Everyone wants to make more money in rental properties, but so many landlords miss out on opportunities to increase their monthly revenues. If you follow some of the tips offered below, you can boost your income and ensure your long-term financial health.
Also, remember to conduct rent research in your area using a rent estimate tool to have the best idea of what you should charge your tenants.
Raise Your Rents
Are you having trouble getting enough cash flow from your current rents? Consider performing a rent analysis and increasing your rents. Rather than dealing with all the costs of property ownership on your own, remember to put some of these costs on your apartment renters.
Some property owners are concerned about boosting rent because they think they’ll lose their renters. If this concerns you, you can implement a few policies to get more money out of tenants.
First, include a rent increase clause in your lease agreement. You can build an automatic rent increase into your business each year, but you should base that increase on your rental analysis of apartments in your in the East Bay area.
Second, encourage people to have pets, but make sure you charge a pet cleanup fee, plus an additional monthly fee for each animal. Most tenants have pets of some kind, so this can be a significant increase in your cash flow.
Manage Your Properties
It’s tempting to have a property management company run your buildings. This allows you to have a hands-off approach to your rentals, but it costs you. Expect to pay up to 20% each month of your collected rent to a property manager.
Try to take the time to handle the day-to-day needs of your properties, from qualifying potential tenants to handling repairs.
Add Vending Machines And Laundry Services
A great way to increase your revenues is to add convenient amenities for your tenants.
For starters, add some food and drink vending machines, so your tenants stay at your facility for some of their snack and soda needs. The best vending machines can make up to $400 per month.
You also can add washers and dryers in an extra room to drive revenues higher. In addition, many tenants love to have laundry facilities at the property for convenience.
Provide More Storage
Many people who live in apartments need more storage space. Remember that people have an attachment to their belongings, even if they aren’t worth anything, and won’t use them.
You can take advantage of that hoarder instinct by charging a monthly fee for an extra storage room or locker. One benefit of this additional cash flow is that you make money from units containing objects, not people. If your tenant doesn’t pay the fee for the storage unit, it’s easier to get rid of a kitchen table and recliner than a renter.
One of the most complex parts of owning rental property is filling a vacancy with a quality tenant. Therefore, it’s essential to do background and credit checks on every person you consider for that unit.
Don’t lower your standards if the apartment has been vacant for a month; it’s far worse to get a nightmare tenant in a unit than to have it sit empty until you can find a great renter.
Many people dream of making a lot of money and retiring early with rental real estate. But there are many mistakes you can make that will cause you to lose money every month. Fortunately, there are many ways to boost your monthly income so you can get as much monthly cash flow as possible.