Most of us dream of having our own backyard, driveway, and garage one day. Recent home price increases across the United States have made this dream a bit more difficult to attain for many.
Some regions have experienced faster growth than others. The average home in Washington costs approximately $618,000. This ranks among the most expensive states in the country, following New York, California, Hawaii, and Washington, DC.
However, this is great news for owners of investment properties. With so many people looking to rent in Washington, those who have an investment property have plenty of opportunity to take their ROI to the next level.
We've compiled key information to help you do so in Tacoma, WA. Let's explore the key information you need to keep in mind.
1. Market Your Home Appropriately
Vacancies will eat into your profits and should be avoided at all costs. The way you market your home plays a large role in how quickly you find tenants. Take advantage of online tools like digital ads and social media to get your Tacoma real estate in front of the right people.
2. Increase Rent When Necessary
Conversations about rent increases are often difficult to have with tenants. Sometimes, they're a necessity.
Circumstances like high maintenance costs or rising property taxes could require you to increase your tenants' monthly rent. When doing so, ensure that you increase it responsibly.
Your rent price should be similar to homes like yours in the immediate area. If you price it too high, you could deal with vacancies. If you price it too low, your ROI could substantially drop.
3. Make Renovations
Upgrading your home can help you justify increases in rent. While this requires additional money upfront, the payoff can be exponential.
Common renovations include upgrading kitchen hardware, redoing bathrooms, and even adding entire sections to a house.
4. Properly Screen Your Tenants
Tenant screening is one of the most useful ways to increase your ROI. Renting to the wrong tenants carries many risks, such as property damage and late rental payments.
Consider details like criminal history, credit history, rental history, and monthly income. This will help narrow down potential options.
5. Work With a Property Manager
Hiring a professional property manager comes with many nuances you can't overlook. They have valuable resources you can leverage to make rental property ownership much easier in Tacoma, WA.
For example, they have extensive networks of contractors they can reach out to if your property requires renovations or maintenance work. When searching for a property manager, explore their reputation. This provides insight into the results you'll get.
Maximize Your Investment Property ROI
It's easier than it seems to take your investment property to the next level. The tips in this guide will get you started on the right track and ensure you establish the greatest chance for success.
At PMI South Sound, we strive to make property management as easy as possible for each of our clients in Tacoma, WA. Our expert team leverages contemporary technology to analyze and report rental property performance to owners. Get in touch with us today to learn more about how we can help.
