Earning as much rent as possible on your Philadelphia investment property is one of the best ways to ensure short-term cash flow and long-term returns. It’s not as easy as setting the highest possible rental price and collecting checks, however. To maximize what you earn, you’ll need to implement some smart strategies that increase your income and reduce your expenses.
A Philadelphia property management company has the resources and systems in place to make that happen. We’re sharing some of our best tips, and showing you how TCS Management achieves higher rental prices for your Philadelphia investment property.
This is one of the best reasons to work with us.
Pricing Your Philadelphia Rental Property for Profit
The right rental value impacts what you earn, and it also impacts the types of tenants you attract to your property. Our goal, when we decide on a rental price, is to ensure you’re both profitable and competitive. We’re able to do this because of our deep market knowledge and our investment in technology. The property management insights and data we gather allow us to analyze what similar homes are renting for, and how long it’s taking them to be occupied.
We take a detailed, microeconomic look at your competition. This is what leads our pricing strategy. When you have a unique property on the market and there’s high demand among tenants, we know we can push that price a little higher. If there are dozens of homes just like yours available in your zip code, we know we have to be more competitive and offer a lower price or other incentives.
This does not mean you’ll lose money. Bringing your price down by $100 a month does not necessarily mean a loss. It could mean saving you from two months of vacancy or an unqualified tenant. That’s actually going to translate for more money for you.
Right now, rents in Philadelphia are still high. We know that your property, if it’s well-maintained and located in a desirable neighborhood, can rent for a great price. We’re going to make sure your rental value follows the market, attracts the best tenants who are looking for a new home, and keeps your vacancy loss low. This happens because of our deep market knowledge and our impressive property management technology.
Keeping Costs Down: Philadelphia Rental Property Maintenance
Well-maintained properties are more profitable.
It’s not always easy to stay ahead of the maintenance game when you’re an independent landlord. Finding vendors and contractors who are available to work is enough of a challenge. You’ll also notice that costs have risen dramatically over the last year or two.
Keeping costs in check when you have repairs that are needed at your property requires excellent relationships with vendors and contractors. If you don’t have those relationships in place already, you may find yourself struggling to find someone to help you when you need it.
At TCS Management, we have an excellent team of maintenance professionals ready to prioritize the work we need done. We’re able to keep costs down; our preferred vendors provide discounted pricing because of the volume of work we provide.
Maintenance is where the bulk of money is spent for real estate investors. From turnovers to renovations to emergency leaks and HVAC problems, there’s always something that needs to be repaired or replaced. With a Philadelphia property management partner like TCS Management, you won’t have to worry about overspending on maintenance. We prevent deferred and unreported issues. We conduct preventative inspections and provide a full accounting of anything that’s spent protecting the condition and value of your property.
This leads to a higher rental value and fewer expenses for you.
Tenant Retention and ROI
Tenant retention is a secret weapon when it comes to earning more on your investment.
Smart investors know that the return on your investment depends on consistent and recurring rental payments. Vacancies disrupt that; even a month without rent can hurt ROI.
Turnover costs are even more expensive than the loss of rent. You’ll have to invest money on maintenance, repairs, cleaning, and landscaping. A lot of effort and resources will go into preparing your property for a new tenant. There are marketing and advertising costs, too, and all of the utilities you’re paying for during that vacancy are out-of-pocket. There’s no rent coming in to offset that cost.
Our team at TCS Management has proven plans in place for holding on to good tenants who pay rent on time, take good care of your property, follow the terms of the lease, and communicate easily. We work hard to:
- Provide an exceptional customer experience.
- Share expectations and communicate transparently.
- Remain available, accessible, and responsive.
- Respond immediately to maintenance concerns.
- Provide conveniences such as online rental payments.
- Negotiate lease renewals with incentives and reasonable rental increases.
When we’re able to avoid turnovers and vacancies for our rental property owners, we know we’re helping you earn more money on your investment property.
Recommending Improvements and Upgrades
Another way that we’re able to raise your rent and maximize your earnings is by recommending the improvements and upgrades that will earn you more. Because we stay on top of maintenance, it’s rare that a full renovation is needed. But, we can tell you when replacing an appliance instead of repairing it is a better and more cost-effective idea. Energy-efficient, modern appliances in the kitchen will earn you more in rent and attract better tenants. When the carpet is ready to be replaced, we might propose hard surface floors instead, which we know tenants prefer and we know increase rental values.
Understanding tenant demands and the shifting trends in the market will benefit you during the leasing process, when we’re trying to make your property stand out in a crowded market. It will attract quality renters and allow us to list your property at a higher price. When we make these recommendations, it’s with the idea that you’ll earn more in the short and long term, even if an initial investment is necessary.
We can talk more about your unique investment goals and what we can do to maximize what you earn. Please contact us at TCS Management. TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware, Nashville, Tennessee and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
