Boosting profits on your rental home is one of the easiest ways to make more money. It’s not difficult to implement. In fact, you may read these ideas and wonder why you weren’t doing it all along! Here are 9 of the fastest ways I have found to increase your rental income.
Adding fees to the rent is where you can make a significant amount of extra cash. The classic example is the pet fee. I love animals, but I also know what they can do to a place. That said, if you do not allow for pets, you may detract quality tenants. If they can afford pets, they are probably better off than not. Pet fees are a great compromise. They show that you care about the property enough to set up a fund for potential pet-related damage.
Ask your tenant if they will be moving in with any instruments, no matter how loud or quiet they are in theory. Once you have gathered this information, let the tenant know that heavy instruments like pianos, or loud ones like a drum set require an extra fee. This has become standard practice, pun intended. If music is your tenant’s source of income, then they are technically working from home when they play. You could charge another fee for home offices.
Lease Termination Fee
It is in your interest to disclose a fee for terminating a lease early. Who knows what could happen? Your tenant could win the lottery and set out to travel the world indefinitely. Legally, resources for landlords are limited when a tenant decides to exit the premises. But when you associate a fee with it in plain sight on the lease, you’re lessening the chance of bad surprises. The tenant will abide by what was signed and agreed upon.
Extra Persons Fee
Termination aside, a tenant can break the lease without even meaning to. This happens when a significant other or family member moves in. Your tenant has effectively rendered the rental agreement void by adding an occupant without your consent. How much you charge is up to you. However, you do not want to overcharge and lose your tenant. Most will choose to move and live with who they wish over staying at your property alone.
Instead of a deposit, require a holding fee with the application. By changing the name, you get to hold on to the cash. Applicants who do not pass the background check can be refunded, but those approved who decide to move in elsewhere must forfeit the fee. No one likes to lose money, so people applying to your rental will be more likely to commit to it if there are strings attached.
Find Good Tenants
It is more expensive to replace a tenant than to maintain one for a long time. This is where keeping tenants happy comes in. Not only is it a human decency, it’s a lucrative attitude. The good news is that finding suitable tenants has never been easier. The best rental websites are free or relatively cheap, when you consider landlords used to have to pay for ads to run in the newspaper and magazines.
Do It Yourself
Manage the property yourself instead of paying a manager to do it for you. You’ll also save money if you take care of repairs and maintenance on your time. You don’t have to be an engineer or a plumber to solve most issues. A quick search online or a call to an expert can save you thousands of dollars.
Add In-Unit Laundry
While coin-operated laundry machines maximize profits for you, in-unit laundry attracts the high-quality tenants you are looking for. No one dreams about laundromats. No one. Plus, in-unit laundry machines give you a legitimate reason to increase rent. Providing the hook-ups is a step in the right direction, but try to secure good appliances.
Make Viewings Efficient
When you show the property, do so in batches so you do not waste time or gas driving to and from the location. You should prescreen potential tenants to only meet with serious contenders. You may not want to put in the time, but remember that hiring a property manager costs somewhere along the lines of a full month’s rent.
From adding fees to features like appliances, increasing your rental income is all about taking matters into your own hands. Make it worth a tenant’s while, and they will never want to move!