by Optivo GroupHow to Increase your Rental Multiunit Property Income
You have just found yourself yet another property to add to your portfolio, congrats! But you noticed that some of your properties are not making as much as others or maybe some of your friend’s properties when you compare. Are you maximizing your property’s potential? Are you maxing out your ROI? A rental property business can be profitable if you can manage it properly. If you have a full-time job or other priorities, though, it can be difficult to pour all your focus into your properties. We are going to explore a few ways you can increase your rental property income because let’s be honest, there’s always room for improvement.
Increase the Rent:
This first one may seem obvious, but many rental property owners struggle with it. Some people feel strange about increasing the rent on the basis that it seems ill-mannered and unfair to the tenant. Others have no idea what would be considered fair market rates to charge tenants. Owners of rental properties who provide a good place to live shouldn’t shy away from steady increases in rent. Many rental property owners fear that residents will leave if they raise the rent, but if the increases are reasonable, residents may well find that the costs of moving outweigh the costs of staying. Of course, property owners and landlords should be aware of local laws that regulate how frequently or by how much rents can be increased. But raising rent is the most obvious and direct way to maximize cash flow.
Upgrade the Property:
We’ve all had to rent a place to live at one point in our lives. Put yourself in the tenant’s shoes. When looking for an apartment or a home to rent, what is the very first thing you notice about a property? Landscaping. Imagine arriving at a location where the trees and shrubs are unkempt, there is dirt caked on the sidewalks, and the grass is more brown than it is green. Is this somewhere you’d want to live? I think not and that’s exactly what prospective tenants are thinking too. If you think about it, you could be gaining or losing a new tenant within 15 seconds of them getting out of their car to view the unit. Of course, you want to make a good impression in these precious seconds so that you can make some money. To do this, consider investing in some landscaping to beautify the front of the property and make it seem more welcoming. Never underestimate the importance of curb appeal.
Keep Up with Maintenance:
While it may seem counterintuitive to spend money on maintenance, making sure your property stays in good shape can maximize profits from rentals. Maintenance is an unavoidable part of property care. You will need to carry out all sorts of maintenance work to ensure your property remains in excellent condition. This will allow you to attract more potential tenants. Apart from that, preventive maintenance can earn you significant profits in the long-term by helping you save on future repairs. To achieve this, you must perform thorough inspections occasionally. See if anything needs a touch-up or a fresh coat of paint. Replace older appliances that are set to break down any time soon. Check your flooring every few years to see if it still holds up well.
(Definitely) Allow Pets:
The word definitely is in parenthesis because this can be iffy for many rental property owners (I am also a dog lover myself and strongly advocate for this). However, tenants, especially younger ones, value their pets and treat them like family. To some potential tenants, a no pets policy is even a dealbreaker. Everyone hears horror stories about dogs and cats ruining the interiors of units. But, hear me out on this one. Allowing pets at your rental property might seem risky, but it’s an excellent way to increase your rental property income. Think about it this way: if you require a special pet deposit at the beginning of the lease, this should cover any potential damage the pets might cause. Also, you can charge an extra pet fee every month that increases your income compared to a tenant without any pets. To alleviate any concerns about major damage, you can look into different pet breeds and have a list of species that aren’t allowed based on size or temperament.
Add Extra Amenities and Services:
Focus on laundry here. One of the most boring and daunting tasks on anyone’s list has to be laundry. So when your tenants have to take their laundry to a laundromat, that takes extra time and effort, requires travel, and is inconvenient. If your property has laundry facilities on-premise, people will be much more drawn to your property than ones that don’t. If your property does not have laundry on-site, you should seriously consider adding this amenity immediately. Whether they’re coin-operated or require the usage of a special funds card, you will quickly make back the money you spent on the machines in no time. From here you will end up profiting each month.
Introduce Additional Fees:
A few small additional monthly fees will really add up in the end. You may consider charging extra for a designated parking space or a garage. Perhaps you should charge a lease termination fee. While many tenants fulfill their lease requirements, there are situations where a lease will need to be broken. This way it won’t be a total loss on your end if and when the tenant leaves.
Avoid Vacancies and Screen Everyone
While this may seem like it is easier said than done, avoiding vacancies is one of the best ways to maximize profits from rental properties. Technology has changed the way people hunt for places to live, and landlords find it easier to land tenants than before. Additionally, with the rental market growing every year, you are almost guaranteed occupancy. Show your property to potential applicants as often as you can. Of course, it goes without saying that you should screen your tenants first. Run a credit report and ask for proof of income if possible. Consider contacting their previous landlords. Overall, work on getting as much information as you can. Why is this so important? If you skip these steps and eventually find yourself needing to evict them, this can cost you thousands of dollars.
As you can see, there are many ways to increase revenue from rental properties. You just need to know where to start. Go through these points and see which option works best for you. Then, when you are ready, get in touch with a property management company that can do all of this for you and so much more![/vc_column_text][/vc_column][/vc_row]