If you want to maximize your ROI on your rental properties, you need to be sure that you’re charging market rate for rent to your tenants.
If you’re an investor with a rental property and have had the same tenants for a long time, I wanted to share a few things that you might want to look out for.
You always want to maximize your ROI on rental properties, and what we’re seeing currently is that there are a lot of investors who just aren’t charging market rate for rent. This is happening in commercial real estate, long-term residential rentals, and even vacation rentals.
A classic example is an investor who bought a property many years back and continued to charge the same rental rate to his tenants year after year. He runs into a serious problem when he goes to sell the property, and his tenants are unable to afford the current market rate that the new owner will charge them.
The problem is further deepened when he realizes that they can’t leave either due to various reasons, like working in the area or being unable to afford to move anywhere else.
If you’ve dealt with investment properties in the past, then you know that getting rid of a tenant is expensive, time consuming, and often requires hiring an attorney. Many times during this period, they aren’t even paying rent.
If you have any questions about how you can maximize your ROI and avoid the pitfalls of a messy tenant removal situation, please give me a call. I’d be happy to help.