Being a landlord isn't easy. There's a lot of work that goes into managing a rental property, whether it's a single-family home or a multifamily building. But if you want to set yourself up for a successful 2022, here are a few key moves to make in the coming weeks.
1. See how many leases are up for renewal
If you own a building with multiple units, now's a good time to see how many leases are up for renewal in early 2022. If it's a large number, think about what sort of rent increase, if any, it pays to implement. Raising rents could work to your advantage -- namely, because it'll mean more money you can either pocket or invest.
In fact, rents are up on a national level, which indicates that in most markets, the demand for housing is there. At the same time, you don't want to impose too hefty an increase and wind up with vacancies, so you'll need to work on striking that balance.
2. See if your current tenants are satisfied
Maintaining good relationships with your existing tenants can work to your financial benefit. If you're an involved landlord who caters to tenants' needs, they'll be more likely to remain loyal.
That's why it pays to conduct a tenant survey before the end of the year. See what your tenants' pain points are so you can think about addressing them. This is especially important if you have a lot of leases coming to an end.
3. Map out a budget for improvements
That elevator that always seems to be on the fritz? It may be time to replace it. The same could apply to the dated lighting in your lobby or the playground that's seen better days.
With a new year right around the corner, now's a great time to think about making improvements to your rental. Property values are up across the board, so you may have more options for tapping the equity in your property to finance projects that increase its value and lead to better tenant retention.
4. Figure out if it makes sense to expand your portfolio
Though property values are up right now, financing is still quite affordable. It's true that mortgage rates are no longer sitting at record lows as they were last year, but they're still quite competitive, historically speaking. And so it could make sense to grow your portfolio via another single-family home or even a short-term rental. Crunch some numbers and see what makes sense for you as a real estate investor.
The Millionacres bottom line
The past year has been a challenging one for landlords. Eviction bans put a lot of landlords in a tough spot, and many mom-and-pop landlords are still in the process of recovering, especially as rental assistance funds are slow to trickle in.
If you're hoping to have a financially rewarding 2022, it pays to check these items off your list before the current year draws to a close. Even if you didn't suffer a hit this past year, it never hurts to be proactive in setting yourself up for a strong year ahead.