4 Easy Ways to Make More From Your Rental Property
Owning rental property can be lucrative. When done right, it allows you to earn a steady income and build equity at the same time.
But the numbers have to add up. Not every rental investment is a winner. And if you struggle with vacancies, late payments, or a lot of tenant turnover, you could actually lose money.
That’s why in this article we’ll go over different strategies to boost your rental income, no matter what your situation.
Let’s get started!
1. Be strict about late fees
It’s good to get to know your tenants and even become friends. But be careful not to let them take advantage of you by letting them not pay rent on time or at all.
Remember, you are running a business. If a tenant fails to pay rent on time, be strict about charging them late fees according to their lease contract.
This will help boost your rental income in at least one of two ways:
- It will add some extra income from late fees.
- It will help deter renters from getting behind on their regular payments.
Either way, you’re going to see your rental income increase. All you have to do is stick to your lease agreement terms.
2. Hire a property manager
This may sound counterintuitive, but hiring a property manager can actually help you boost rental income.
A skilled property manager can help you manage every part of your rental business: marketing, tenant screening, lease agreements, rent collection, maintenance, repairs, evictions, and more.
All of that takes up a lot of your time and energy. By outsourcing to a property manager, you can focus your time on the higher-level business operations like scaling and investing.
Plus, most property managers are equipped with technology, systems, and contractor relationships that will streamline your rental business in ways you couldn’t on your own. They’ll help lower your turnover rate, maximize your occupancy rate, and make sure your property is always well taken care of.
Most property managers charge anywhere between 8% to 12% of the monthly rent per managed unit. But when you consider all that you get in return, it’s well worth the cost.
3. Charge pet rent
Many landlords forbid pets on their property because they don’t want to deal with the potential damage and smell. But for others, pets can be an opportunity in disguise. Here’s how:
You can charge pet rent on top of regular rent for tenants that want to bring their animals. A reasonable rate is something like $20 per month, which may not seem like a lot but can really add up over time (It’s another $240 per year per pet).
Plus, allowing pets gives you a larger pool of tenant applicants. 68% of US households own a pet and 76% of millennials do. Pet owners also tend to be responsible tenants because caring for a pet takes a lot of time and attention. So there’s a good chance they’ll treat your property with respect as well.
4. Add more amenities
Finally, you can always raise the rent by adding more amenities to your property.
For example, you could add a community gym, a pool or ping pong table, an event center, high-speed internet, and more—all of which add value to your property.
Some amenities like an onsite laundromat or a vending machine even allow you to charge extra. This way, you can make some extra cash on the side.
Get creative. The amenities you add don’t have to be big projects. First ask your tenants what amenities they would most value, then see if you can satisfy their wishes.
Adding it all up
There are many easy ways to increase your rental income, and this isn’t even an exhaustive list. Evaluate your rental properties and see which strategy makes the most sense for your business.
Once you’ve implemented one tactic, try another. Eventually, you could be making a lot more from your rental property than you thought possible. It all starts with taking a simple action today!
