Managing rentals is a great way to generate passive income, but it can be tricky knowing how to increase your ROI with landlord-tenant software to reach that magical state of passive income landlords strive for.
Especially if you’re a new or first-time rental property owner, your head can spin wondering how to get started, what mistakes to avoid, how to find the right tenant, and how much to have in your rental property reserves.
Ultimately, while there are a myriad of strategies out there to increase your ROI, one key factor in reducing the time and money is landlord-tenant software.
Consider managing your rentals like running a well-oiled machine. The more time, care, and energy you put into that machine the more it can—over time—run itself. However, in the rental property business, one spoke in the wheel or burst water pipe can put financial strain on your rental business.
It’s important to be lean and efficient where possible, so your rental reserves aren’t being used to cover day-to-day business expenses and can instead be saved for what they’re there for: the sudden and unexpected costs that come with running a rental property business.
Long-Term Retention Strategy for Renters
Of course, the most obvious way to increase your return on investment is by retaining renters. This is important because tenant turnover can cost you big in terms of vacancy time and screening tenants—especially year-over-year. Even more dangerous to tenuous finances are cases of an eviction, which can very quickly escalate costs, depending on your state and the type of tenant.
There are easy ways you can retain your renters, such as keeping the rent reasonably priced, being responsive to repair requests and other tenant communications, and offering some type of amenity (like smart amenities, free storage or parking, or even in-unit washer and dryer) or other incentives to stick around.
Additionally, leveraging the increase of smartphone users to provide a mobile rental management portal to pay rent, submit repair requests, and receive property-related updates can go a long way to creating a healthy, harmonious business relationship with your tenants that entices them to stay.
Save Costs by Self-Managing
If you’re just starting out in investing in properties, you can save a lot of money by managing your properties yourself. Property management companies or software will charge more for tenants or units, which can quickly add up.
According to an in-house survey, RentRedi landlords indicated that RentRedi saved them at least 8 hours/week. Additionally, another benefit of RentRedi is that we can save you $141/month in management costs as well and there are no additional fees for units or tenants. Which can be crucial when you’re just starting out and trying to stay lean.
Increase Your ROI with Landlord-Tenant Software
Of course, organization is key to managing your time and money productively so investing in a scalable landlord-tenant software can help you keep all your properties and payments organized, show up as a professional to your tenants, and create an efficient listing-to-lease process to cut down on vacant units are all critical to preventing daily strain your finances.
But, not every online software is the same. Talk to other landlords to see what they recommend as must-haves for property management software and do your own research. You can find a lot of good information by comparing software and reading reviews before deciding which software will give you the best experience.