7 Ways To Increase Your Rental Revenue
If you’re wondering how to increase your return on property investment, there’s assuredly something you haven’t tapped into yet. Potential opportunities to increase revenue are often overlooked and rarely maximized. Whether you’re a veteran landlord with multiple properties or a greenhorn still polishing the management practices on your first, below are ideas that any landlord can apply to bring in up to hundreds of extra dollars every month.
Offer Cleaning Services to Increase Revenue
Contracting out cleaning services for your properties can be a consistent and almost effortless way to increase revenue monthly. When writing up a listing for your property or signing a lease with new tenants, offer a cleaning service package. The particulars can change with the desires of the tenant: monthly cleaning services are common, but if a tenant wants biweekly or even weekly cleanings, that means all the more revenue for you. Once you establish a good relationship with a reputable cleaning service, contract the desired work out to them; if you’ve established with a tenant the cleaning services they desire before signing the lease, then include the terms of the service into the contract. If not, you can write up an addendum and have the tenants sign it. Whatever the cleaning service charges you, simply add on top of it anywhere from $20 to $50 dollars for the management service you’re providing and presto! You now have a consistent revenue stream, a clean house, and happy tenants.
Institute Lease Termination Fees
Just because someone has signed a year-long lease doesn’t mean that their fate for the next year is written in stone. With all of life’s curveballs, having a tenant (or tenants) terminate their lease is going to happen sooner or later. Such instances are a headache for everyone involved, especially for the landlord whose livelihood is based on collecting rent. To compensate for potential losses, don’t write up a lease agreement without including termination fees. Establishing an early termination fee of a month’s rent is common. Remember, maintaining a solid revenue stream isn’t just exploring new ways to make money; it’s also making your current practices and revenue streams safer. You don’t want to be stuck with an empty property in the slow winter season, having to settle for lower rent – in New York City, the difference in rent between an apartment leased out in July rather than January is around $140 a month. Don’t miss-out. Understand your market and set a lease termination fee accordingly.
Sell Partial Months if Necessary
Rare is the occasion when a house of tenants will be ready to be completely moved out by the last day of their lease and the new batch of tenants ready to move in day one. This situation might be the stuff of a landlord’s sweetest dreams, but don’t let your property management philosophy reflect such fantasy. Have a contract prepared to add on partial months to residents not ready to move out by the date designated in the original lease. If the new tenants aren’t moving in for a few weeks or, worse, you haven’t found new tenants yet, don’t be stuck with an empty house for no good reason. One of the best ways to increase revenue is to not lose revenue. Communicate with your tenants often when summer comes around so you know everyone’s plan in order to coordinate effectively. Not doing so can leave you out of hundreds of dollars you otherwise would be earning.
Learn the Basics of Maintenance if You Don’t Already
That things break is a rule of life. That things break at the worst possible times is a rule of property management. You should have a few handymen and plumbers on speed dial, but that doesn’t mean you shouldn’t know your way around your own appliances. Learning the fundamentals of maintenance and repair can save you hundreds or even thousands of dollars when a tenant makes a phone call to report a broken appliance. And, when you’re rehabbing a property or preparing for new tenants, take steps to prevent future maintenance issues. You should, of course, respect your own limits – bungling a repair job out of your knowledge can only make the issue worse, putting yourself in an even worse position when it’s time to finally ring up your handyman.
Rent Storage Space
Utilize every aspect of your property. Renting garage space or an unfinished basement can be an excellent way to easily increase revenue. Lease it out for storage space or even a personal workshop, as long as it won’t disturb any neighbors or current tenants. As these spaces aren’t classified as dwelling units, they require less maintenance and attention, which can be great news for a landlord managing multiple properties (you can, however, convert them to an accessory dwelling unit, if you’re so disposed).
Add Furnishings
Furnishing the rooms in your property can increase its value and allow you to increase the rent rate. This strategy isn’t right for every landlord, especially those who rent exclusively to long-term tenants. However, adding furniture opens up possibilities in the medium- and short-term rental markets, which means more opportunities to fill your units during vacancies.
Go for Green Appliances for Long-Term Savings
As the public gets increasingly environmentally conscious, renters are looking for properties conducive to a greener lifestyle. Fitting your property with appliances or furnishings that are safer for the environment can be a great way to attract tenants. Making these changes can also allow you to increase rent, as you can boast that your energy-efficient property will save renters on their utility bills every month. In line with this, note any garden space available, as people are increasingly turning to their personal gardens to grow vegetables and herbs.
Finding ways to increase revenue takes a creative eye and just a bit of effort, but it can pay off in a big way. If you’ve poured money and effort into purchasing, maintaining, and managing a property, why not get the most you can out of it?
For more interesting articles on managing your properties, be sure to subscribe to our blog and Like us on Facebook. And don’t forget to share your thoughts in the comments!
