Did you know that 91 of the 100 largest cities in the US recorded a high rent growth in the past year? The growth is attributed to the strategies most landlords are taking to maximize their rental income. You can also reap profits from your rental property once you start treating it like a business.
A profitable rental property can be a great source of passive income and offer you great value on your cash. It also allows you to broaden your investment portfolio and maximize your gross income. Making your rental property appealing to potential tenants may help you enjoy these benefits.
Conducting some market research and screening your tenants thoroughly can help you maximize your rental income. You should also give the property a facelift and get a professional listing as discussed in this guide:
Keep the Rental Property in Good Condition
Though it costs money to take good care of your rental property, this move may help attract new tenants. Carry out preventative maintenance on the property to keep it in great shape.
The property improvements may involve changing the air filters often and replacing old appliances and flooring. It may also involve fixing leaks and installing utilities such as laundry facilities and dishwashers.
Your tenants are likely to keep their houses in good condition as they found them. There are less likely to encounter injuries since you’ll have eliminated any potential dangers.
Painting the interior parts of the rooms with a vibrant color like white may make them feel larger and more welcoming. You may add a fresh coat of paint depending on a tenant’s preferences before moving into the property.
Update Your Rent Price
Research the rent prices of units that are similar to yours in your neighborhood. You should also price accordingly for your prices to reflect the rental market and be attractive to tenants. Update the rent every time you install new utilities and appliances and renovate the property.
Capitalize on peak rental seasons like the summer months if you have a vacation rental. Rent prices tend to increase during peak seasons due to the high demand for vacation rentals.
Only raise the rent depending on the real estate rental market in your area. You should also charge utilities aside from the rent to maximize your rental income. The utilities may include sewage, gas, water, and electricity.
Lower Turnover Costs to Maximize Income
When a tenant leaves your property, it will cost you money to revamp the property and find another qualified tenant. You may incur turnover costs on repair work and advertising. Putting these expenses under control can help you maximize your rental income.
You may lower the turnover costs by offering excellent customer service. Hire a good property manager that can treat your tenants with professionalism and respect. Your tenants expect you to value their concerns and deal with their urgent matters.
Establishing a great tenant-landlord relationship may compel your tenants to extend their stay. You will no longer have to lose income when a unit remains vacant.
Get a Professional Listing for Your Property
Hire a photographer to take appealing images of your rental property. Stage the rooms with fresh plants or flowers and have the photos taken in daylight for increased appeal.
Choose a reliable rental listing platform to reach a wider audience and increase tenant leads. You should also use a catchy title to inform the tenants about the standout features of your property. Remember to add an appealing description regarding the property’s availability, utilities, location, fees, and contact information.
Tell your potential tenants upfront about what they should expect in the screening process. Set the rent price depending on the season, neighborhood, current rental market, and renovations on the property. The final step is to add quality photos to the listing, activate it, and share it on your social media pages.
Screen Your Potential Tenants
Stick to a thorough screening process to find tenants who pay rent on time and take care of the property. You may screen tenants during property showings or through a rental application form. Ask them for their credit reports and conduct background checks to determine whether they can raise the rent.
You may contact the potential tenant’s employer to determine their income. Contacting their previous landlords will help you learn more about their behavior.
Offer trustworthy tenants incentives that allow them to renew their lease. You may also offer to upgrade or replace an item in their units every time they renew their leases.
Have a Detailed, Well-Written Lease
The lease agreement will act as a binding contract between you and your tenants. It explains the basic clauses and terms both of you should follow during the rental period. You may also specify rules regarding parking, law maintenance, and property alterations in the lease.
Your lease agreement may dictate whether tenants can sublet their units or use it for other purposes. It may cover circumstances when late fees, holding fees, and lease termination fees will be charged.
Get a Full Coverage Insurance
A landlord insurance policy will give you coverage on potential legal battles and damages on your property. Your basic homeowner’s insurance policy won’t cover liability costs if you are a landlord. Either way, discuss the coverage options with an insurance expert before signing up for any.
Approach local realtors for advice on insurance coverages that favor landlords. The landlord insurance will cover your rental property and other structures on it from both natural and man-made disasters. Take time to peruse the terms and conditions on the policy before signing up.
Need Expert Property Management Help?
Your property’s rental income value may increase depending on how you make it appealing to potential tenants. You can maximize this income with the strategies discussed in this guide for continued profitability. Always keep records of the income flow and tenants for easier monitoring.
You can count on us for best-in-class property management advice. We are among the leading property management firms in Memphis that can help you make informed property decisions. Contact us today for any questions or clarification on what we do.