Increase Revenue eBook
Download REI Grove’s Increase Revenue eBook to learn how landlords can grow rental income, reduce expenses, improve cash flow, add revenue streams, charge appropriate fees, raise rent strategically, and minimize turnover and vacancy.
Key Takeaways
- Increasing rental revenue means more than simply raising rent.
- Landlords can increase income through added revenue streams, tenant fees, and justified rent increases.
- Landlords can reduce costs by lowering expenses, reducing utility costs, minimizing turnover, and decreasing vacancy.
- REI Grove’s eBook covers both strategies — increasing income and reducing costs — in detail.
Increase Revenue eBook
If you’re a rental property investor, you understand the importance of generating wealth and profit from your units. After all, profiting from your rental properties is what allows you to run your business and make a living. But what can you do to increase your earnings as a landlord?
To increase your rental income, you must change how you run your business — lowering your costs and/or increasing your income. This process involves more than simply lowering your mortgage or upping rent for your tenants, and we have a wide variety of tips, tricks, and methods to help you get started. That’s why we designed our Increase Revenue eBook with tips for increasing profits when investing in rental property for beginners.
Let’s take a look at the basics of rental revenue and methods of bringing in more.
In this article
- Learn what rental revenue is
- Understand how cash flow affects rental profitability
- Review ways to increase rental income
- Learn how to reduce rental property costs
- Download REI Grove’s Increase Revenue eBook for landlords
Increase Revenue eBook at a Glance
| eBook Section | What It Covers | Why It Matters |
|---|---|---|
| Part 1: Increase Revenue | Methods of increasing income, added revenue streams, tenant fees, and strategies for raising rent. | Helps landlords identify ways to earn more from their properties. |
| Part 2: Reduce Costs | Methods of decreasing costs, reducing expenses, lowering utility and financial costs, and minimizing turnover and vacancy. | Helps landlords increase profit by spending less. |
What is Rental Revenue?
Before you can begin increasing your rental income, you must first learn the basics of what rental income is. According to the IRS, rental income is “any payment you receive for the use or occupation of property.” This means that recurring fees you charge for rent, pet rent, or utilities, and even one-time fees such as a security deposit, only if you don’t plan to return the money to the tenant, or a lease cancellation fee count as income for your property.
Much of this revenue is often used to pay for other expenses like maintenance or repairs, but with a positive cash flow, it’s possible to increase your profits and expand your business.
Cash Flow
An important aspect of understanding how to increase your business’ rental revenue is learning about your monthly cash flow. Cash flow is equal to your income minus your expenses, leaving you with a profit, or positive cash flow, or a loss, or negative cash flow, for the month or year.
Calculating your cash flow can provide insight into whether the income you collect is enough to cover the expenses you’ll encounter in your business such as repairs, renovations, and other maintenance.
If you have a negative cash flow, you’ll need to increase your income and decrease your costs. Below, we’ll discuss different methods and tactics to help you get started and achieve a positive cash flow.
What Does the Increase Revenue eBook Cover?
REI Grove’s Increase Revenue eBook gives landlords a deeper look at how to increase rental profits by growing income and reducing costs. The eBook is organized into two major parts: increasing revenue and reducing costs.
This eBook includes:
- Rental revenue strategies
- Added revenue streams
- Cleaning services
- Storage space
- Satellite TV
Part 1: Increase Revenue
The first part of the eBook focuses on ways landlords can increase income from rental properties. Increasing revenue does not have to mean relying only on higher rent. Landlords can also create new sources of income, charge fair and legal fees, and improve their properties so rent increases are easier to justify.
This part includes:
- Add revenue streams
- Charge fees
- Increase rent price
Methods of Increasing Rental Income
A straightforward way to increase profits through rental income is to earn more money. This can be done through many avenues, but we’ve chosen three broad paths to increase rental revenue: adding revenue streams, charging fees, and increasing rent prices.
One way to increase your rental revenue is to add revenue streams. There are many ways to diversify your forms of income, so you don’t have to box yourself in by only collecting rent each month. You could install coin-operated laundry machines or a vending machine in your building, offer cleaning services or satellite TV in your units for a price, or rent out storage spaces. While these revenue streams require an initial investment, they’ll quickly pay themselves off and you’ll be bringing in extra cash.
