Investing in rental properties can be very rewarding. In fact, some people manage to use their rental properties as their permanent and only source of income. Regardless of the size of your property, some creative ideas can help you maximize the return you get on your investment without having to break the bank. Just a few tweaks here and there will do.
In this post, we will walk you through the best ways to maximize the rent you get for your property with minimal investment. Let’s take a look!
Keep it in Good Condition
Regular maintenance of your property is essential. Preventive maintenance, such as servicing HVAC units and changing their filters from time to time can increase your property’s value significantly. By lowering the energy bills and making your home energy-efficient, you can attract high-paying tenants.
Arrange repairs as soon as your tenants complain about issues, to prevent costly replacements in the future. As you inspect your property, you will notice that most items require an easy fix. You can troubleshoot the problems and fix them before they become major issues.
Deep Clean Your House
Just sweeping and mopping the floors of your rental property is not enough when it comes to increasing the value of your real estate. Your tenants must feel safe and comfortable when they walk through the door.
You may have equipped your house with the best electrical appliances and modern security devices, but if the property doesn’t look clean, it won’t get you the rent you desire. Before you show your property to potential tenants, hire commercial cleaning experts for a deep clean to make sure it looks its best.
Give it a Fresh Coat of Paint
Cleaning can help remove minor stains on your floors and walls, but it can’t cover those dark and stubborn blemishes. A fresh coat of paint will not only cover these spots, but it will also make your space seem larger and brighter.
Most landlords increase the rent for their properties by a small amount every year after making a few superficial improvements. Fresh paint is the perfect way to enhance the curb appeal of your house and make it appealing to tenants. Paint your walls with neutral colors or bold shades to make your home vibrant and welcoming.
Add Valuable Appliances
If you want to earn more rent, you’ll need to make improvements to your property. One way to achieve this is by installing valuable appliances like a dishwasher and a washing machine. This will add value by making life easier for your tenants.
Smart and quality appliances can make the perfect addition to your residential property. They can significantly boost your property’s value and attract higher-paying tenants.
Charge Extra Fees for Pets
Most landlords charge for pets. Adding an additional fee for pets, such as $30 per month for having a dog or a cat, can boost your rental income. Some landlords have a no-pet policy. They don’t allow renters to keep pets.
However, if you want a high-paying tenant, it may be worth revising this policy to allow pets at an extra cost to them. A good tenant will take care of their pets and protect your property too. Even if they cause any damage to your property, you can hold them accountable – after all, you have a contract and a security deposit in place!
Add a Lease Termination Clause
Without a lease agreement and a termination clause, your tenant may feel free to break their lease anytime they want and there won’t be much you can do about it. Therefore, it’s importnant to specify the fees applicable if your tenant leaves before the end of their lease. For example, if a tenant leased your property for 12 months but leaves after eight, you can charge for the remaining four months of rent.
A rental agreement shouldn’t only include a termination clause, but it should also specify the rights and legal responsibilities of each party. It states your rights as a landlord and the duties of your tenant. It also specifies the fees you can charge if your tenant causes any damage to your property.
Screen Your Tenants
A background check on potential tenants will cost you a small investment, but it can save you much more in the future. Don’t rent your property to just anyone even if it has been vacant for months. Look for reliable tenants with a good track record. You don’t want to get into legal trouble because your tenant causes issues with the neighbors. Always conduct background checks on your potential tenants before finalizing a contract. Talk to their previous landlords to learn more about them or their behavior.
These were a few ways to maximize the rent for your property. Some renovations and maintenance might be costly, but if you consider the ROI in the long run, this small investment will pay you back many times over in the long run.