As a real estate investor, one of the clear goals is to rent your investment properties for as much money as sensibly possible. Of course, there are some noticeable ways to increase the rental income of your property, such as modernizing the kitchen and bathrooms or adding a bedroom. But here are other ways you can maximize your Post property for rent income without spending a ton of money.
Tips to get the maximum rental property income
- Do some market investigation and price accordingly: One of the prime rookie mistakes we made when we started investing in real estate was pricing my rental properties too low. The actual thought process was this we should rather rent the property as fast as possible, and pricing it more competitively will give me a pool of possible tenants to choose from.
- Screen your tenants carefully: Before you decide to rent to a tenant, spend an hour or so communicating with their previous landlords and other references, running a credit report, and then doing your due diligence. Here’s why: Comprising the loss of rent for a few months, a removal costs the average landlord thousands of dollars in legal fees, repair costs, cleaning bills, and more.
- Hire a (good) property manager: This might seem counterintuitive since a property manager will normally take 10% of your rental income. Precisely, consider the preceding two points. A good property manager will recognize precisely how much rent to ask for your property and this benefit alone can pay for the cost of the property manager. And second, a property manager can do the occupant screening process on your behalf, thereby cutting down on expulsions and late rent situations.
- Consider letting pets: It can be very problematic to find a nice place to live if you’re a renter with pets. As a consequence, being eager to accept pets as a landlord can increase your pricing power. We can suggest a two-pronged method to letting pets from a financial point of view. Think of it this way: If you permit a tenant to keep two cats, the payment should offset any additional costs to you, and you’ll enhancement your rental income per year.
- Consider shorter-term rentals: It does not mean that you should turn your long-term rental properties into holiday rentals or list them on Airbnb. But seeing lease terms shorter than a year can give you valuing power, as few landlords do. For instance, a six-month lease can bring it as much as 10% more monthly rental income than a yearly lease, and if you’re eager to entertain a month-to-month lease condition, you could increase your rental income even further.
- Get creative: This is by no means a thorough list, and there are amply of other ways you might be able to increase your property’s income potential by showcasing it on Property Advertisement. For instance, if your property is in an urban area, adding security features like an alarm system or a doorbell camera could add important value. By being thoughtful of what your target group of tenants might want and carrying it for them, you might be amazed at how much you can lift your property’s rental income.