As a real estate investor, you’re always looking for ways to maximize your profits in Chicago. Finding the best value for your initial expenditure and also helping boost the final sales or rental price of your property is key to getting the most out of each property, helping you increase your business. If you’re looking for ways to make more money as a real estate investor, here are 4 ways you can maximize your profits in Chicago.
FIND LOW-COST EXTRAS TO ADD
The more amenities you can add to a property you’re selling or renting, the better your overall final sales and rent prices will be.
Adding some lower-cost extras can make your property much more attractive to potential renters or buyers, helping you fetch your initial, higher asking price.
Some ideas of low-cost items you can add to your investment properties to increase your profits in Chicago include:
Replacing knobs and pulls on cabinet doors
Giving bathroom and kitchen cabinets a fresh coat of paint
Adding a washer and dryer
Changing up the landscaping
Replacing carpeted floors with laminate or tile floors
Power wash the exterior, driveway, and sidewalks
These small changes can help you fetch higher prices and improve your overall profit margins.
PRIORITIZE RENTER SCREENING
If you rent out your investment properties, you know how important it is to find good tenants who are going to stick with you long-term and pay their rent on time.
Many real estate investors who rent out their properties, however, don’t spend the time they need to on renter screening. They run a background check, meet with the potential renter, and maybe check a reference or two. This can cause big problems down the line when it turns out the tenant isn’t as great as they initially seemed.
To help increase your profits in Chicago, commit to carving out time on a regular basis to thoroughly screen your tenants. Look through their credit reports, ask for bank statements, and call for employment verification to help ensure their bill-paying history. Call their listed references to see if they’re likely to flake on paying rent or cause damage to your property.
This process gives you a better chance of finding higher-quality tenants and not having to chase people down for rent.
TAKE PAYMENTS ONLINE
Tenants who pay online are far less likely to not pay their rent than those who are only allowed to pay by check.
Find a way to take payments online to help capitalize on this and improve your profits in Chicago by taking payments by bank transfer, credit card, or other online payment processing.
Your tenants will be able to pay their rent from anywhere in the world they have internet access, so there’s less of a chance they will be out of town on the day rent is due and forget to leave a check before they head off. Additionally, most online payment processors come with automated email and text reminders, so you’re able to follow-up more quickly and easily – and with less expense – with those renters who have not paid their rent yet.
CREATE A MAINTENANCE SCHEDULE
Many renters are attracted to renting because they don’t have to take care of home maintenance tasks on their own. For many, this extends beyond replacing air filters and fixing leaks into items such as shampooing carpets, cleaning ovens, and cleaning out the dryer lint trap.
Not taking care of these tasks can decrease the life expectancy of some of the more expensive appliances, costing you money over time.
To help improve your profits in Chicago, set a schedule for reminding your tenants to complete occasional maintenance tasks such as cleaning the oven, then checking in to see if they complete the task. You may even consider discounts or other incentives for those who participate on a regular basis.
Your Trusted Real Estate Agent Partners
If you’re looking for a trusted real estate agent to partner with and help you maximize your profits in Chicago, contact us today at 773.233.8180!