3 Ways to Increase Rental Income without Losing Tenants
Most landlords and property owners assume that the only way to increase their rental profit is by increasing the rent itself. While this seems to be a straightforward move, It actually puts your investment property at risk of losing tenants. Your tenants may seek new rental homes that have comparable amenities for a better price, leaving you with no rental income at all.
So, how can you strike the sweet spot between increasing your rental income and keeping tenants satisfied? In this article, we will discuss clever strategies that will not just make and/or save you money but will also keep your cash flow secured.
Rent out Additional Amenities
You need to learn how to capitalize on your tenant’s convenience. Look over your property and assess any upgradable aspects you can find. Do you have an extra plot of land? Why not create additional parking spots and rent them out to your tenants?
Another creative idea for adding convenience is renting unused space as storage. If your property has a shed or unfinished basement, rent them out to make extra income.
For property owners with multi-family apartments, you might want to invest in shared spaces like a self-service laundromat or vending machines in the common area. These investments will likely pay for themselves in a couple of, if not months, years especially when these services aren’t available nearby.
Tenants are always willing to pay a premium on amenities like storage space, in-house laundry, and parking space for the sake of added convenience. This method will not only give you an added stream of income, but you’ll also keep them satisfied.
Partner Up with Local Businesses to Minimize Cost
Adding something new is not the only thing you can do to increase rental income. Sometimes, all you need is to reduce your property cost.
You might want to capitalize on your negotiation power and find vendors to service your investment portfolio at a competitive price. Start looking around your area and build professional relationships with local businesses as it can save you money in the long term.
Of course, if you don’t have time to search and access vendors, hiring a property management company is also a great idea. They likely know and have strong relationships with local partners already to resolve maintenance issues that your property might encounter at a discounted cost, saving you more money in the long run.
Update Your Property Management
How’s your rent collection? How do you deal with emergency maintenance? Are you keeping up with all of your tenant’s requests? While you might think that these are unrelated to your earning potential, your property management is a dealbreaker in keeping tenants happy and your cash flow stable.
Consider upgrading the way you manage your investment properties by hiring a property manager. These experts provide you with solid infrastructure in keeping track of your investment property’s day-to-day needs. Having property managers by your side will also let you focus on more opportunities at hand rather than devoting all your precious time and energy to worrying about your cash flow.
In other words, you’ll get something priceless out of your investment—peace of mind!
All in all, these are some of the many ways to increase your profit and minimize expenses. However, just like in any form of investment, you need to do your own research before implementing changes on your rental properties.
Also, do note that adding extra amenities and services for your tenants imposes a slight risk as you may not know which upgrade will likely attract your renters. Because of that, you need to survey your current tenants and find out what additional amenities will likely benefit them to ensure that you’re not spending extra for nothing.
Don’t know what option will work for you? Then feel free to reach out to us. Our team is here to provide you with sound advice for your investment properties. Real Property Management Service is one of Canada’s most trusted property management companies that helps property investors, regardless of experience and portfolio, all over the Greater Toronto Area.