There is a lot that goes into running a successful rental income business. Most rental property owners know the basics of real estate management. You understand the importance of screening tenants, setting competitive rent prices, handling maintenance, etc.
If you are only doing the basics, you are missing a lot of potential for the business. You might profit, but there’s so much more to gain.
What are some ways to maximize your rental property business? You can read on to learn about some of the top strategies.
Get More from Your Rental Income Business
Invest in Renovations and Upgrades
Increasing the value of your units is one way to increase the revenue you can collect. You can make your rental units more attractive to prospective tenants with the right renovations. Better kitchens and bathrooms will attract tenants willing to pay higher rents. Tech upgrades like home automation features are also popular. Consider renovating the building and grounds to make the community more attractive.
Consider Popular Amenities
Adding amenities can be another way to attract more tenants and increase revenues. Better parking and access control features are a good idea. Community spaces can also be appealing amenities. A courtyard or small park could be attractive if the property has the space. Features like community pools and fitness centers also draw tenants willing to pay more.
Additional Revenue Sources
Property owners should look for more ways to generate revenue from a property. For example, you could add vending machines to some common spaces. Management could also offer various services to tenants. Services like onsite storage and furniture rentals could be beneficial to tenants while providing additional revenue streams.
Improve Lease Renewal Efforts
Renewing a lease for an existing tenant is usually better than finding new tenants. You keep the tenant in the unit and avoid the costs associated with turnover and vacancy. This fact makes lease renewal one of the most critical factors for maximizing the value of a property. One point is to be thoughtful about rent increases. You can increase the rent, but you don’t want to push out good tenants. You should also start the conversation early. Send a notice two or three months before renewal instead of waiting until the last month.
Update Your Listings
Marketing is one of the keys to real estate management. Even if a property has good lease renewal numbers, you will need to fill vacant units. One way to attract more prospective tenants is to have good listings. That means you should occasionally review and update the listings. Take new photos of a staged unit to make the best impression. Write a strong description that sells life in the rental community. Make sure to include all amenities and features in the description.
