How to Increase Rent

How to Increase Rent

Cash flow or rental properties are one of the simplest, yet best ways to accumulate income on a monthly basis. However, owning a rental property comes with many expenses that include constant maintenance and upgrades that eat into your profits.

Therefore, understanding how to increase rent without alienating your tenants or making them move is paramount to maintaining a positive cash from your properties. Here are five methods you can use to increase the amount of rent while maintaining good relations from those who live on your properties.

Make Sensible Interior Upgrades: Basically, the higher number of new things that are on a property, the better it will attract new tenants who do not mind paying more for what you provide. The simplest way is to start with the appliances and the overall appearance of the property itself. A good cleaning, fresh coat of paint, and a new appliance or two can go a long way towards increasing the value of the property with minimal investment. It might sound tacky but if you install something that is new, you may want to leave the manufacturer tag on the item so people can see that it is brand new.

Add Another Bedroom: An additional bedroom provides a great benefit to your rental property because it can add another person who pays rent. With the popularity of formal dining rooms and expanded kitchen areas falling out of favor, an additional bedroom is the one benefit that virtually all residents can appreciate even if they only use it for storage. You can safely increase the rent 10% to 15% and make it a powerful selling point in your adverts.

Amenities: If you are looking to upgrade your rental property in the least expensive manner possible, then adding amenities might be the answer. A washer & dryer is a powerful attraction as many potential tenants see it as a big positive. Plus, for those who are renting out homes having a deck in the backyard is another powerful drawing point as it provides extra space. You should avoid things like swing sets that never get used or pools that require considerable maintenance.

Upgrade the Exterior: The old saying that you never get a second chance to make a first impression really comes to light with the exterior of your rental property. Landscaping the yard, repainting the exterior, and removing any trees or bushes that hide or perhaps hinder the appearance of the property can do wonders in attracting new tenants.

Make Something Standout: Putting something into your property that really makes it standout may help convince the undecided to rent from you. New or refurbished hardwood floors that look new can do wonders in taking years off the appearance of the property itself. In addition, even the little things like a new welcome mat or perhaps sharp-looking patio furniture adds that extra zing to the place. Basically, you want something that is memorable so that potential renters will keep you in mind.

By taking a positive, proactive approach, you can help your rental property increase in value. This is the best way in how to increase rent as you are providing a benefit to tenants who will gladly pay more to live in your property.