If renting out properties is one of your sources of money, you might be looking for ways to boost your cash inflow through this way. If you think acquiring more and more properties for rent is the only effective way of increasing your income, we would suggest you focus on the rental properties you currently have instead. There are ways you can make more money through your current rental properties. Let’s look at some of these ways.
1. Reduce Vacancy
To reduce vacancies, it’s best to look for long-term tenants so as not to deal with turnovers. However, in case a tenant must move, you can minimize the vacancy by ensuring that turnaround time is minimum. So, the moment you know of the move, post ads about your vacancy. If your property is in a high-demand area, you will receive immediate interests and get a new tenant the moment your old tenant leaves.
If your property is located in a low-demand area, know that the demand of almost all properties in all areas is good at a price. In case your vacancies are high consistently, you may need to give a thought to your price point.
2. Minimize Turnover
There are several ways turnovers can be expensive for you. There are costs of advertising, replacing the flooring and painting and patching walls, and of course, there is a vacancy. Although a bit counterintuitive, in this context, a relatively lower rent might tend to increase your revenues.
Aim to get quality tenants that pay the rents consistently and keep your property in a good condition. When you get such tenants, do your best to keep them.
3. Increase the Rent Strategically
After discussing how lower rents can drive higher revenues, I’ll suggest that you increase the rents for the tenants of the longer-term. For this, you need to have knowledge of the value of your property relative to that of your competition.
As discussed before, tenants tend to be more loyal when they cannot find properties with lower rents elsewhere. However, this does not imply that rent should never be increased even if there are good reasons to do so.
Tenants have to spend money for moving too. If your property’s value is substantially higher than a new rental property’s value plus the moving costs, your tenants are likely to prefer your property.
Have a good idea of the rents in your property’s area by researching sites like Craigslist, Rentometer, Zillow, and MLS. You may find that it’s possible to heighten your revenue by small amounts (1% – 3%) every year while still remaining competitive.
4. Act Diligently on Late Fees
When it’s about late fees and rent collection, showing respect and kindness to tenants does not imply being a pushover. Although collections are not that pleasant for landlords but are quite important to keep your business running profitably. Ensure that your tenants know that it’s a business; a contract has been signed by them, and completing this transaction is part of your job while following the contract along with all applicable laws.
In case you let tenants get away with late payments that don’t include the appropriate fees, your money is being lost. Additionally, the tenants might try getting away with making the payments late several more times, leading to extra stress and work for you.
In case a tenant makes a payment late without adding the fees, explain politely that you cannot consider the rent until all the fees are paid. Hold firm so that they understand that they cannot take any advantage of you. It’s most likely that they will comply then.
Apply these tips to increase your money inflow from your current rental properties. You will be surprised to find the remarkable raise your revenues get with proper employment of these ways.Read More