7 Ways a Kent Property Manager Can Maximize Your Home’s Rental Income
With average rental rates in the Puget Sound region at all-time highs, many people have decided to rent out their single-family homes for cash flow. As easy as it sounds to collect a check every month, there are many challenges that homeowners face when leasing their property. Finding tenants, collecting rent, and processing evictions all become responsibilities. This makes what should be passive income feel very active.
Hiring aproperty manager in Kent can be a strategic and profitable decision. Companies like WPM South take on all the day-to-day responsibilities of a landlord, reducing the amount of work a homeowner has to go through to collect rental income. Here are seven specific ways that a property management company can maximize this income.
1. Accurate Market Rates
The real estate market is constantly fluctuating and it’s difficult to know what you should list your home for. Listing it too high can turn potential tenants away and listing it too low can lower your potential for income.
Property managers have direct insights into the local market and will know exactly what to price your home at so that you can maximize monthly income. They’ll be able to identify the highest rate that you can charge without scaring away viable tenants.
2. Automated Rent Collection
Collecting monthly rent seems easy enough — your tenant just sends you a check in the mail and suddenly you’re paying your mortgage and profiting on top. The reality is, however, it’s much more difficult to collect consistent rent. Tenants can forget due dates, intentionally withhold rent to pay other bills, or refuse to pay outright.
Property management companies in Kent like WPM South have automated systems that collect rent consistently and on time. Tenants store their bank account information within these systems so that rent is automatically deducted every month.
3. Thorough Tenant Screening
Most landlords will tell you that the most difficult part of renting out a home is finding a quality tenant who will pay on time and respect the property. For a homeowner who’s looking to rent out their residence, vetting tenants is an overwhelming process. How do you find a good tenant? What do you look for when screening? What can be legally asked on applications?
A Kent, WA property management company handles every administrative part of tenant screening, including:
- Applications
- Income Checks
- Credit Score Reporting
- Background Checks
- In-Person Meets
This maximizes rental income because you’re more likely to have a professional, long-term tenant who has consistent income. This reduces the risk of delinquency, evictions, and high turnover rates.
4. Reduced Vacancy Time
The time between when a tenant moves out and another tenant moves in is a hidden killer of rental profits. Just one month of missed rent can significantly reduce total proceeds. Most new landlords aren’t equipped to handle the transition between tenants.
By hiring a property management team, you can have minimal downtime between occupancy periods. A good manager can get a new tenant in directly after the old one leaves, maximizing your income.
5. Higher Quality Listings
You probably already know that professional photos can increase the speed at which a home sells and for what price it sells at. According to Redfin, a house in the $400,000-$500,000 range can sell 22 days faster when it has high-quality listing photos taken.
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The same concept applies to rental listings. Property management companies in South King County will take professional pictures of your unit and create a top-quality online listing. This will attract higher-paying tenants, allowing you to charge more for the same rental.
6. Add-On Fees
The National Apartment Association has found that the amount of money landlords are receiving from “other income” sources is increasing year over year. They found that more rental unit owners are diversifying their income beyond simple rent collection. Some common forms of add-ons that can increase how much revenue you bring include:
- Pet Fees
- Laundry Fees
- Administration and Application Fees
- Car Parking and Storage Fees
- Amenity Fees
- Move-Out and Cleaning Fees
It can be difficult for an independent landlord to implement all these fees and stick to collecting them. With a professional management company, however, these additional income sources are easily baked into the lease, resulting in a long-term income stream that increases annual profit.
7. Improved Tenant Satisfaction Resulting in Higher Renewal Rates
Property managers are experts at ensuring tenant satisfaction. They respond to maintenance concerns and answer lease questions quickly, helping tenants feel like their needs are being met. In the long run, this leads to higher retention rates.
The longer you have the same tenant, the less you’ll lose profits from turnover and vacancy. Additionally, satisfied tenants are more likely to renew their leases at higher market rates because they are happy with their residence and the managing team.
Rely on WPM South as Your Kent, WA Property Manager
Here at Windermere Property Management, we specialize in helping homeowners rent out their properties. Our owner-focused services are comprehensive and they include everything from tenant screening and marketing to maintenance and rent collection.
We treat your property like it’s our own, so you can have confidence that your house will always be in tip-top condition, even when you’re not there to care for it.List your home with us today and enjoy maximum revenue from your rental property.
