How to get the highest ROI for your property

Your rate of return, or ROI, is the amount of profit you receive from a property over time. Expressed as a percentage, the ROI is calculated by dividing the net operating income by the cost of the investment and then multiplying it by 100. Of course, a number of variables will influence these figures, including the cost of repair and maintenance on the property, taxes and l interest paid on the borrowed amount. Fortunately, there are several steps you can take to increase ROI, effectively putting more money into your bank account.

Properly maintain and prepare the property

Properly maintaining and preparing your property will make it more attractive to potential tenants, thereby allowing you to maximize your rental cost, while ensuring a very low tenant turnover. If you've purchased a new property, make sure it has clean carpets, working appliances and fresh paint before putting it on the market. Get these items completed in a timely manner so that you can reduce the amount of time the property is out of business.

Invest in effective marketing strategies

Effective marketing strategies will help get your property out of the market as quickly as possible and at the same time help you attract the best potential renters. List your property on more than one website and take steps to target those renters who are most likely to be interested in the type of property you have available. For example, if you’re buying a property in Curacao is located near a university; you will need to focus your marketing strategy on college students or college employees to get the best results.

Implement an in-depth screening process

Increasing ROI requires much more than finding a body to live on your property. Rather, your goal is to find quality tenants who will take care of your property, who will make rental payments on time and who is likely to stay in your property for a long period of time. After all, every time your property is empty, you are losing money. During tenant screening, the process should include a credit check, a criminal check, income and employment verification, a reference check and a check on the applicant's rental and eviction history.

Complete routine inspections

To ensure that your property is properly cared for, you should conduct regular property inspections throughout the year. After all, you don't want to have to make expensive repairs after a tenant has moved in. This will not only damage your wallet in advance, it will also allow you to keep your property out of business while doing these repairs. Every day the property is out of business, you are losing potential revenue.

Of course, performing routing inspections also gives you the opportunity to meet your tenants and make sure everything is working properly. If conducted properly, these regular inspections can result in happier and more satisfied tenants who are therefore more likely to continue renting in the long term.

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