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3 Ways to Increase the Profit from Your Rental Property

Young couple who looked satisfied in a real estate rental property

Interested in boosting the profits from your rental property?

I think most of us involved in the commercial real estate business would quickly answer ‘yes’ to that question. As an expert in the business, I have a few tricks up my sleeve to help make this happen.

Here are 3 of my favorite strategies to help landlords generate more profits from their commercial rental properties.

Incorporate Cutting Edge Technologies

One of the best ways to optimize your rental property is with today’s latest and greatest technologies. Tech is continually redefining the commercial real estate industry and contemporary landlords can’t ignore its profit-boosting capacities.

One application of real estate tech for landlords is asset management. Optimize your portfolio with PropTech to perform advanced data reviews on all of your commercial assets. Use these analytics to fine-tune your approach and improve your return on investment.

Another option is to give your commercial property a much-needed tech makeover.

Incorporating Smart Technology within your rental assets will increase its value and boost its marketing position. Updating your asset’s technological infrastructure can elevate your rent rates and increase your generated profits.

Get Stricter With Your Tenant Screening Process

Landlords who want to increase their rental profits should focus on their tenant screening process. Restructuring your applications will help you wean out the weak applicants and find the tenant that best fits for you.

Make sure to keep an eye out for bad credit scores, criminal records, open lawsuits, or any similar red flags when considering prospective tenants.

Organize Your Finances

Finally, make sure all of your finances are in order.

Sloppy financial records can be the main contributor to low profits from your rental properties. Landlords need to be fastidious about their financial organization so they are aware of how much they’re spending and how much they’re generating.

Start by making a strict budget for each of your rented properties. Outline how much you’re able to spend on utilities, maintenance, property fees, insurance, taxes, and emergencies. Make sure you’re getting everything down to avoid any surprise bills later.

Compare this total value to your expected rent profits and see how the two work together. If you’re not making as much as you want to be, see where you can adjust the budget accordingly. You can also make sure your property is operating efficiently to avoid wasted expenses.

Follow this expert advice to start increasing the profits yielded by your commercial properties.

If you’re interested in commercial spaces for rent in St. Louis, get in contact with me today. Click here to browse our list of available warehouse rentals in St. Louis. I’m looking forward to helping you take the next steps to expand your portfolio.