Another method to consider is charging additional fees for your tenants. It’s important to be an ethical landlord and only charge fair and just fees for your tenants, but there are plenty of opportunities where you can rightfully charge tenants for services. Think fees for pet rent, late payments, tenant applications, or even landscaping.
Lastly, many landlords increase rental income by increasing the price of rent. Of course, to still attract tenants at a higher rent price, you must have good reason to increase it before sending a rent increase notice. There are two steps you should take before you raise rent: researching the market and improving your existing properties.
When researching the market around you, be sure to consider what each unique unit has to offer and what is affecting the price, like location, amenities, or size. Then compare to your units — do you need to repaint, install smart thermostats, use upgraded locks, or refurnish the space? Implement some of these improvements to increase your property’s fair market value and justify a fair rent increase in your units. Lastly, be aware that rent control laws in your area may limit how raising rent works in your state.
Added Revenue Streams for Landlords
Added revenue streams allow landlords to earn money from services, amenities, or property features beyond base rent. These options may not fit every rental business, but they can give landlords more ways to increase income.
Examples from the eBook include:
- Cleaning services
- Storage space
- Satellite TV
- Airbnb subletting with tenant permission
- Corporate housing
- Spare land
Before adding a revenue stream, landlords should consider upfront cost, tenant demand, local laws, insurance, maintenance, liability, lease language, and whether the service actually fits the property.
Tenant Fees Landlords May Consider
Fees can also increase revenue when they are fair, clearly disclosed, legally allowed, and tied to actual lease terms or services. Landlords should avoid surprise fees or excessive charges that may create disputes or violate local law.
Examples from the eBook include:
- Pet fees and pet rent
- Late payment fees
- Applicant fees
- Lease termination fees
Fees should be stated clearly in the lease or another written agreement, and landlords should confirm that each fee complies with state and local law.
Increasing Rent Price
Increasing rent is often the most obvious way to increase revenue, but landlords should approach it carefully. A rent increase should be supported by market data, property value, tenant demand, and the condition of the unit.
Before raising rent, landlords should review:
- Local comparable rentals
- Property location
- Unit size
- Amenities
- Property condition
Rent increases may be easier to justify when landlords improve the property. This may include repainting, updating fixtures, installing smart thermostats, adding upgraded locks, refurnishing the space, improving curb appeal, or investing in green technology.
Part 2: Reduce Costs
The second part of the eBook focuses on reducing expenses. Landlords can improve profit not only by making more money, but also by lowering the costs required to run the business.
This part includes:
- Reduce expenses
- Lower utilities costs
- Lower financial expenses
- Minimize turnover
- Decrease vacancy
Methods of Decreasing Costs
Though making more money is always a fast way to increase your earnings, another way of upping your profits as a real estate investor is to decrease the costs needed to run your business. There are several key methods to do this: reducing expenses, lowering utilities costs, and minimizing turnover and vacancies.
The first way to decrease costs is to reduce expenses. The easiest way to do this is by cutting third parties out of your business processes when possible. It’s more work for you as a landlord, but by managing your own properties, using property management software, and lowering costs of maintenance by helping yourself, you eliminate the need to pay other people for their services.
Next, consider lowering utility costs. There are countless ways to do this, but to start, consider using green appliances that save on energy and electricity over the course of the year. You can also change old lightbulbs for energy-efficient ones, change air filters on a set schedule, or even implement landscaping with more shade that can keep your units from overheating and needing more air conditioning.
Lastly, it’s always best to minimize turnovers and vacancies when possible. By creating a space where tenants feel safe and comfortable, you keep tenants in your units for longer. Finding quality tenants, updating your apartments, and collecting rent electronically are great ways to incentivize renters to renew their leases for your units.
If you do have vacancies, the best course of action is to be proactive and heavily advertise your units. By making your listing accessible, more people will find and apply for your property. You can even offer incentives such as selling partial months to renters who are unable to move in on the first of the month.
Of course, there are some expenses you simply can't eliminate or reduce, like property taxes and some tenant turnover. However, by limiting them where you can, you can make better use of the market rent you receive and have fewer expenses to cover yourself.
