Maximizing the return on investment (ROI) on your Orlando investment property requires a number of things, most of which you have probably thought of already. You know that the best earnings will require consistent rent coming in and an attention to preventative maintenance. You know that your ROI depends on expenses being contained and tenants staying in place.
You also need to communicate well if you want to earn any money on your property. If you’re managing on your own, you need to communicate proactively with your tenants and your vendors and all of your other partners, including brokers and agents and insurance experts and accountants. If you’re working with an Orlando property management company, you need to communicate well with your management partners.
Good communication delivers effective results and more profitability. Here is why good communication can lead to more money.
Orlando Property Management Expectations
If you have a property manager, you need to feel comfortable communicating with them. That’s where the relationship starts, and it’s what helps you to build trust. You’re handing over the leasing, management, and maintenance of a valuable investment. Talk about what you need and what you expect. If you don’t feel that you can, you might be partnered with the wrong management company.
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.
Communication helps your ROI when you can communicate easily and openly with your property management team.
Before you begin working with an Orlando 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.
Communicating With Orlando Tenants
The way you communicate with tenants will set the tone for your relationship and for the entire tenancy. Before they move in, make sure you have a conversation about the requirements of the lease agreement and the things you expect from them. Talk about your rent collection policy and how to request repairs and what should be done if there’s an emergency.
Landlords and tenants should talk to each other throughout the tenancy. Don’t wait until there’s a problem. Check in from time to time and thank them for paying rent on time. Ask if there’s anything they need to have a better rental experience and follow up on any maintenance work that’s been done. Make sure you’re set up to communicate in whatever way they’re most comfortable. Some people like phone calls. Millennial tenants tend to prefer text and instant messaging.
Communicating well with tenants increases your ROI because it allows you to provide exceptional customer service. That’s what tenants are looking for - service and value. When you are an easy landlord to communicate with, tenants will appreciate where they live.
Being available and accessible increases your ROI because tenants are more likely to renew their lease agreements and stay in place, allowing you to avoid turnover and vacancy expenses. That’s a huge savings and a big boost to your ROI. Keeping good tenants in place allows your cash flow to remain stable and it cuts down on maintenance costs and marketing.
Be available and responsive. Let your tenants feel comfortable coming to you with a problem or a request.
Communication and Orlando Rental Property Maintenance
Maintenance and repairs are more expensive than they’ve ever been. You have to keep up with them, however, because if you don’t, your Orlando rental property will lose a lot of its value. You’ll also have a hard time attracting and retaining tenants.
How should you communicate about maintenance?
We recommend that you accept all routine maintenance requests in writing. This allows your tenants to communicate what the problem is. They can share all the details that they’ve noticed and you’ll have a documented record of what went wrong. You can share all those details with your vendors when you send them out.
Good communication around maintenance happens after the work as well as before it. Follow up with your tenants. Make sure they’re happy with what was done. You want to know the problem was solved before you close out that maintenance request.
If you’re working with a property manager, set some standards and boundaries for how you’ll communicate about maintenance. Do you want to know every time something breaks? 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.
Communicating With Vendors and Contractors
You cannot have a maintenance process that’s based on good communication without having a solid team of vendors and contractors.
Having good relationships in place with vendors and contractors will increase your ROI because you’ll get help as soon as you need it, and you’ll also be able to access their most competitive pricing. When you’re in the middle of the hottest summer in Orlando and a tenant reports that the air conditioning isn’t working, you probably won’t be the only person calling your HVAC contractor for help. If you have a good relationship in place and you communicate well with each other, you have a chance that your property will be a priority. This protects your asset and keeps your tenants happy.
These are just a few ways good communication can help your ROI. It also helps you have a better and more profitable rental experience when you can communicate well.
We’d be happy to help with all of your communication needs and your Orlando property management needs. Please contact us at RE/MAX 200 Realty.