Maximizing the ROI on your Chicago investment property requires a number of things. You need to have rent coming in consistently, you need to keep your expenses down, and you need to make sure your property is well-maintained.
You also need to communicate well with your Chicago property management company.
Good communication delivers effective results and more profitability. Here are some of the reasons you need to make sure you’re communicating well with your property managers.
Expectations Drive Investment Results
Your property manager should have a clear understanding of your investment goals. If you’re expecting your property manager to do nothing more than collect rent and find a tenant, you’re not going to earn as much as you can. But, if your property manager understands that you’re hoping to sell the home in 10 years and you want its value to grow steadily over those five years while your mortgage balance is paid down, there can be specific strategies put into place to help you reach those goals.
Before you begin working with a property management company, talk to them about what you’re hoping to accomplish. Your goals need to align with your property manager’s methods and values. If everyone is excited and working towards the end goal, you’re going to earn more.
Communicate a Maintenance Plan
Maintenance is often one of the costliest parts of owning a Chicago rental property. Nothing will eat into your ROI faster than a water leak that creates mold or a furnace that dies in the middle of a cold winter. Communicate with your property manager about maintenance budgets and preventative plans. Talk about having the heating and cooling unit inspected and serviced every year so it continues working well. When those needs and expectations are discussed, there won’t be any confusion about the work that should or could be done, and you’ll save a lot of money on unnecessary repairs.
You probably don’t want to be called for an approval before a garbage disposal is unclogged for $50. But, a $500 roof repair may be something you want to discuss before the work is done. Communication is critical here. You need to talk to your property manager about what kind of maintenance can be done using their judgment alone and what types of repairs will require approval from you.
Talk About Your Tenants
Your ROI improves when tenants are retained. If you have great tenants in place who pay rent on time, take care of the property, and cause no problems, you want to make sure your property manager is doing everything possible to retain those tenants. Keeping them in place will save money on vacancy and turnover costs.
Talk about tenant performance. When a lease renewal is coming up, have an open and honest talk with your property manager about whether raising the rent makes sense and if so, by how much. Trust your property manager to know the market and the tenants. When you make decisions together and communicate what you’re hoping to achieve, your income goes up and your expenses stay low.
These are just a few ways good communication can help your ROI. It also helps you have a better investment experience overall.
We’re great at communicating, and we’d like to tell you more about our Chicago property management services. Contact us at Medallion Property Management.