13 Ways to Grow Property Revenue
With government tax changes, eviction laws, and unemployment issues, landlords have a variety of revenue threats to deal with in 2023.
Certainly, raising tenant’s rent price isn’t the only method to grow rent yields, yet too many landlords resist raising their house or apartment rents. With inflation and rising financing costs, not raising rents amounts to a rent discount.
The best approach to rent yield increases is to add value to the tenant experience. Most of the thought on the raise the rent topic evolves around raising it without added value or renovating. Instead of focusing only on raising rent prices, you may want to incorporate a multipronged approach to raise ROI.
Below you’ll find creative ideas to grow revenue, foster higher rent prices, adding value, and lowering costs. The more the merrier!
Raising rents can be good for both tenants and landlords. You will need growing revenue to cover inflationary costs, repair and maintenance costs, higher taxes, higher financing fees and to make improvements to improve the tenant experience.
Yet, tenants need a good rental lifestyle experience so be prepared to spend a little to get much better rent prices.
A recent survey on tenant attitudes showed 63% of tenants are okay about a rent increase and are willing to pay a higher rent price if certain amenities or services are offered.
How to Raise Your Revenue
Get creative with a mix of services and fees:
- turn some units into corporate housing (premium because of large employer’s need for business/staff rentals)
- free satellite tv (providers offer discounts allowing you to earn $20 to $40 per month per unit; StarLink Satellite is an interesting/unique service that would intrigue renters)
- lease out an advertising billboard on the roof or on the roadway
- offer sponsorships of your website and Facebook page
- charge late fees automatically based on lease terms
- add automated digital based laundry
- pet fees per size of pet (keeps big pets out)
- extra occupant (long term guest becomes source of revenue who uses laundry room, satellite TV, and other services you want to sell)
- extra parking spaces
- rent application and tenant screening fees
- early lease termination fee (let them out but take a good sized fee for it, and ensure your vacancy advertising system is working well)
- lease transfer fee + tenant screening fee (guest wants to take over lease, check them out and approve for fees)
- storage lockers (basement provides storage for bikes and other equipment)
- add amenities, high tech home automation, keyless entry, security, landscaping, exercise rooms for extra fees
- renovate elements of the house to raise resale value and better justify your rent increase to everyone
- add new appliances, instant water heater, new energy efficient windows to repel heat/cold –they’ll appreciate increased comfort
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