Enhanced Passive Income: Improve Rental Property Value and Increase Rental Rates
Rental property owners typically fall into two classes: Long-term landlords, and investors. Though both these classes of real estate owners have common goals – to make the property as profitable as possible – their time horizon differs. Landlords are in it for the long haul, while investors typically buy low, with an objective to sell high in future. Professionals in property management in Baltimore County can help both sets of rental property owners meet their objectives.
What Rental Property Owners Want
As a rental property owner – with a long or short-term perspective – your primary focus is to maximize the value of your investment. If you owned rental property in Baltimore County since 2012, and intended to sell recently – you’d be ecstatic! You’d be happy with a nearly 40%[i] increase in property values across the County over that time. In the past year alone, well-maintained and managed properties in the County have seen almost 10% price appreciation. So, if they work with a reputable firm providing property management in Baltimore MD, investors in Baltimore County rental properties have done well.
Whether you invest, or whether you own as a landlord – income generation is often key to your plans. For investors and landlords looking for a steady flow of income, Baltimore offers equally bright prospects. Early this year, the average renal value for a 1-bedroom Baltimore apartment saw a 10% year-over-year hike – to $1,322. Over the past month alone, Studio apartment rents rose 16% to $1,505. The month-over-month percent increase in 2-bedroom rents was 5% – to $1,415. As an income-seeker, Baltimore landlords too are very happy.
Getting What You Want
The numbers above are “averages” – and renters know that as well. When they set out to find rental homes or apartments, renters look for clean, well-maintained, units. And most are willing to pay a premium to get what they’re looking for. Experts in property management in Baltimore County will tell you that, to get what you – the landlord or investor – want, however, you need to:
- Ensure the outside of your properties look good
- Take care to make landscaping elements especially attractive
- Don’t ignore the insides – painting, carpeting, appliances
- Your properties must be well-marketed and advertised
- Showings are flawlessly managed
- Screen tenants for the best value
- Stay on top of preventive maintenance and repairs
- Raise rents appropriately with each lease renewal
- Charge a premium rent for month-to-month leases
- Consider allowing pets and charging tenants a Pet Rent
One of the best ways to leverage value from your rental property investment, is to price your rents appropriately. If you are a do-it-yourself landlord or rental property owner, you might not have the networks and resources to understand rental market dynamics – which change quickly, depending on the environment and the economy. Work with a local company that’s experienced in property management in Baltimore MD to price your rents according to the value of your property – not what a neighbor’s rental unit charges.
When a discerning renter visits your neighbor’s property, he/she will likely expect similar rental rates from your properties too. However, because your units are professionally managed, and expertly-maintained, renters will immediately see the difference, and notice the higher quality of life your property offers. And that fact convinces them to pay premium rates.