If you currently own rental properties and are looking for ways to increase your rental income, check out our 7 surefire ways to get the most out of your income property.
Top Ways to Boost Rental Property Income
1. Strategically Increase the Rent
Increasing the amount of rent you charge tenants, especially if they are long-term tenants, is not always a good thing.
Bumping up the rate on high-quality tenants that continue to renew their lease from you may cause them to look elsewhere to rent. Further, collecting a lower rent amount is always better than no rent at all.
However, there are some instances when raising your rent rates are justified, including:
- If you’ve made significant upgrades to the property
- If the current rent rate is lower than similar properties in your area
- If you’ve decided to fully furnish your property
Unsure what your Alpharetta income property should rent for?
>> Click here to get a free, no-obligation Rental Analysis from Atlantic Property Management.
With this analysis, you’ll find out exactly what your property is worth, the expected vacancy rates, and what comparable properties are renting for in your area.
2. Include a Lease Termination Fee
One thing you can’t control as a landlord is a tenant wanting to break their lease agreement early.
And unfortunately when this happens, you could lose money because your rent stops being paid by those tenants. You then must clean and advertise your property for new tenants, as well as screen those new tenants.
You can, however, offset these costs by adding a lease provision that states if, for any reason, your tenants decide to terminate their lease agreement, they’ll owe a termination fee. With this fee, you can recover a few months’ worth of rent and help make up for the inevitable loss in money.
3. Thoroughly Screen Tenants
Commanding a high rental income is useless if you place bad tenants in your property.
A bad tenant could put you in a position to lose thousands of dollars in property damage, unpaid rent, and even court costs associated with eviction proceedings.
Yet, with a strict tenant screening process in place, you can check things like:
- Criminal records
- Credit scores
- Eviction history
- Sexual offense
- Employment status
Thoroughly screening prospective tenants will allow you to place high-quality people in your property that are willing (and able) to pay the high rent rates you have set.
Not to mention, a good tenant is less likely to damage your property, which can save you thousands in repairs.
All of this serves to boost your rental income and save you tons of money in the long run.
4. Conduct Routine Property Inspections
Inspecting your rental property is one of the best ways to avoid costly maintenance and repair costs. It’s also a terrific way to ensure you maximize your profits for the year.
Inspecting the condition of your property while your tenant resides in it gives you a chance to do two things:
- Check on Your Tenants. Make sure your tenants are upholding their part of the lease agreement. If they’re responsible for maintaining the yards and large appliances, this is the time to make sure it’s being done. Also, inspections give you a chance to make sure your tenants are satisfied. If they are, you’re more likely to secure a lease renewal come the end of their tenancy. And if they’re not happy, you have the opportunity to fix that and show your tenant you care. This is a great way to secure a lease renewal.
- Make Minor Repairs. Performing routine inspections of your property also gives you the chance to fix any minor repairs in your property before they become major (and much more costly) problems. As a result, you’ll be able to keep more of the monthly rent you collect rather than spend it on major repairs.
Keep in mind, however, that you should notify your tenants at least a day in advance of any inspections. Further, you should limit the amount of inspections you do throughout the year to a reasonable amount.
5. Collect a Pet Fee
If you’re looking to increase your monthly rent income and you happen to allow pets in your rental properties, you can always include a pet fee requirement in the lease. This includes a non-refundable pet deposit and an extra charge to the base rent.
The great thing about collecting a pet fee from tenants is that not only do you generate more rental income, you also open up the tenant pool to people with pets.
Finding a landlord that allows pets in their property can be tough. Because of this, most pet owners are willing to pay a premium to have their beloved pets live with them. This creates a win-win situation for both you and your tenants.
6. Charge a Roommate Fee
Many rental property owners charge a roommate fee for additional tenants living in the same property.
And although allowing extra people to move into your property may not even be something you want to do, the reality is that many tenants go from an initial two occupants to three (or more) during their tenancy.
If you do decide to add a lease provision that allows additional occupants to move into your rental property, make sure to follow these best practices:
- Require a background check on all potential roommates
- Update the original lease agreement to include any new residents and have everyone sign it
- Require your property manager to get your final approval before allowing a roommate to move in
- Add a lease provision prohibiting subleasing of your property
- Make all roommates jointly and severally liable so that you always receive your rent
Lastly, insist that for each roommate added to the lease, the monthly rent amount increase a specific dollar amount.
7. Hire an Alpharetta Property Management Company to Help
Though hiring Alpharetta property management company to manage your rental properties will cost extra each month, the services provided offer a positive return on your investment.
This is especially true if you enlist the help of a reliable, experienced, and knowledgeable property management company like Atlantic Property Management. After all, we’re dedicated to saving you money, keeping you out of legal trouble, and making sure you love your investment.
If you hire a trusted Alpharetta property management company, you’ll receive benefits like:
- Stellar customer service for you and your tenants
- Aggressive advertisement of your vacant property using several channels
- Proper tenant screening and placement
- Rent collection, routine property inspections, and maintenance and repairs
- Eviction and legal issue assistance
- New property acquisition for those looking to build their portfolios
- Help renovating, repairing, or remodeling your investment property
- Regular financial statements and tax reporting
- Satisfaction and tenant placement guarantees
In addition, if you hire Atlantic Property Management, you’ll receive an annual Rental Analysis so you always collect the highest, most competitive rent rates possible from your tenants.
Having an Alpharetta property manager on your side to handle daily tasks related to the management of your rental property actually helps you save (and even collect) more money in the long run.
You’ll have high paying tenants quickly placed in your vacant property, an airtight lease agreement with all the added fees needed, a solid rent collection process so you always get paid, maintenance and repair help, and much more thanks to the expertise of your property manager.
Are you looking for qualified property management companies in Alpharetta, GA?
Learn more about how our property management approach is designed to increase your rental property income by contacting Atlantic Property Management today.
We will work tirelessly to help you grow your rental property business, generate the highest rental income possible, and give you the chance to enjoy being a landlord.