At McSherry Property Mnagement, we are located in northeast Philadelphia, and people often ask us how to increase their return on investment, or ROI, in this area. You’d think there would be a simple answer, and part of it is simple. But, as with most things, part of it gets a bit more complicated.
INVESTING IN RENTAL PROPERTIES IN NE PHILADELPHIA COMMUNITIES
In northeast Philadelphia, we have various communities. There’s not just one northeast Philadelphia neighborhood. If you want to do some real estate investing here, you can look at communities such as Bustleton, Woodhaven, and so on. Each area has different economics. If you don’t know the areas in Philadelphia, go to a demographic website such as www.usa.com. It’s a great, free site that will provide typical incomes and housing styles for different communities.
INVESTMENT PROPERTIES: CONTROLLING COSTS AND ASSET ENHANCEMENT
Another way we enhance ROI throughout this area for the people in our portfolio is to control costs. Knowing which plumber to use can save you hundreds or even thousands of dollars. Asset enhancement is another way to increase ROI. This includes the right tenant placement. Getting a tenant in place in less than 30 days will earn you a lot more than a vacancy that lasts 90 days. We have to roll a unit quickly after a tenant moves out. You want to get the property rent ready within 30 days and a tenant in there within five days. Often, we do this within 15 days, and that helps our owners’ ROI. Quick tenant placement allows you to collect rent faster. That’s your business; earning rent.
You can try some of these things on your own as an individual landlord, but a professional management company has a lot more expertise. We can help you with what to expect.
PROPERTY MANAGEMENT IN PHILADELPHIA: MAXIMIZING ROI
Maximizing your return on investment requires two things. First, you have to make sure your rent is at the market level. Increasing the rent will increase your ROI. Then, you have to focus on asset enhancement and control your costs.