13 Ways to Grow Property Revenue
With government tax changes, eviction laws, and unemployment issues, landlords have a lot to deal with.
If you’re so busy that you haven’t reviewed your rent yields and painstakingly covered the reasons for lower performance, it will hurt your business.
Sometimes, taking a simple roll call of the challenges you face and collecting the best ways to grow is the thing to do. The best approach to rent yield increases is to add value to the tenant experience. Your tenant experience strategy helps you increase intent and loyalty, while allowing you to increase the rent price.
Most Landlords don’t push the envelope on higher rents. Some don’t raise rent at all. Yet, raising rents can be good for both tenants and landlords. You often need growing revenue to cover inflationary costs, repair and maintenance costs, higher financing fees and to make improvements to improve the tenant experience.
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 the Rent Price
Get creative with a mix of services and fees:
- turn some units into corporate housing (premium because of employer’s need for rental)
- satellite tv (providers offer discounts allowing you to earn $20 to $40 per month per unit)
- lease 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, security, landscaping, exercise rooms for extra fees
- renovate elements of the house to raise resale value and justify your rent increase
- add new appliances, instant water heater, new energy efficient windows to repel heat/cold –they’ll appreciate increased comfort
13 Tactics to Acquire a Better Tenant
The quality of the tenant is a key to ensuring revenue, so review how you attract tenants. Good tenants will translate to rent price increases as long as you generate a good tenant experience.
- take stock of competing apartments in your building or neighborhoods, your rental “comps” to understand their strengths/weaknesses and how to position your unit against them.
- promote the quality of the neighborhood in your advertisements because the neighborhood is important to renters
- leverage your website and Facebook page to advertise your value proposition to tenants. This attracts stable renters who might move if they found a building/house that possessed desired benefits. They will pay more those benefits.
- talk about how in demand this neighborhood and building are
- convenience factors such as coffee shops, schools, and retail stores nearby
- take plenty of awesome photos – go first class all the way and emphasize attractive features
- word your promotion and landing pages to appeal to your intended audience. But don’t go overboard which is a red signal to renters. Instead be sincere, transparent, and generous in information so they know they’re not wasting their time
- after establishing a base price, gear the full rent to the person’s credit rating
- use ManageCasa’s new marketing suite to create massive visibility of your properties, particularly online with a website and Facebook presence
- improve your units/properties (ensuite laundry, appliances, fixtures, free wifi, and add tenants apps), because you’re negotiating price based on value to tenants and you can justify increases based on improvements
- renovate your unit to make it sparkling to today’s younger renters including the bathroom and kitchen features
- list all the reasons why you must raise the rent – taxes, fees, HOA, repairs, insurance, new appliances, etc. and give them 4 months notice of raising their rent price
- tell the tenant you’ll provide free professional carpet cleaning and disinfecting services
Another way to grow profits is through lowering your taxes. Learn more about lowering property tax and operate your business to lower your top business expense — taxes.
To manage all of your properties professionally, choose a simple property management software. Easy to use cloud-based rental management software makes it easy to stay organized, cut paperwork chaos, improve property accounting and improve tenant relations.
Review the benefits of rental property management software now and take it for a FREE test drive.
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