The key to earning more on your properties is not about acquiring a ton of properties. If you think about it, it’s all about maxing what you currently have to work for you.
1. Maximize Vacancy Time
The first thing is finding responsible tenants to occupy the property. The best thing to do is to find a tenant that is willing to sign long-term so you can have the security of a tenant throughout a long space of time.
You can rebuttal and ask, “what if they move out during your long-term lease?”. The answer to that is to post an advertisement as soon as you are informed about the move to keep your property occupied 100% of the time. As you may know, results of replacing the tenant in certain areas are higher than others, however, the reality is every livable home has pretty solid demand at the right price
2. Keeping the Tenant Happy
By keeping the tenant happy, the turnover will be minimized. The goal is the keep the tenant there as long as possible to keep your income steady. Having to deal with tenants moving out cost! In some cases, being greedy is a bad thing and lowering rent throughout a long term contract is a great deal. Who wouldn’t take 15% or 20% less for a 2 or 3-year contract rather than charging 100% of what you would normally charge for one year? A deal like that, a tenant may never want to leave unless they have a significant change in their life.
3. Increase Rent Strategically
Here’s where the idea of contradiction comes in. After having a segment on lowering rent, let’s get into how you can raise the rent. Before we get into that, be aware that raising the rent is a very touchy issue. However, the reality is that knowledge of your property’s value compared to your competition cannot go unanswered.
A couple of ways to increase rent is to communicate to the tenant that HOA fees have increased or to inform them of upgrades of their home. While doing those upgrades, communicate to the tenants that they will be increasing rent and if they are okay with that, have them sign a new lease.
This allows you to have a maximum return on your investments and to make improvements and more money for the future.
4. Add Small Reoccuring Revenue (SRR)
Usually, this form does not apply to single-family homes (SFH), however, by adding SRR to your multi-family properties is a solid way to increase income on rental properties. You can negotiate fees for exterior and interior maintenance. For example, you can have exterior maintenance done once a month for $70 and interior for $70 as well. This will increase your revenue by $140 a month. Another idea is coin laundry, garage rental space, and monthly pet fees. Let’s just say for example you add the exterior and interior for $140 per month along with garage rental space for $30 and a monthly pet fee for $30. This will increase your monthly revenue to $200 per month! That’s not counting any income coming out of the coin laundry room which is a plus from the addition $200 per month.
All in all, before worrying about buying more properties, think about how you can maximize your revenue for the properties you already have.