As a property owner, you have only so much control over your rental property’s long-term profitability. The property’s market appreciation may be almost entirely out of your control, but there are steps you can take to increase your cash flow. By focusing on improving your net operating income, you increase the investment value of your property and ensure you see financial growth. Here are five ways you can increase your rental property’s NOI.
One way to improve your NOI is to increase the rent to match market rates. This is often easier said than done, but with the right guidance from property managers in Baltimore or Philadelphia, you can easily determine if your rental fees align with the market rates. Real estate professionals will help you compare your property to other rental properties in your area, conduct a market survey, and analyze your vacancy. Based on this information, you will know if your rents are too low.
You can charge a rental premium on your property if it is well-maintained or provides upgraded features. Renters are drawn to places with the latest appliances and fixtures and are often willing to pay more for these amenities.
Consider remodeling the interior of your rental property to increase your NOI. Add new plumbing fixtures, lighting, or cabinet doors to make the rental feel more modern. Alternatively, you can boost the property’s curb appeal by repainting the exterior, sprucing up the landscaping, and adding more lighting. You will be amazed by how much of an impact these minor improvements can have on your rental income.
If you want to improve your rental’s NOI, you will need to avoid situations where rent goes uncollected. By screening potential tenants, you reduce the likelihood of experiencing evictions, unexpected move-outs, and property damage. It’s best to entrust the tenant screening process to a property management company to leave no stone unturned.
Water and energy are some of the largest expenses rental property owners face. You can significantly impact your rental’s NOI by reducing water and energy consumption. Consider installing low-flow toilets, showerheads, and aerators as well as sensors on the irrigation system to save water. To save on electricity, install LED lighting fixtures and bulbs. You may also want to install light sensors and motion sensors to cut back on wasted energy.
Increasing your property’s NOI can be challenging since it largely depends on the rental market and can be affected by things like tenant move-outs and property damage. While you may not be able to generate the income you were hoping for every year, you can keep the above ideas in mind as you strategize ways to improve your revenue streams and decrease operating expenses.
For more ways to improve your NOI, get in touch with ANCHOR Realty NE. Our experts will provide the
real estate investment advice you need to maximize the value of your properties. Contact us today for all the best ways to boost your rental’s NOI. You can also check out our Philadelphia & Baltimore
properties for rent to see what we can do for you.
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