The reason we’re in business is to, first, protect, and then increase your ROI.
We make our living based on your ROI, and your quality long-term investment experience. As a result, your passive ROI experience has to be at the forefront of everything we do. Increasing ROI is our calling card, and the reason we are one of the largest property management firms in eastern Idaho.
Following are eight ways we actively demonstrate that we care about the ROI of your property investment.
Buy the right property
In today’s Eastern Idaho market, many investors are finding that they are required to reposition a property to attain the returns they require. In these situations Jacob Grant can help you build a budget so you are fixing the correct things to maximize your passive experience. This means upgrades that are hyper focused on rent increases. No fluff means the passive dollars are working as hard as possible.
Jacob Grant will help you from budget to bid to returns on your reposition project so you are not investing in a property that does not maximize your long term return on investment.
Screening your tenants
Jacob Grant has a thorough and strict tenant screening process. We want your properties to have tenants with the best track record possible, stay in your rentals, and cause as little damage as possible. While human beings are living in your properties there will be human error. Nothing, and no-one is perfect, but properly screened tenants will respect themselves and your properties and cause you the least amount of loss to your ROI possible as a result.
Well screened tenants will be secure in their employment, and as a result, will be in a position to make their rent payments on time without interruption, further protecting your ROI. A steady stream of on time rental payments is what makes for a consistent monthly ROI.
The tenants we select for your properties will be financially responsible people that make the correct choices with their money. That means paying for necessities first, and frivolities later. Tenants that are good for your rental business will pay the rent on your property before they pay for a big screen TV or other items that might be considered extras. Again, this is how we protect your ROI.
Well screened tenants will not violate the lease they agreed to, and engage in behaviors that will damage your properties, and as a result scoop money out of your ROI. Our well screened tenants will not have a car torn apart in your property’s garage ruining the concrete floor with dripping or spilled oil. Dirt and filth will not be tracked into your rental unit ruining the carpet and other flooring surfaces. There won’t be unauthorized pets in the unit causing damage. Our screening processes and contractual stipulations prohibit these damaging behaviors and conditions that will take away from your ROI.
Critical to maintaining anything is scheduled inspections. The ROI of your property is no exception. Regardless of the level of quality of the well screened tenants that we place in your properties, their reason for being there isn’t to constantly inspect your property for wearing items like faucets, roofs and other items that a well trained maintenance specialist will notice. Normal wearing items that might cause costly damage over time will be caught and repaired before they can erode your ROI through scheduled inspections.
However, a scheduled inspection encompasses another part of protecting your property from loss of ROI, lease violations. If tenants feel that there is no oversight they might be inclined to, bend the rules, or do something that they feel causes no real harm or is even be helpful in their eyes.
Despite the lease saying no pets, which means no pets, a renter might feel that there’s no harm in say, having fish in a small tank, or maybe a caged animal like a gerbil. On its face that may not seem to most like a problem but the lease plainly states that’s not the case. Because the number one priority is to gain your maximum ROI, this lease violation is not acceptable and cannot be allowed.
In regards to tenants seeing their actions as helpful, they may make unauthorized improvements to your property. A prime example would be painting or caulking around a tub, or other fixture in the rental. There’s not malice in a behavior like this, and other do-it-yourself landlords might find this to be in line with not only an absence of malice, but at the same time helpful, and an indication of a conscientious care for the rental unit.
The problem with unauthorized improvements, is that they may not meet professional standards required in a rental unit that will maximize your ROI.
This makes the importance of scheduled inspections by Jacob Grant technicians doubly impactful to your ROI. If trained, professional, maintenance technicians have a regular presence in your rentals, they can spot needed repairs to your rental unit before the tenant will feel the need to take action.
In addition, Jacob Grant technicians will spot lease violations such as the aforementioned unauthorized pets that could be damaging to your property because of pet odors, visible damage to the interior of the rental unit, and the potential for the conflict of the pet with other tenants in a multifamily rental structure.
Maintenance of your rental properties is crucial to your constant ROI, its continued growth, and not a financial burden that costs you, the rental investor, without benefit.
Because you invested in a strategically well placed property that is positioned for maximum ROI, judicious maintenance is a logical step in ensuring your ROI on that property, and continuing its growth.
It’s a commonly held fallacy that property maintenance causes a reduction in ROI. This fallacy is most commonly held by do-it-yourself landlords. At Jacob Grant we hold the opposite strategy. We don’t believe, we know through the experience of managing eight hundred doors, that maintenance is how we maintain, and increase your ROI.
When Jacob Grant’s maintenance personnel are called for a repair, are performing a scheduled inspection, or are simply driving by your property to see if it’s in a condition that meets the requirements of the lease, we note those maintenance items that will preserve your properties’ ROI.
