Landlords can rely on having a fixed passive income when they’ve attracted long-term tenants to their rental homes. Having rented out your property for some time, you may arrive at the point where you want to increase your rental rates.
On paper, raising the rents can be a good idea. After all, who doesn’t want to earn more from their investment property? But you also need to entertain the other possible consequence of a higher rental price.
Some tenants would find that it exceeds their monthly budget and won't renew their lease. If you have renters who pay on time and respect the leasing terms then losing them can mean starting the search once again for great tenants.
Turnover means performing property marketing and tenant screenings. It will also mean facing the eventuality of a vacant unit. This can be more trouble since you need to keep up with the maintenance tasks without regular earnings to cover expenses.
To avoid being confronted with this scenario, ask yourself if there are other ways to increase your income without touching the rent fee. This article will provide landlords with useful tips on raising income without needing to resort to rental price adjustments.
Here are a couple of ideas you can try as a rental property owner:
Collect Pet Fees
Deciding to be a pet-friendly rental provides a ton of benefits in terms of earning a higher income and scoring more quality renters. When welcoming tenants with pets in your rental, it’s reasonable to ask for pet fees. Due to the higher exposure to potential property damage, asking for pet fees can help cover repair expenses.
Consider whether you want to be collecting a pet rent, pet deposit, or a one-time pet fee. These mitigate the risk of having pets in your rental property. It also lets you earn extra income aside from the rental payment coming from the tenant every month.
Hiring a property management company can make pet fee collection easier. They can assign the right pet fee that can cover any future repair costs. Remote landlords can take advantage of this service since the company can collect the pet fees on their behalf.
Collect Penalties for Late Rent Payment
It’s normal for landlords to include charges for late rental payments in leasing agreements. However, some landlords can neglect to collect the penalties. Failing to do this can encourage tenants to not pay the rent promptly since there are no repercussions.
Having these fees in place can mitigate late payments, thus ensuring steady income. It can also provide you with additional income if a tenant makes a late payment.
It’s much better to enforce the terms of the lease when it comes to late payments. Property management companies are excellent at collecting late fees. Tracking payment records and collecting what’s due to you is among their specialties.
Connect with Local Businesses
A rental property will inevitably require repairs. This can come in the form of broken pipes, leaking roofs, or water damage appearing on your walls and floors. These are serious property issues that need prompt and professional attention.
If you cultivate a good relationship with your local service providers, they can make being a landlord easier. You get to save more when you maintain your property in great condition. The local vendors may also offer you discounts as a repeat customer and you’ll save time having to search for and vet new contractors every time a repair is needed.
Offer Parking Spaces for a Fee
If your tenants own personal vehicles, they’re likely to look for safe parking spots close to the property. They want to keep their automobiles secure so they’re willing to pay an extra fee for parking.
You can designate a parking space or search for lots that can be utilized for parking. This way, the renters don’t need to look for a spot every time they arrive home from work. If your rental is located in a densely populated area, there’s more reason to prioritize having available parking. You can also choose to welcome non-renters to earn more from parking charges.
Create More Storage Areas
A lot of renters value having a lot of storage spaces. As a landlord, you can take advantage of this need to earn extra income. Unused areas of your rental property can be transformed into additional storage spaces for a fee. This can include garden sheds, basements, and attics.
Large families tend to carry more belongings and appreciate the spare storage room. Instead of renting a storage facility further away from the property, they’re much more inclined to rent the extra storage areas from you. This keeps them near to their possessions so anytime they want to store or remove them, they can readily do so.
If you have several unused spaces, you can extend the storage rental to neighbors and their tenants as well.
There are ways to raise your income without going for the immediate rental price increase. Study the suggested ideas above to find which are doable for your specific rental home. Connecting with a third party such as a property management company can also make things simpler. They have the skills and efficient processes to perform fee collections for your benefit.
If you’re looking for professional services from a property management team, contact Taylor Street Property Management now! We’re always ready to assist you in boosting your rental earnings. Through our industry experience, we offer solid advice and a full range of management services to make your rental property investment thrives.