Top-earning Louisiana landlords can earn up to $129,124 annually. This is well above the $71,011 state average. To become one of these high earners, you'll need to understand how to get the highest return on investment (ROI) for your specific property.
Read on to learn some ways that you can maximize the passive income that your investment property brings in.
Research New Orleans, Louisiana Market Trends
Analyzing market trends in your area informs you of whether you're at an advantage when renting out property. Luckily, the Louisiana real estate market currently favors sellers and landlords as we move into 2024. The demand for units is higher than the current supply.
It's critical that you dive deeper into this before renting out your property. Size, location, and the state of your property will all impact how high an ROI you can get. Learn what renters favor in a property and determine how much you can make based on what people are currently buying/renting.
Set Competitive Rent
Part of market analysis is finding out how much rent landlords with comparable properties are collecting. You want to maximize your profits, but you also need to set competitive enough rental rates that people choose your unit over competitors.
Know your market and what people are willing to pay. Keep rent low at first and increase it slightly each time people review the lease. Don't lowball yourself, but don't shoot too high initially or you'll have high vacancy rates.
Consider your costs so you generate enough income to sustain your cash flow. You'll need to pay property managers, maintenance crews, and cleaners. Make sure to add value and incentives, communicate actively with tenants, and provide incentives to those who rent from you.
Minimize Vacancy Rates
High vacancy rates mean that you'll lose income for the period of time that you have no renters. A core aim needs to be minimizing these rates by finding tenants quickly. You need to be competitive so people sign a lease ASAP.
However, you can't rent to just anyone. Some renters won't pay rent on time or will leave the property damaged. Choose tenants wisely with the help of a property manager.
They'll perform criminal background checks, look into credit scores and income, and ensure that potential renters have no past evictions.
With expert tools, professionals can also help you find tenants quickly and efficiently. You won't need to contend with long vacancy periods that cost you money.
Streamline Tenant Communications
Facilitating better landlord-tenant communications is another way that New Orleans property managers can help you generate a high ROI. They'll communicate with your tenants quickly, resolve maintenance requests quickly, answer questions, and provide help.
This increases the likelihood that people will renew their leases. It reduces vacancy rates and boosts your reputation. This will both attract new tenants and retain good ones.
Get the Highest Possible Investment Property ROI
Now that you know how to get the best ROI on your investment property in New Orleans, it's time to learn how you can begin renting out the property the right way.
PMI experts will talk with you about your individual goals and objectives so you can turn more passive income in a way that makes sense. Get a free rental analysis today to learn how much your Louisiana property is worth.