There are many ways you can increase revenues for your rental property portfolio without buying more properties. Try focusing on increasing the value of each property - one at a time – and increase profits with these quick tips:
Try hard to find tenants that you think are looking to stick around for a few years.Having some amenities (i.e. small patio for single houses/units or maybe a gym room for larger properties) may encourage potential renters to want to stay in your property for longer lease periods.
Related Article: Must Have Apartment Amenities Property Managers Should Have This Summer!
Minimizing Tenant Turnover
Turnover is costly! Many of these expenses of cleaning up an apartment come from the condition the last tenant left the unit. Focus on screening tenants properly and hopefully you will get respectful tenants who care about keeping the unit in good condition. Related Article: Tips for Managing Tenant Turnover
Increase Rent Strategically
Just as lowering your rent prices will lead to higher revenue and filling vacancies, increasing your rent prices for longer-term tenants will prove to be beneficial for the profit of your property. Make sure to use Rentometer to run some rent comps of local properties.That way you can show your tenants that your increase is in line with the neighborhood.
A good tip for approaching tenants about rent increases is to ask them if they’d like to see any improvements made to the unit that would make them more comfortable. This shows that you are making an effort to improve their living experience.
Being Diligent on Late Fees
Rent Collections or late fees should be approached with diligence as to keep peak performance with collecting payments on time and in an organized fashion. Your renters must understand this is your business and in order to maintain stability to your property, all payments must be made on the days scheduled. If you hold firm and stick to a set time and date for rent collection, you will see a number of decreases in late fees and rent payments.
Add New Revenue Streams Depending on your property type, adding small revenue streams will add value to your property and increase profits. For example for multi-family, adding coin-operated services such as laundry machines and vending machines will not only provide revenue, but add resale on property’s return on asset value! For a single-family, offering house cleaning and landscaping to tenants on their lease agreement can increase your annual revenue by negotiating rates with tenants who don’t want to hire outside services.