The Inland Empire is bucking the real estate trends in California. While major cities are experiencing a population exodus, the Inland Empire is surging.
Experts forecast the Inland Empire's population to grow by more than 20% over the next quarter-century. Right now, the population sits at 4.7 million. By 2048, it will rise to more than 5.5 million residents.
With so many people flooding the Inland Empire, there will be considerable rental demand. Read on for tips on how to protect your investment property in the Inland Empire. Explore how to maximize return on investment (ROI) for your rental property.
Rent Analysis
To maximize revenue, you need to find the appropriate balance between rent pricing and attracting new tenants. If you set rental pricing too high, you may push away potential tenants and create vacancies. At the same time, low rental pricing will hinder your profitability.
Property management services perform rent analysis to accurately price your home. They look at factors like property value, rental demand, home characteristics, and more. The result is a price recommendation that will improve profitability.
Tenant Screening
To protect your assets and revenue stream, it is equally important to bring in high-quality tenants. A property manager's tenant screening process is the best way to do this.
There are several elements to a thorough screening. For starters, the property manager is going to run a criminal background check. This is to protect you from revenue loss, property damage, or theft.
They will also perform a credit check. The intent here is to make sure the tenant has a long history of making on-time payments.
Other elements of tenant screening include employment verification. The property manager will make sure that the applicant is gainfully employed. If the tenant does not have a job, they will have difficulty making payments.
Lastly, property managers also check an applicant's rental history. They will contact a tenant's prior landlord to see if there were major issues or eviction notices.
Property Amenities
Investing in amenities is a great way to increase your property value and maximize profitability. Many short and long-term tenants select a property for its amenities.
On the long-term side, many prospective tenants are looking for swimming pools and fitness centers. Others have simpler requests in mind. They simply want a washer and dryer unit on-site.
Once you secure the amenities you want, it is time to market them. You need to get the word out on your featured amenities to attract new tenants.
Your Guide to Maximizing Returns on Your Investment Property
You now understand how to maximize ROI on a rental property. The key lies in finding high-quality tenants and investing in property amenities. Also, it is imperative to set rental pricing in a manner that increases revenue but does not turn away potential tenants.
PMI Inland Empire is part of a franchise that has been helping landlords maximize returns for more than 20 years. If you need assistance with increasing ROI on your investment property, contact us at PMI Inland Empire today to speak with an expert.
