Do you plan to invest in a rental property for passive income this fall in Louisville, Kentucky? Now couldn't be a better time.
Research shows that Louisville's rental vacancy rate was only 7.94% in 2019 due to the rising demand for rental homes. Nearly 33% of people in Louisville rent the city's homes.
The push for rentals stems from high home sales prices, which have priced some people out of Louisville's buying market. Others choose to sell their homes, rent other homes, and wait for home prices to drop before they buy again.
Property managers can help real estate investors earn more money from rental properties. Let's explore what property managers do to get the most money for their clients.
A property manager can help you earn more money from your rental property through careful tenant screenings. They'll carefully analyze your tenant applications to find the most reliable prospective renters.
The best tenant candidates are those who've made on-time rent payments in the past and are committed to caring for your property. On-time payments will strengthen your revenue so you can invest in other income-generating properties. Tenants who care for your home will minimize your home maintenance and repair costs, boosting your bottom line.
What happens if you choose the wrong tenant? You may have to evict them. Eviction costs can be $4,000 to $7,000, killing your profitability.
Marketing Your Rental
A Louisville property manager can help you get the most money by effectively marketing your rental property. They can help you write a compelling rental ad with crisp photos for sites like Facebook and Zillow. They may even host an open house to attract quality tenants.
Top-tier rental marketing may help you fill your home sooner so it sits vacant for only a short time. A vacancy will decrease your income and the return on your investment. This might prevent you from making your mortgage payments on the property, which may lead to foreclosure.
Yet another way a property management company can help you get the most money is by regularly inspecting your property. This will help you find problems before they become bigger issues, lowering your number of urgent repair bills.
The best property manager will also build relationships with and use cost-effective contractors. The right vendor partnerships will help you keep your repair and maintenance costs low.
Reduce Tenant Turnover
Are you wondering how to choose a property manager? Pick one who is committed to keeping your tenants happy. This will help decrease tenant turnover.
A quality property manager will be available and responsive, addressing your tenants' issues as they arise. Your tenants will be more likely to stay in your home versus looking for a different rental home. They may also be more open to accepting reasonable rent hikes, boosting your profit margins.
Work With the Best Property Managers
Louisville property managers can help you make the most money by carefully screening tenants and marketing your rental. They'll also work to minimize your maintenance costs and tenant turnover.
At PMI Louisville, we offer top-tier property management services. These include rent collection, accounting, and maintenance. Contact us today to learn more!