Owning a rental property can be a great way to earn a steady passive income. However, there may be times when your rental profits may not be enough.
Rising property taxes, insurance premiums, and maintenance costs can quickly eat into profits, leaving little room for savings or reinvestment opportunities. Additionally, prolonged vacancies or unpaid rent from tenants can disrupt your cash flow, further straining your finances.
If you are relying solely on rental income, these challenges can make it harder to cover expenses, generate consistent profits, or achieve long-term financial goals.
To offset these difficulties, you must look for ways to increase your rental income, such as upgrading your property, improving efficiency, or marketing to attract higher-paying tenants.
In this article, the experts at KRS Property Management will go over 5 simple strategies to get more rent out of your Raleigh rental!
Top Strategies for Getting More Rent Out Of Your Investment Property
There is plenty you can do to increase your rental earnings. Here are some examples:
1. Adjust Your Pricing Strategy
If your rental property is not making as much profit as you expected, chances are, you need to adjust your pricing strategy. If the cost of maintenance, repairs, management fees, mortgage payments, and other operational costs are creeping into your earnings, then your current rates are too low.
You can review your rental rates by researching the local rental market to compare your property with other similar ones in the area. Keep in mind key factors such as property size, condition, amenities, and location.
If your property is underpriced compared to similar rentals, then you should raise the rent responsibly. But before that, it’s important to assess current market trends, such as tenant demand and vacancy rates, to determine whether it’s a good time to raise rent.
You can increase rent without driving tenants away by approaching the process thoughtfully and transparently. Provide tenants with written increase notice in advance, explaining the reason for the increase, such as rising maintenance costs, property improvements, or market adjustments.
Keep the increase reasonable and aligned with local rental market rates. Make sure to highlight any upgrades or added amenities that justify the change. Open communication fosters goodwill, making tenants more likely to accept the increase.
2. Make Strategic Upgrades and Renovations
To justify higher rent, consider upgrading key aspects of your property. Start with improvements that tenants value most, such as:
Modern Kitchens: Tenants can’t resist a newly renovated kitchen. Install new countertops, invest in energy-efficient appliances, and update the cabinets to create a more stylish and functional space.
Updated Bathrooms: Replace old fixtures with modern options, add attractive lighting trends, and regrout tiles to make the bathrooms feel clean and contemporary. Moreover, if you have the space and the budget, adding more bathrooms to your property.
Flooring: Swap outdated carpets with hardwood, laminate, or luxury vinyl for a more durable and appealing look.
Landscaping: The exterior of your rental property plays a crucial role in its profitability. A refreshed curb appeal and a well-kept facade signal quality and care can justify higher rental rates.
Cosmetic upgrades: Small upgrades like a fresh coat of paint, modern light fixtures, and new house numbers can also enhance your property’s appeal. Ensure all renovations align with the neighborhood’s standards to avoid over-investing.
3. Offer High-Value Amenities
Tenants are often willing to pay more for properties that include desirable amenities. Here are some amenities you should consider adding to your property.
In-Unit Laundry Facilities: No one enjoys having to go to the laundromat every single week. A washer and dryer inside the unit is a major selling point for rental properties, particularly for families or professionals.
Outdoor Spaces: Enhancements like patios, balconies, or landscaped yards provide additional value to tenants, particularly in family-friendly or suburban areas.
Ample Storage Space: Walk-in closets, built-in shelves, or large cabinets are highly desirable for tenants looking to organize their belongings easily.
Fitness Center or Gym Access: On-site fitness amenities or partnerships with local gyms are attractive perks for health-conscious tenants.
Pet-Friendly Features: Tenants with pets love properties that offer pet-friendly features, such as fenced yards, pet waste stations, or nearby parks.
Parking: Dedicated parking spaces, garages, or covered parking are a major selling point, especially in areas with limited street parking.
4. Focus on Property Maintenance
Well-maintained properties command higher rent because they’re more attractive to tenants. Taking a proactive approach to property maintenance, with regular inspections, deep cleaning, and timely repairs, is key.
Additionally, enhancing the curb appeal will help you create a strong first impression when marketing your property.
5. Rent to Tenants with Pets
The number of pet owners has grown exponentially in the past decade. Despite this, pet-friendly rentals can be incredibly difficult to find.
Because of the limited supply, tenants are willing to pay higher rents for properties that not only welcome but also accommodate their pets. That’s why pet-friendly amenities, such as a fenced yard, pet waste stations, or designated pet areas, command higher rents.
Renting to tenants with pets comes with its fair share of challenges. Untrained pets can damage your property, disrupt nearby neighbors, and cause altercations. However, you can minimize these risks by conducting extensive pet screenings.
Moreover, by charging a pet deposit or a monthly pet fee (in addition to your regular rent price), you’ll easily cover any increased maintenance costs without worrying about losing your earnings.
Bonus Tip: Partner With a Property Manager
A professional property manager can provide valuable expertise in setting competitive rent prices and marketing your property effectively.
They can also assist with tenant screening, maintenance coordination, and lease management, ensuring a smooth rental process. With their insights, you can confidently make decisions that maximize your rental income.
Bottom Line
Not every rental property reaches its full potential right away, but with the right approach, profitability is within reach. Factors like vacancy rates, maintenance costs, and rental pricing can influence your property's success, but strategic planning and effective management make all the difference.
By focusing on quality upgrades, offering desirable amenities, and maintaining your property to a high standard, you can attract quality tenants willing to pay more. With these strategies, your Raleigh rental home can achieve greater appeal and increased rental value
If you’re in search of a seasoned property manager to help you get more rent out of your Raleigh rental, look no further. Contact KRS Property Management to learn how we can help you!