Things That Kill Your Profits As A Real Estate Investor

Rental properties continue to be an excellent hedge against inflation but, several things can effectively kill your profits as a Beaverton Oregon Real Estate Investor.

In this article, we will break down some of the things that you should not be doing in your rental property business.

Tip #1 – Not Turning Over Your Vacant Units Quickly

One of the first mistakes that many owners make is taking their time to turn over their vacant units.

Moving quickly when you have a vacant unit is essential because, the longer it’s not occupied, the more you will have to face-covering your mortgage, insurance, and other costs out of pocket.

From the moment that your tenant alerts you that they are going to be moving, you should move forward with getting the property ready for your next tenant. Getting the property ready, marketing, and advertising all takes time and it’s better to start early instead of waiting too long to get that done.

Tip #2 – Not Screening Tenants Effectively

Let’s face it, tenant screening is one of the keys to success with owning rental properties that produce consistent profits because, if you screen tenants improperly, you may rent to tenants who make your life difficult.

To avoid renting to the wrong tenants, it’s important to invest the time in thoroughly screening tenants correctly each time, including asking the right questions because, investing the time in tenant screening will produce long-term, consistent rental income for you.

Tip #3 – Handling Maintenance Issues Poorly

Rental property maintenance is something that every owner should outsource immediately because, it’s easy to think that you can handle the maintenance yourself but the reality is that when maintenance is mishandled, it can be very costly.

From your first month of owning a rental property, you should focus on building a vendor matrix. Doing this will help you to effectively know who to call when you have maintenance needs at your property.

Contact Rent Portland Homes – Professionals

Ultimately, hiring a property manager is the smartest decision you can make as a landlord because it saves you the time and hassle of managing your property yourself.

To learn more about the services we can offer you, contact us today by calling (503) 447-7735 or click here to connect with us online.

Tips For Effective Rent Collection      

Rent collection is the nuts and bolts of every rental property business because if your tenants don’t pay their rents on time, you won’t have the income that you need to cover your mortgage payment and other expenses.

Thankfully, even though you may have had a problem with rent collection in the past, you can get back on track with your tenants by following these tips.

Tip #1 – Create A Rent Collection Policy

One of the most important things to do when renting property to tenants is to have a rent collection policy. This means that you must state in writing how, when, and where you expect to be paid rent.

Breaking it down, your rent collection policy must include the following:

  • When rent is due
  • How much must be paid
  • Grace periods
  • Late fees
  • How tenants can pay

Creating a ‘rock solid’ rent collection policy will eliminate any guesswork about Oregon rent collection and ensure that your tenants are on the same page as you regarding their responsibilities.

Tip #2 – Don’t Ignore Tenants Who Pay Late

Once you encounter a tenant who pays late, don’t ignore their late payment.

Dealing with tenants who pay late is a vital part of owning rental properties because, once you ignore those tenants who pay late, there’s a strong possibility that they will pay late again in the future. After all, you let their last late payment slide.

Tip #3 – Offer Multiple Ways For Tenants To Pay Their Rent

Since we live in the internet age, it’s more important than ever before for landlords to offer their tenants more than one way to pay their rent.

This means that you should allow payment by debit, credit, ACH, check, etc. because, it’s an effective way to eliminate the age-old excuse from tenants that ‘the check is in the mail’.

Tip #4 – Hire A Property Manager

Last of all, but most important, hiring a property manager is the best way to ensure that rent is paid on time each month because a property management company will ensure that rent is paid on time each month and you won’t have to do any work yourself.

Contact Rent Portland Homes – Professionals

At Rent Portland Homes – Professionals, we save tired owners the time, money, and hassle of managing rental properties themselves.

Besides rent collection, our team also specializes in accounting, maintenance, collections, property marketing, and more.

For a property management quote, contact us today by clicking here or calling (503) 447-7735 or click here.