Being a landlord comes with its fair share of challenges, especially with so much competition these days. One key aspect of being successful as a landlord is knowing how to grow your revenue. Many new landlords are leaving a lot of money on the table and don’t realize it.
It may seem like you can only keep raising the rent to make more money, but the reality is that isn’t your only option. There are ways that you can get the most money possible out of a property which may include raising the rent and other strategies as well. In this article, we will go over several tips to help you get more money from your properties.
1 – Add value
If you want to make sure that you are getting the top end of a possible rent price, then you have to make sure that your property is worth it. There needs to be some value added to the property for people to feel they are getting their money’s worth. A tenant won’t pay high-end rent for a low-end property.
The key is to identify what additions will appeal most to your target tenants. For example, if your properties cater to young professionals, incorporating high-speed internet or a dedicated workspace might be more attractive. On the other hand, if you’re targeting families, adding a play area or safety features could be beneficial.
The right furniture is a great way to add value to a property. If you have a balcony then buying some high-end patio furniture will make the apartment seem luxurious and worth more money.
2 – Reduce vacancy rates
A profit killer is an empty property. There are sometimes gaps when your property is not rented and this means that you’re not earning during that period. Of course, the bills don’t stop when you don’t have tenants so it’s in your best interest to keep the vacancy rate as low as possible.
Maintaining good relationships with existing tenants will encourage lease renewals. Happy tenants are more likely to stay longer, reducing the frequency of turnovers. Tenants appreciate a thoughtful landlord so take care of problems quickly.
Have a process so when your tenants move out, you are able to get the property rented out as quickly as possible. Get it cleaned and repaired right away. Also, have a marketing strategy that starts up before the tenant moves out to attract the next ones.
3 – Add revenue streams
Rent isn’t the only revenue source for a property. You can have your tenants pay for other services that help you make more money. For instance, if there is parking available for the property then you can charge extra for the space.
Laundry is another great revenue source. It offers convenience for your tenants so they are happy to pay extra for it. If you have multiple units in the building then a few washing machines and dryers can bring in some substantial extra revenue.
