Any time you make an investment, you do so with one thing in mind: getting as much of a return on that investment as you can. While any gain is a good thing, you always want to get the most out of your investment as you can. Your rental property investment is certainly no different. While you may already be making some money on your investment, wouldn’t it be great to find a way to increase your profits? Here are some tips about how to go about maximizing your rental property income.
Be Picky About Your Tenants
Your ultimate success or failure as a rental property owner will be decided by the people who rent off of you. The burden of vetting your renters lies solely on your shoulders. It’s imperative that you run thorough background checks on every person who fills out a rental application and do your due diligence on each person who shows an interest in renting from you. Require references from past landlords, verify employment, check into employment history and be sure that you’re renting only to people who you won’t have to spend time in court battling with later on.
A successful landlord is one that always knows what’s going on with his or her property. Many landlords only bother to inspect the properties they own when tenants are moving in or moving out, which often leaves them finding the need for extreme repairs. Performing regular inspections will not only help you remedy issues before they become high-cost problems, but it will also allow you to keep tenants happy by maintaining a good place for them to live.
Minimize Tenant Turnover
Not only do you want to minimize your repair costs, but you should also be looking for ways to minimize your amount of tenant turnover. Keeping your good tenants for longer periods of time can only benefit your bottom line. Offer incentives to them for prompt rent payment and maintaining your property. It will cost you less to reward them from time to time than it will have vacant properties. Vacant properties are a direct hit to your bottom line.
Ideally, you’re already making money from your rental property, but there’s always a way to increase your profits.
Some real estate scams are easy to spot while other schemes use sophisticated methods to defraud people of their hard-earned money. Unfortunately, the digital era is making it easier for fraudsters to steal money from potential renters and homebuyers. However, people can easily protect themselves from fraud by following a few simple steps.
Avoiding Escrow Fraud
When potential renters and home buyers receive an email from a third party claiming to represent a title company, but the email is from a free account, alarm bells should go off. Most title companies and lawyers do not use free email accounts. The best thing to do in this situation is to delete the email and contact the title company or escrow agents to see if they did send an email, especially if the email contains new wiring instructions for funds to close.
Predatory lenders can persuade unsuspecting homeowners to refinance their mortgages multiple times. Scammers charge outrageous fees and closing costs each time they convince homeowners to refinance, and they often fail to mention the new terms will have higher monthly payments because of larger loan balances.
Many seniors are vulnerable to mortgage flipping, especially those with significant amounts of equity in their homes. The scammers will convince seniors they can find them a better loan at a lower rate, and they also convince them they will have access to a large amount of equity. However, higher fees and a new, much larger loan balance eliminates most of the home’s equity and significantly increases the monthly payment (if there was one, to begin with).
Rental fraud is not as uncommon as many people think. People scammed by rental fraud have lost millions of dollars over the past several years. In today’s digital era, many scammers will post homes, condos or other structures for rent on social media platforms and sites like Craigslist.
The fraudsters will then ask for an upfront cash deposit to view the rental. However, the “owner/landlord” actually has no connection to the property, and the rental listing was a ruse to steal the deposit. Experts suggest potential renters should immediately be skeptical of any listing where an upfront cash deposit is required to view the property.
About Jason Cohen Pittsburgh
Jason Cohen is a real estate investor in Pittsburgh, Pennsylvania. He created Jason Cohen Pittsburgh, a group of real estate enthusiasts committed to helping others invest in real estate, and he has thrived in the area since 2002.
As Jason’s career has grown and flourished, so has Pittsburgh itself — transforming from an industrial “rust belt” city into a major cultural center abundant with high-end multi-family rental properties. Jason has seamlessly handled the dynamic nature of Pittsburgh and of the real estate industry in general. A research-driven professional, he consistently enables smart and profitable investments in the area, helping to transform modest properties into high-end rentals in Pittsburgh’s hottest neighborhoods.
Jason Cohen first entered the world of real estate shortly after his graduation from college. He started out by investing in distressed properties in Pennsylvania. After some experience working full-time for a real estate company, he decided to pave his own path in the industry. He has worked as an independent real estate agent and developed the Jason Cohen Pittsburgh team ever since. The team consists of highly qualified investors, property managers, leasing agents, and contractors.
Over the course of his career Jason has become highly proficient in acquisitions, joint ventures and partnerships, multifamily real estate investments, asset repositioning, real estate management, real estate brokerage, and new construction. He has excelled in high-level investment strategies, but is also no stranger to “ground work” when it comes to the industry. He is well-versed in each step of Jason Cohen Pittsburgh’s unique system: researching local areas and investing in properties, performing renovations to transform these properties from dilapidated eyesores into high-end units, and ultimately repositioning the properties for maximum profit in renting and selling.
Jason Cohen Pittsburgh is the group of choice for anyone who needs advice, analysis and due diligence, and general expertise in matters of investing, whether they are short-term or long-term. Jason Cohen Pittsburgh has dealt with properties in a variety of neighborhoods throughout parts of Pittsburgh, including the South Side, Oakland, Shadyside, Squirrel Hill, Mt. Lebanon, and Regent Square. Each and every one of these locations, paired with Jason’s overall knowledge of real estate investing, has allowed him to play a part in restoring Pittsburgh’s place as one of the most popular cities in the United States.
This blog will share news, updates, and insights regarding Pittsburgh and its real estate market from the perspective of Jason Cohen Pittsburgh. Stay tuned!