What can landlords to do maximize profits heading into 2021?

Question

While there's still a lot of time left in 2020, implementing big changes in the new year will likely require landlords to start planning changes sooner rather than later. At a time when there's so much uncertainty in the economy, what steps can landlords take to maximize the amount of revenue they generate from their rental properties?

Steve Morris · Answer

I don't know if its a 2021 issue or not, but I think most of the stuff an owner can do he should be constantly doing:

1) Price of utilities - In Portland, the avg annual water bill for a 2 bed = 1 month rent/year.  It's not just flat billbacks since at $50 (or whatever number), that's $50 if you don't use a drop vs $50 for leaving every faucet running 24/7.  Tenants need to use less water since less water means less sewer charge (in Portland).

2) Tenant appeal - I'd go down the list and see how you look compared to your competition.  With all the s***-birds in government, having a good tenant vs high rent bad tenant should be obvious.  Is there something you can change to get more apps so you have better odds.

3) Maintenance - I have one client that has a database on each of 100+ units.  This thing has water heater age / serial numbers and room size in case he needs to get new flooring in a unit.  I guess that's the goal but I think anything that gives you a better grip on maintenance/CapEx/appliance costs and planning helps a lot.

4) Paperwork - Right now, this is your best defense as a landlord, this means properly executed tenant paperworks delivered in a time, method and manner specified by the local authorities (which sounds totalitarian).  Join a rental owners association, you're not alone facing the same issues.  They have tenant unions and most govt/courts tilt pretty heavily in favor of tenants.  As a landlord, you are not allowed ONE screw-up.

Am writing my August sales newsletter so I may come back with more stuff later.