Being a landlord is not for the faint of heart. It’s a tricky line of work that can include high overhead and plenty of unforeseen expenses.
That’s why you have to be the best at what you do to maintain your rental income, let alone increase it. Here are some real estate tips that will help boost your rental income and make your business more profitable.
1. Figure Out the Average Rent on the Market
The first step in increasing rental income is to go out and find tenants, and sign leases with them. The way to make sure you will charge the right amount of rent is to look at how much similar properties are going for in your neighborhood.
You want to be in a position to charge more if you can, but you don’t necessarily have to. If your property is in a high-demand area, then you might be able to demand an above-average rent for the area.
If your property is in a less desirable area, then the rents will be lower, so you might have to work a little harder to land and maintain solid tenants.
2. Find Out What you Can Fix Up and Make Nice
This is how you will obtain the highest return on your investment. Fix up everything inside your house to look brand-new and attract new tenants.
This can be as simple as painting, replacing light switches, and upgrading thermostats if they are older. There are also ways to improve the rent by making your house more appealing to potential tenants before they move in.
For example, adding wood plank flooring instead of tile flooring to your place will increase the value and make it more comfortable for the tenants that choose to live there. If you want to go a step further, consider other upgrades to your property, such as new appliances or even a swimming pool.
Such improvements can give you an edge over the other properties in the area. Go ahead and do them if you can afford it.
3. Advertise and Offer Incentives
If you are looking to increase your rental income, you should be advertising in every way you can. One of the best methods of promoting property is to put up flyers on doors and in mailboxes.
You can also rent out a billboard or add a website to your property’s listing. These tactics will help your property stand out from others that aren’t advertised as much.
If you are the only place that advertises for a particular type of tenant, those individuals will be more likely to visit your property over others in your neighborhood that have similar rentals.
4. Be a Responsive and Involved Landlord
Stay aware of the needs of your tenants, and respond to their requests as soon as you can. A good landlord will think of creative ways to improve his or her homes and make sure they are rent-ready when a prospective tenant shows up.
If your property is too old or located in an area where you observe few tenants moving in, then it may be time for an overhaul. An updated kitchen with new appliances can go a long way toward making an entire house more attractive for a tenant moving to the area. A simple paint job can also revitalize your property and make it more attractive for prospective renters.
5. Learn About the Changing Trends in Real Estate
Landlord is probably one of the most challenging jobs out there. You have to deal with leases, tenants, repairs, and all kinds of other issues that can pop up whether you’re careful or not.
The best way to be fully prepared for whatever happens in real estate is to consult a Houston property management expert who has invested time into the field. Learning from an expert in this business will help you keep up with what’s new and how you can take advantage of it.
It will also tell you whether you should invest in your property or sell it off so you can move on to another investment opportunity that might be more profitable in the long run.
Summing Up
You can increase your rental income by making use of all these strategies. And there are many other things you can do to create a better investment property and attract further tenants, whether through offering renter incentives, over-the-top marketing campaigns, or being more responsive to the needs of your tenants.
Whichever route you choose, make sure you have a good plan and something that will help you succeed in this business.