Investing in Miami real estate is a great way to build wealth and financial security. But to really maximize what you earn, you need to make smart decisions. Trident Management works with our owners and investors to increase their earnings and reduce their expenses. Tell us about your investment goals, and get some of the best advice we have for anyone who owns rental property in Miami.
Always Hold Your Miami Real Estate Assets
Investing in real estate generally means more stability investing in the stock market. However, we’re subject to market trends we can’t control. There can be steep spikes and occasional drops. Right now, as the state and the country recovers from the pandemic, things feel a little uncertain in the real estate market.
Hold onto your real estate investment, unless you have an emergency need that makes selling sensible.
The longer you keep your rental properties, the more they will earn for you. If you sell now, you’ll face taxes, you may struggle to find a buyer willing to pay your asking price, and you’ll be walking away from an investment that has the potential to earn more for you over the next year, five years, and 10 years, not to mention any inherent appreciation.
Budget for Miami Investment Expenses
There will always be expenses associated with your rental properties, but if you’re prepared for them, you can manage the loss much better than if they are a total surprise. In Miami, preventative maintenance, for example, can help you earn more money. Pay an HVAC contractor $200 a year to inspect and service your cooling system so you don’t find yourself paying $8,000 for an emergency replacement in the middle of a sweltering Miami summer.
Additional costs you need to be prepared for include:
- Vacancy costs
- Turnover costs
- Professional Miami property management
- Routine and emergency maintenance
- Taxes, insurance, and potential HOA fees
Finding and retaining high quality tenants will keep your costs low and your earnings up. Make sure you’re proactive in screening and placing great residents. It’s an excellent reason to work with professional Miami property managers.
Consider Welcoming Pets
Many tenants struggle to secure pet-friendly accommodations and properties that welcome pets could attract long-term tenants and secure higher rates. Take steps to make your property pet-friendly such as installing higher fences and secure gates.
Lengthen Lease Terms
The highest rental yields for regular properties tend to be those associated with long-term leases. Vacant periods can make a serious dent in your yield, but a long term tenant will help sidestep many of these, and the costs associated with trying to find new tenants.
Earn More with Upgrades and Updates
You can attract those great tenants and earn more rent when you invest in simple and cost-effective updates to your rental property. Unless you have an aging home that isn’t in good condition, you won’t have to do a complete rehab. However, some fresh paint and new floors will make a huge difference financially.
Take a look at what the competition is offering. If every condo in your building offers granite counters and stainless steel, energy efficient appliances, you should have those things too. Otherwise, you’ll have to charge less for your rental home, and it may take you longer to find good tenants. Pay attention to your kitchen and your bathrooms. Upgrade the lighting and the fixtures. These things do not cost a lot.
Think about what you can do to stand apart from the competition. Amenities like a pool or free internet can help. Professional landscaping is a good idea.
Thinking about these details will help you earn more on your rental property. For any help with Miami property management and investment planning, contact us at Trident Management.