If the item(s) we have noted are under the agreed financial threshold, we schedule an appointment for a maintenance technician to correct the problem(s) in a timely fashion. You, the investor are not bothered with questions of the viability or profitability of the repair. It is simply handled so that you continue to enjoy a passive return on your investment.
Incidental inspections occur when a technician or other Jacob Grant personnel are in your rental investment, and look for, incidental wearing items in need of care, lease violations, damage that might have been otherwise hidden by the tenant, or anything that might damage your ROI.
As mentioned earlier, it’s to our mutual benefit to ensure the constant and possible increase in your ROI.
Our personnel are all trained to be aware of the condition of your investment. They are constantly looking, smelling and listening to the tenant, for any indicators that there might be conditions or behaviors that could be damaging to your ROI.
Incidental inspections during activities such as a faucet repair can be very insightful. If a Jacob Grant technician enters a bathroom to repair a faucet they will look for any abnormalities that could cost you part of your ROI. A classic problem, especially in older units, is a leaking wax gasket that would be easily caught by a Jacob Grant technician.
A leaking wax gasket is an item that, left unrepaired, could cost hundreds if not thousands of dollars. A wax gasket at the base of a toilet costs maybe five dollars, and a minimal amount of time for a technician to repair. If serviced by a Jacob Grant technician, the cost would be so minimal, that you as investor would be unaware that the action was even taken when it happened, because it would most likely fall under the threshold of requiring your approval at the time of repair. This is another example of how working with Jacob Grant Property Management provides a hassle free investment experience that maintains your ROI.
In contrast, if left alone, that minimal repair could cost thousands. The water from that toilet will work its way under the toilet, under the flooring, into the sub-flooring, and if on a second floor unit, into the floor/ceiling cavity. This not only will cost thousands in repairs to possibly both units but it could be considered a health hazard.
Advising on improvements to maximize ROI
What to do, and what not to do, to improve your investment properties is a shot in the dark for many do-it-yourself landlords because they don’t have the necessary experience or data to make business based decisions.
Investment property improvements are extremely difficult for investors that don’t have a long-term investment plan that maximizes ROI over a ten year holding plan. However, judicial investments made with a business investment mentality, not only don’t erode ROI, they improve upon on it.
The opposite can be true of investors also. Investors, eager to attract a higher end tenant, can be inclined to make improvements that don’t increase long term rents. Jacob Grant can help advise you on these decisions so you do not make investments that do not increase returns.
A classic choice is flooring surfaces. An investor might be attracted to the idea of replacing worn flooring with high end surfaces such as hardwood and tile.
Hardwood and tile are excellent surfaces and make even a marginal investment property shine with a rich appeal. However, in our experience, Luxury Vinyl Flooring, or LVF, is most often the best choice for a maximum return on investment.
The installation and materials costs for LVF are a fraction of hardwood and tile, and the appearance of LVF is exceptional. Also, there is no costly maintenance to LVF which would eat into your ROI.
Utilizing LVF is one example of how Jacob Grant’s personnel advise investors on what investment property improvements will maximize annual and multi-year income, and at the same time increasing the resale value of their investment, thus maximizing ROI by rewarding patient, considered, investment.
Adjusting rental rates for maximum ROI
Deciding where to place your investment property in the market through rental rates is second in difficulty only to deciding which property to buy. If you charge too much, you can suffer a thirty dollar a day loss due to lack of occupancy. Charge too little, and, although you may gain tenants quickly, you will lose monthly ROI.
Because Jacob Grant manages such a large number of properties across a number of individual markets in eastern Idaho, we’re uniquely qualified to assist you in this crucial choice. You will be comfortable when working with Jacob Grant knowing that your investment is earning the maximum possible in its given market segment, at any time.
lease renewals and marketing
An added benefit of Jacob Grant’s inspections, maintenance, and advice on profitable improvements to your properties, comes when it’s time to either renew the lease on your investment property, or find new tenants. Because you have a well positioned and maintained investment, the likelihood that the current tenants will renew their lease is excellent thus maintaining consistent ROI.
If the tenant’s life plans necessitate that they move, you have a property that will be easy to market and re-occupy. Our leasing department endeavors to market your investment through every channel possible, including, real-estate advertising websites, and social media. High quality walk-through videos are made by knowledgeable people that are eager to show the benefits and features of your property.
Not only do we care about the ROI of your property investment, it’s why we exist. The eight examples given demonstrate that, without question, we have, the experience, the systems, and the values that put the ROI of your property first. This is why we say; “We work, you profit.”