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Staying Ahead of the Curve: Innovative Strategies for Increasing ROI in a Changing Rental Market - Article Banner

Real estate investors who focus on rental properties are always looking for ways to increase their return on investment (ROI). This is why we invest: to make money. 

We are currently in an economy that’s more expensive than ever, and that means we have to be creative when it comes to increasing what we earn in both the long term and the short term. The rental market is constantly changing, and what worked in the past may not work now. 

To stay ahead of the curve, investors need to be innovative and adaptable in their strategies. Working with a local property management company that’s effectively gathering insights, analytics, and data can help you know how to be as competitive as possible. 

Our experience in the local market allows us to provide our investors and owners with some important recommendations on how to stay ahead of the curve. We’re exploring some of those innovative strategies and suggestions today.  

Embrace Green Strategies and Make Energy Efficiency a Priority

The climate is on everyone’s mind, and whatever opinions you happen to hold on the matter of environmental sustainability, you need to know that “going green” is becoming more important for residents. If you are willing to embrace green strategies and make your rental property more environmentally friendly, you’ll find that you have an easier time attracting and retaining high-quality residents who are committed to a lifestyle with less waste and consumption. 

Consider simple but effective improvements such as: 

  • Installing solar panels.
  • Using sustainable building materials, such as bamboo. 
  • Add eco-friendly amenities such as bike storage or space for an electric car charger.
  • Invest in high performance, double-pane windows.
  • Choose eco-paints on walls and the exterior of your property.

These upgrades can help you attract eco-conscious residents who are willing to pay a premium for sustainable living. Additionally, green strategies can help reduce your property’s environmental footprint and make it more attractive to potential renters who care about this. You’ll earn higher rental values and improve the overall value of your investment property. 

Energy-efficiency is equally as important and can be an excellent upgrade when you’re trying to earn more on your property. Those energy costs are some of the biggest expenses for rental properties. If your residents are paying for their own utilities, they may be more likely to look for energy-efficient homes. 

You can help them out and ensure your property stands out by making energy efficiency a priority in your rental properties. Consider installing energy-efficient appliances with an Energy Star rating, LED lighting, and programmable thermostats. You can also improve insulation and HVAC systems. Insulate your house really well and opt for air sealing. You can use energy-efficient air conditioners and hydronic radiant heating. 

These upgrades may require some upfront costs, but the long-term savings on energy bills will make it a worthwhile investment. You pay utilities too, during turnover periods or when your property is vacant, so the savings extend to your own budget in addition to your resident’s.

Keep Up with Technology Trends

Technology is constantly evolving, and rental properties can earn more money by staying at the forefront of tech trends. More and more residents are looking for access to smart home technology. Consider investing in smart thermostats, home automation systems, video doorbells, smart home assistants, and keyless entry systems. These upgrades can help you attract tech-savvy residents who are willing to pay a higher rent in order to access the latest tech amenities. 

Additionally, investing in technology can help streamline property management and make your job easier. 

Offer San Diego Residents Additional Services

Raise your rents by offering more value and service to your residents. Today’s renters are looking for more than just a place to live – they want an experience. 

Consider offering additional services such as landscaping and lawn care if you don’t already offer that. You can also begin allowing pets if you only rent out pet-free properties right now. Laundry services are becoming popular, and so is house cleaning. If it’s you or the tenant’s responsibility to change the air filters every so often, you can offer to have those delivered. Holiday decorating services are possible, as are office services such as copying and printing.

These services can help your residents feel more at home and may be willing to pay extra for the added convenience. Additionally, offering additional services can help differentiate your property from the competition and attract more residents.

Don’t be afraid to take an informal poll. Ask your residents what types of things they would like for you to provide. Would they be interested in a gym membership or a grocery delivery service? When you can roll things like this into the home you’re already providing, you can earn more money in rent and provide a great reason for your residents to stay in place at lease renewal time.

Focus on Tenant Retention

Retaining ResidentsFinding new residents is expensive, and turnover can eat into your profits. To increase your ROI, focus on retaining the residents you currently have, especially if they pay rent on time, take care of your property, and pay attention to the lease agreement. 

Offer incentives for residents who renew their lease, such as rent discounts or upgrade packages. Additionally, make sure your tenants are happy and satisfied with their rental experience. Respond quickly to maintenance requests and address any issues that tenants may have. Happy tenants are more likely to renew their leases and recommend your property to others.

The rental market is always changing, and to stay ahead of the curve, real estate investors need to be innovative and adaptable in their strategies. By making energy efficiency a priority, keeping up with technology trends, offering additional services, focusing on tenant retention, and embracing green strategies, investors can increase their ROI in a changing rental market. 

These strategies may require some upfront costs, but the long-term benefits will make them a worthwhile investment. By investing in your rental property, you can attract and retain high-quality tenants, reduce turnover, and increase your profits.

Would you like some ideas based on your unique property? We would be happy to provide them. Please contact us at San Diego Residential Property Management.