Real Estate Blog August 7, 2023

How to Increase ROI on Your Rental Property

Asheville has become a popular destination for retirees, young professionals, and tourists alike, thanks to its mild climate, rich cultural heritage, and stunning natural beauty. This has resulted in a robust and diverse local economy, with growth in industries ranging from tourism and hospitality to technology and entrepreneurship.

In recent years, the city has also seen an increase in the number of new restaurants, breweries, and other food and beverage establishments, as well as new music venues, art galleries, and other cultural attractions.

To accommodate this growth, Asheville has undergone significant infrastructure development, with new roads, bridges, and public transportation options constructed to ease traffic congestion and improve accessibility. There has also been a growing effort to preserve the city’s historic architecture and natural landscapes, as well as to address issues such as affordability and sustainability.

Despite these challenges, Asheville’s growth has brought new opportunities for residents and visitors alike. It has helped to establish the city as a vibrant and dynamic center of culture and commerce.

Owning rental property in Asheville is a good investment opportunity, as the city’s growth and popularity have led to a high demand for housing. With a thriving local economy and a growing population, there is a steady stream of renters looking for affordable, high-quality housing.

The Benefits of Owning Rental Property in Asheville, NC

There are several factors that make now a perfect time to invest in rental property in Asheville. Although home prices are certainly increasing, they are still more affordable than in many places in the country. There is a growing demand for housing, which is driving up rental prices and making it easier for landlords to achieve strong returns on their investments.

Additionally, the city’s growing popularity as a tourist destination is creating new opportunities for short-term rental investments, as well as for traditional long-term rental properties.

Overall, owning rental property in Asheville is a smart investment that offers several benefits, including steady rental income, the potential for appreciation, and the opportunity to be a part of a thriving and growing community.

Of course, positive ROI is never guaranteed, regardless of how in-demand housing is. It is important to ensure you’re taking steps to maximize your investment.

Tips for Improving ROI on a Rental Property in Asheville

There are several ways to increase the return on investment (ROI) of a rental property:

  1. Raise Rent: Regularly increasing rent in line with market trends can help to boost the ROI of a rental property over time.
  2. Improve Property Condition: Making improvements to a rental property, such as updating appliances, fixtures, and finishes, can increase its value and make it more attractive to tenants, helping to boost rental income and ROI.
  3. Reduce Operating Costs: Minimizing expenses, such as property management fees, maintenance costs, and utility bills, can help to increase the net income of a rental property and boost ROI.
  4. Increase Occupancy: Keeping a rental property fully occupied with reliable tenants can maximize rental income and ROI.
  5. Diversify: Investing in multiple rental properties can help to spread risk and provide a more stable, diversified income stream, which can boost overall ROI.
  6. Utilize Tax Benefits: Taking advantage of tax benefits, such as depreciation and deductions for mortgage interest, property taxes, and maintenance expenses, can help to lower taxable income and increase ROI.
  7. Implement Smart Technology: Installing smart home technology, such as keyless entry systems, energy-efficient appliances, and remote property management tools, can help to increase efficiency, reduce operating costs, and boost ROI.

By following these strategies, landlords can maximize their rental property ROI and achieve long-term financial success. However, one thing you probably don’t have in abundance is time. If you have several properties, or property rental is not your full-time job, it is difficult to find enough hours in a day to implement the strategies you know would help your ROI.

Often, hiring a property management company can help you net more income by improving your ROI and making your expenses a wash.

How Property Management Companies Can Help Improve ROI

  • Finding and Vetting Tenants: Good property management companies help you reduce vacancies by finding and vetting great tenants.
  • Rent Collection and Accounting: A property management company can handle rent collection and other financial tasks, such as accounting, tax preparation, and maintenance expenses, freeing up the landlord’s time and reducing their workload.
  • Maintenance and Repairs: Property management companies have the staff and resources to handle routine maintenance and repairs, reducing the cost and time involved in property upkeep and improving the overall condition of the rental property.
  • Legal Compliance: Property management companies stay up-to-date on local, state, and federal rental laws and regulations, helping landlords to avoid potential legal and financial liabilities.
  • Occupancy Management: Property management companies can help to maximize occupancy by ensuring that rental properties are kept in good condition, marketed effectively, and priced competitively, increasing the ROI of the rental property.

Overall, by using a property management company, landlords can focus on growing their portfolios and maximizing their investments. In contrast, the property management company handles the day-to-day tasks of managing and maintaining your rental properties.

Residential Management Services offers top-of-the-line property management services in Asheville and western North Carolina. You will receive monthly reports on all aspects of your investment to show how your rental is performing. Our trusted vendor list of professionals, including maintenance, HVAC, plumbers, roofing, lawn care, electricians, and cleaners, ensure the home is maintained and beautiful for you and your guests. Visit our last blog about how to choose a realtor in Asheville, NC.

If you want to know more about how a trusted property manager can help improve your rental property’s ROIcontact our team today!