Property Management
We can revamp your property investment into a profitable business.
Our Services:
At Golden Prime Property, we offer top-notch property management services to our clients. Our goal is to provide hassle-free management of your properties and ensure that your investment yields the highest return.
With our turnkey service, we handle everything from property marketing and tenant screening to rent collection and maintenance.
One of the key factors to consider when investing in rental property is the return on investment (ROI) from rent. ROI measures the profitability of an investment by determining how much profit is generated as a percentage of the cost of the investment.
To calculate the ROI from rent for a rental property, you can use the following formula:
ROI from rent = (Annual rental income – Operating expenses) / Total cost of investment
The annual rental income is the total amount of money you receive from tenants over the course of a year. This includes the monthly rent payments and any additional income from other sources like parking fees or laundry services.
Operating expenses refer to the costs associated with managing the property. This includes property maintenance, repairs, property management fees, utilities, insurance, property taxes, and any other ongoing expenses.
The total cost of investment includes not only the purchase price of the property but also any additional costs like closing fees, repairs or renovations, and financing costs if applicable.
Once you have these figures, you can plug them into the formula to calculate the ROI from rent. The result will give you a percentage that represents the profitability of your rental property.
For example, if the annual rental income is $30,000 and the operating expenses amount to $10,000, and the total cost of investment is $300,000, the ROI from rent would be:
ROI from rent = ($30,000 - $10,000) / $300,000 = 0.0667 or 6.67%
A good ROI for rental property varies depending on location and market conditions, but typically a ROI above 6% is considered favorable. However, it’s important to keep in mind that ROI is just one factor to consider when evaluating a rental property investment. Other factors such as potential appreciation, location, and rental demand should also be taken into account.
By analyzing the ROI from rent, investors can make informed decisions about the profitability and potential benefits of investing in rental property. It helps them understand the cash flow potential and assess the viability of the investment in achieving their financial goals.
Contact us today to learn more about how our property management services can benefit you and your real estate investments
