About 5.5% of Denver's metro apartments were vacant in June 2022, accounting for around 21,134 units not making any money for their owners.
An underused rental is just one way to devalue your investment. Luckily, there are many ways to increase your rental value. For example, in this case, all you need to do is fill it with tenants.
Read on for more ways to capitalize on your Denver property.
Stay With the Current Rent Average
One of the most important real estate investing strategies is to keep up with the market. Research how much other rental properties are charging for rent so that you can match them.
By leasing your rental for the same amount as your competitors, you know that you aren't devaluing your home and losing potential profits.
Reevaluate your monthly rent at least once a year or every time a renter leaves. Remember that Colorado doesn't have rent control and you are only required to notify your tenant 60 days before you raise the rent.
Make Remodeling Upgrades and Amenities
Put your rent collection to use by investing back into your property. You can use your profits to make upgrades to your kitchen or bathroom and even do minor updates like replacing fixtures.
By remodeling your rental unit you are legitimizing a raise in your rental price as you move your property into a new category of luxury.
Advertise these upgrades to your future and current tenants to show them that your rental unit is worth more than other properties in the area.
In addition to remodeling, other great real estate tips for increasing your property's value are to charge for amenities and add additional ones. For example, if your complex has a free gym for residents then consider the outside cost of a gym membership and add that to your monthly rent. Or, allow pets in your rental and include a small pet fee.
Screen for the Right Tenants
Have you ever completed rental inspections after your tenant leaves only to realize that some of your property is damaged? That is how having the wrong tenants can devalue your rental.
Take the time to screen for responsible tenants to avoid costly repairs and replacements.
The right tenants may also stay longer, reducing your overhead cost of advertising to fill vacancies more often.
Check Your Bookkeeping
Just like any other business, property accounting is a necessary part of management. Check your bookkeeping to ensure you aren't missing opportunities for income or have unnecessary expenses.
If you haven't already, create a separate bank account for your investments, whether you are registered as an LLC or manage your property as a sole proprietor.
Keep strict records and perform monthly audits to track expenses and income. You may also hire a property manager or accountant to handle this part of the job for you.
Always Think About Your Rental Value
To be a successful real estate investor, you always need to think about your rental value. Never buy a property then set it and forget it. If you want to make the most profit while keeping your tenants happy, then you need to invest in the quality of your property and stay informed about the market.
Luckily, there are many resources available to help you. Contact Investor's Realty today to use our many property management services.