Reducing Rental Property Expenses
Reducing expenses starts with reviewing where money is going. Some landlords may be able to save by managing their own property, switching to more affordable property management software, reducing maintenance costs, or handling certain tasks internally.
Cost reduction strategies may include:
- Managing your own property
- Choosing the right property management software
- Minimizing maintenance costs
- Performing simple repairs yourself, when appropriate
- Creating preventative maintenance schedules
- Comparing contractor pricing
- Reviewing recurring subscriptions or service contracts
Landlords should be realistic about which tasks they can handle safely and effectively. Saving money upfront does not always help if poor maintenance creates larger repair costs later.
Lowering Utilities Costs
Utility costs can reduce rental profitability, especially when landlords pay for all or part of utilities. Energy-efficient improvements may reduce recurring costs and make the property more appealing to renters.
Utility-saving strategies may include:
- Using green appliances
- Insulating windows
- Changing air filters
- Switching lightbulbs
Even small changes can support lower monthly expenses over time.
Lowering Financial Expenses
Some costs are financial rather than operational. Landlords may be able to reduce these costs by reviewing tax opportunities, challenging inaccurate property tax assessments, or refinancing when it makes financial sense.
Financial cost strategies may include:
- Taking advantage of tax breaks
- Challenging property tax assessments
- Refinancing loans
- Reviewing insurance costs
- Tracking deductions carefully
- Working with tax or financial professionals
Because tax, lending, and refinancing decisions can have long-term consequences, landlords should seek professional guidance before making major financial changes.
Minimizing Turnover and Vacancy
Tenant turnover and vacancy can be major profit drains. When a tenant moves out, landlords may lose rent while paying for cleaning, repairs, advertising, showings, screening, and move-in preparation.
Landlords can reduce turnover by:
- Finding good tenants
- Upgrading the property
- Offering discounts or incentives where appropriate
- Collecting rent electronically
Landlords can decrease vacancy by:
- Being prepared and proactive
- Advertising early
- Maximizing marketing efforts
- Creating strong listings
Keeping units occupied with reliable tenants is one of the most direct ways to protect rental revenue.
How Can This eBook Benefit Landlords?
This eBook gives landlords a practical overview of ways to increase rental profit from both sides of the equation: earning more and spending less. Instead of focusing only on rent increases, landlords can explore added revenue streams, tenant fees, property improvements, utility savings, expense reduction, and tenant retention strategies.
This can be especially useful for:
- New landlords learning how rental income works
- Investors trying to improve cash flow
- Landlords looking for new revenue streams
- Rental owners preparing for rent increases
How REI Grove Can Help Landlords Increase Revenue
REI Grove helps landlords organize and manage key parts of their rental business, including rent collection, tenant communication, lease documents, maintenance, and financial records. A more organized system can make it easier to track income, monitor expenses, reduce missed payments, and identify opportunities to improve cash flow.
For landlords trying to increase revenue, better organization can make it easier to see where money is coming in, where money is going out, and what changes may improve profitability.
Conclusion
Increasing the revenue from your rental business takes time, effort, and care but yields results that increase the value of your properties. All you have to do is choose the methods that work best for you and stick with them. By putting in a little bit of commitment and energy, you can grow your business and enjoy an increase in earnings in no time.
For more insight on the specific steps and tools you should utilize when looking to bring in more rental revenue, download REI Grove’s Increase Revenue eBook above.
FAQs
How do landlords make more money?
Landlords can make more money by increasing rent, adding revenue streams, charging lawful fees, reducing expenses, and minimizing vacancy.
What is rental income?
Rental income is generally money received for the use or occupation of rental property, including rent and certain fees.
What is cash flow in real estate?
Cash flow is income minus expenses. Positive cash flow means the property earns more than it costs to operate.
How can I increase rental income?
You can increase rental income by adding services or amenities, improving the property, reviewing market rent, and reducing unpaid or missed charges.
What improvements increase rent?
Improvements that may support higher rent include paint, appliances, smart thermostats, upgraded locks, and improved curb appeal.
How can landlords reduce utility costs?
You can reduce utility costs by using energy-efficient appliances, insulating windows, changing filters, updating bulbs, and adjusting water heater settings.