenants to communicate with you directly if they have problems so that you can work together to solve them.
Establishing great relationships with your tenants is the key to having long-term tenants.
Staying Legally Compliant as a Landlord in Phoenix
As a rental property owner, it’s essential to know the rental laws in your area. Make sure you know the local regulations and tenants’ rights to avoid any legal issues down the road. Legal matters like tenant disputes, evictions, and security deposits can cause significant headaches for property owners if not appropriately handled.
Landlord-tenant laws and housing rules and regulations in the Phoenix metro area are constantly changing. So it’s important to be proactive about staying up-to-date to avoid costly legal troubles.
Keep Up With Trends and Phoenix Real Estate Market Conditions
It’s also important to stay updated on industry trends and the current state of the Phoenix rental market.
Joining networking groups or attending seminars are just two of the ways you can stay educated in this field. You can gain valuable insight into how best to manage your rental property in Phoenix and how to adjust to changes in the real estate market.
Maximize Your ROI with High-Performance Property Management in Phoenix, AZ
The easiest way to maximize the income from your Phoenix investment property is to partner with an experienced and reliable property manager, like Brewer & Stratton Property Management.
Our proven property managers understand every detail of property management and have the expertise and resources to get you every dollar out of your real estate investment.
We can take care of everything related to managing your Phoenix rental property, including:
- Property marketing
- Tenant screening
- On-time rent collection
- Maintenance coordination
- Legal compliance
- Routine inspections
- Preserving property value
- Rental property accounting
- Extensive record keeping
Contact Brewer & Stratton Property Management for a free rental analysis of your Phoenix investment property to ensure you maximize your profit, understand your rental property’s potential, and comply with local laws.
We’re here to help you create a successful, profitable rental property investment.