The end of the year is fast approaching, and before you know it, it’s 2022. While the pandemic still has lingering effects all throughout the world, 2021 was undoubtedly a better year compared to 2020. While rents dropped everywhere last year, they have recovered in most places to pre-pandemic levels. Some areas are reporting even higher than ever rental rates even compared to before the pandemic.
As a property landlord, what should you do before the year ends to prepare for the new year?
1) Check if your property, or properties, need improvement
Now is a great time to take a look at your investment properties and see if there are any upgrades or repairs that need to be done. Property values are up across the country, so you may have better chances of using your property equity to make improvements that will pay off in the long run.
2) Take a closer look at your current tenants
The eviction moratoriums earlier this year are no longer in effect, but it is still worth looking at who your tenants are. Maybe some of your tenants are up for renewal. Make sure you are happy with your current tenants before you renew their leases. Did they pay on time? Do they have a good credit history? Did the eviction moratorium gravely affect your bottom line? If you are unsure about your current tenants, you might want to replace them with tenants you are more comfortable with when their lease is done.
3) Offer short-term leases
While many companies and offices are slowly brining employees back to work physically, there are still a lot of employees who are working from home. Some may have hybrid work situations, where they can spend some days in the office and other days at home. Many employees have also decided to leave their current employers to search for a permanent work from home situation.
In these types of cases, there are people who may want to try living in a particular city or neighborhood for a few months before fully committing to settling down there. Short-term leases are great options for these types of tenants. Although you may think that these are more challenging tenants to look after, there are also benefits to this type of set-up. One is that short-term leases tend to have higher rental rates compared to long-term rentals. If you can line up several short-term tenants, this will make your rental property more profitable in the long run.
These are just a few essential things all property owners and managers should look into as the year comes to an end. Although 2022 is still uncertain, many people have high hopes that the pandemic is finally wrapping up. The good news is that the rental market is doing better than ever, and hopefully this continues well into the new year.
Do you need help managing a rental property or with home remodeling? Learn more about rental news, managing rental properties, and find helpful advice on maintaining your investments on the Illume Property Partners website. Contact us today.
Source: Million Acres