3 of The Best Ways To Increase ROIs

What Is Return on Investment in Real Estate?

Return on investment is the ratio between the net operating income and the cost of investment. The ROI formula looks like this:

ROI = Net Operating Income/Cost of Investment x 100

Having your ROI calculated is important because this data allows investors to predict, based on comparables, the profit margin they should realize on their real estate. Who doesn’t want to know how much profit they can expect for the month or even the year?

Let’s cover a few ways to ensure your ROIs are high:

Price By Season

Many hosts overlook the opportunity to adjust their nightly rates by season, no I’m not referring to Spring vs Fall. I mean your specific property’s higher profit and lower profit seasons. This can be determined by doing market research on websites like airdna.com or marketminder.com! This information can be most helpful to you by updating your pricing during your home’s most appealing times, thereby increasing your monthly profit and ROIs.  

Increase average occupancy rates

Optimizing your occupancy rates will skyrocket your ability to increase your ROI, the more people you have booked for your property the better. Increase these rates by adding SEO components to your listing, adding professionally staged photos, and creating a description that allows the potential guest to actually envision themselves staying at your property! 

Professional Cleaning Team 

This tip I would consider a gem. While you could take the role of cleaning on as your own, you would be doing yourself a serious disservice. Having a professional cleaning team can take your guests’ experience to another level and creates a brand around what to expect when staying at your business’ properties. When a guest has an enjoyable stay that enables them to feel safe, at ease, and happy. Thus creating recurring customers that will more than likely refer your home to their friends.

For more information and ways to increase ROIs for your specific business please visit www.iEssentialsProperties.com.