Maximize Your Rent Roll
Your rent roll refers to the total gross rental income you receive from your investment property. Income property is one of the biggest sources of passive income. As a property investor, one of your primary goals is to learn how to grow your rent roll. Consistent rental revenue is a prerequisite for a steady cash flow.
Since many Landlords plan to sell their property after a few years, maximizing your rent roll and showing consistent steady rent roll growth will support the highest possible value. The rent roll data forms the basis for the asset’s appraisal for financing purposes. A multifamily real estate investment without a maximized rent roll will limit resale value.
Several time-tested rent roll growth strategies work. To maximize your rent roll, you need to focus on increasing your rental income and minimizing your vacancy.
10 Ways to Maximize Your Rent Roll
This article will provide Summerfield’s tried-and-true ways to increase your rent roll. Follow these rent roll growth strategies to maximize your rent roll and improve your property’s performance for long-term profit.
Research, Research, Research
Effective research will always help with maximizing your rent roll. Assess your local property market, your target demographic, and your competition. Understanding all these factors enables you to make informed decisions about pricing, marketing, and other factors that may impact your rent roll growth strategies.
Define Your Target Market
Before you can effectively market to your target demographic, you must have a thorough understanding of them.
When you know who you are trying to attract as Tenants, you can design your marketing strategy to attract those people. Assess your current customers to get a sense of why they choose you. Once you identify who lives in your building and why, categorize them into groups. You then implement the right marketing strategies to attract the groups you prefer, which will surely grow your rent roll.
As an example, if your research reveals they are fond of nearby amenities like the local shopping mall or nearby skate park emphasis those elements in your marketing.
An excellent way to conduct research is by seeking feedback from former and current tenants. You can get tenant comments through a brief survey or feedback form. You must include questions concerning their decision-making process and preferences. Take this opportunity to inquire if there is anything you can do better to improve their renting experience.
Find a Niche
One of the best ways to grow your rent roll and generate improved ROI is to carve out a niche. It could involve implementing marketing that indirectly encourages a specific type of Tenant, such as short-term renters, students, or seniors to consider your property.
By finding a niche, you can develop a more targeted rent roll growth strategies and attract a particular group of renters.
Create a Marketing Plan
Once you have defined your target market and researched the competition, you must create a marketing plan. This plan should include strategies for pricing, promotions, and advertising your property’s unique selling points. By having a solid marketing plan in place, you will be able to attract the right tenants and grow your rent roll.
Social Media
Since technology dominates today’s market, you should leverage the power of social media to find your audience. According to a Global Web Index survey, the average user spends more than two hours each day tweeting, commenting, tagging, and scrolling on social media. Social media has evolved into the go-to for marketing and advertising and utilizing it in your marketing is absolutely necessary to maximize your rent roll.
Hire a Good Property Management Company
Collaborating with a good property management company can be valuable for any property investor. A property management company can help with marketing, repairs, and other aspects of property management. If they do a good job, it leads to another way to increase your rent roll since happy Tenants are willing to pay more.
By working with a good property management company like Summerfield, you can free up your time and be able to focus on other aspects of your real estate business.
Advertise
Another rent roll growth strategy is to attract Tenants by engaging in the right advertising. It could involve placing ads in ILS, online (i.e., social media), on billboards, etc. Promoting your property increases awareness, will generate interest from potential tenants, and lead to maximizing your rent roll.
The likelihood that someone will discover your property increases dramatically when you frequently advertise on social media networks. For instance, creating a Property Facebook Group page and getting your Tenants to join the group will open communication to all of their Facebook friends.
Use Technology
Technology can be a valuable tool for any property investor. Several software programs and online tools help with marketing, accounting, and property management. The marketing tools available today such as Yardi CRM Flex are necessary to track leads and maximize your rent roll. Technology and software can streamline your marketing process, centralize information, and maximize return on your marketing spend.
Hire the Right Staff
No plan, methods, or tools will make any difference if you do not have the right on-site staff. To maximize your rent roll, and hire the right people, they need to implement the right marketing, track leads, and close sales at the right rents.
Review your progress
Finally, you need to review your progress regularly by assessing your rent growth on a quarterly basis if not monthly. Assess the ROI on your marketing spend, and make changes as needed to maximize your rent roll.
Conclusion:
Follow these rent roll growth strategies to maximize your rent roll and improve your property’s performance. Each of these ways to grow your rent roll will help attract the right tenants, maximize rents, minimize vacancy, and improve your bottom line.
Summerfield is utilizing all these elements to maximize our client’s property performance. We can help increase your rent roll through comprehensive services tailored to suit your property’s needs. Connect with us today!
