As a landlord or property manager, rental income is your bottom line. Investing in your property is the best way to build this income, and there are little things you can do to translate time and effort into money.
Cut down on your expenses and protect your investment with these 7 tips for raising your income on your rental property.
1. Start with Curb Appeal
Nothing affects your home value quite like curb appeal. The way your home looks from the outside sets tenant expectations and impressions, and they will be quick to judge.
That’s why you need to make all the simple improvements you can to the exterior of your property to keep it looking top-notch. Keep the siding clean and the paint fresh. Paint the front door a fresh, fun color. Add trim or shutters that give your home personality and quality but keep most your colors light and muted to appeal to most potential tenants.
A neat exterior will give tenants the right impression, keeping quality tenants interested and ready to pay more in rent for a higher value property.
2. Improve your Landscaping
Raising your rental income means keeping all aspects of your property looking neat and quality. Along with the exterior of your home, the yard will leave tenants with first impressions that will influence what they are willing to rent from you. You want to give them the right impression.
Mow and trim the lawn. Replace or hedge dying or overgrown flora. Consider adding flower beds and keep all flowers fresh and healthy. Cut back tree branches to allow the best views around your property that you can. Through simple, inexpensive landscaping tricks, your property can look exponentially better.
You want to present your home in its best light, so let all its features shine through effective landscaping. More renters will be interested, and you can keep rental income higher and vacancies lower.
3. Allow Pets with Pet Fees
Expand your base of interested renters even further with this one simple feature. Allowing pets is extremely valuable here in the U.S., where pets are family. You want to give your renters a pet option—but that shouldn’t come free. A pet deposit and pet rent with offset any damages and net you income.
Depending on your property you may want to limit pet types. For example, you may or may not be okay with dogs in an apartment building. However, charging your tenant a pet deposit and pet rent can often more than make up for any potential damages a dog or cat might do to a rental.
These costs will be further offset by the interest and willingness of tenants to pay a little more, keeping your rental occupied.
4. Give your Tenants an Outdoor Space
We’re all looking for an excuse to hang out out-of-doors and away from our computer screens outside of work, so give your tenant a chance to do so.
Unique outdoor living spaces and décor will add value to your property that can translate into higher rental income. Consider features like a patio complete with furniture, paved walkways, adjustable lighting, or even a water feature. Give your tenants every excuse to see your property as an upscale hang-out worth added rent. They’ll want to impress their friends with outdoor diner parties and cookouts. Maybe even include a grill to give your property that extra competitive edge.
Tenants will see an outdoor option as added value for them, meaning added value for you. Boost your rental income by investing outdoors.
5. Renovate the Kitchen and Bathrooms
But don’t stop at outdoor additions. Your kitchen and bathrooms are essential features that will drive up your property values more than anything else. In fact, if your budget is limited, these rooms are where you should put all your focus.
No one wants to spend time on their health essentials in a worn or outdated kitchen or bathroom. You want these rooms to feel clean and modern.
Start with touch-ups and painting, then see what appliances, cabinets, and fixtures you can replace. If you don’t have the budget for all new appliances, at least install some clean, modern fixtures of oil-rubbed brash, brushed nickel, or other good-looking quality materials. A little bit can go a long way to making your property look brand new and worth a higher rental price.
6. Expand your Square Footage
This is the big one and may be out of the question depending on your budget and property. Square footage adds property value and can be a worthwhile investment depending on the housing market in your area.
An extra bedroom or bathroom may be just the thing to attract your ideal tenants at a rent price that will keep your income high.
Start by checking building codes and ordinances, then be sure to match the new room to the rest of the home with excellent interior design.
Even the addition of an unattached garage or accessory dwelling unit can boost property values to new heights and keep your vacancies low.
7. Maximize your Space.
If adding square footage is out of the question, consider adjusting the space you have to maximize your home’s features. Chances are your property isn’t using all its square footage to the maximum potential.
You might consider converting a large master bedroom or family room into two smaller rooms, if you are marketing more towards a college demographic. This can make the property more appealing while boosting the amount you can charge for number of rooms. And don’t forget to explore your options when it comes to basement or attic renovations that can increase living space without necessarily increasing square footage.
Smart Investments Mean Higher Income
Through implementing these simple strategies, you can increase your return on investment to what you want it to be. A beautiful, marketable property will allow you to raise the rent while minimizing vacancies and lost income. Quality attracts quality, so adding useful features to your rental will allow you to sign your dream tenants and maximize your income.
For more tips on raising your rental income, contact 208.properties today.
