5 Ways to Increase Rental Property Profits
Whether you offer rental properties in Atlanta or elsewhere, to make a little extra money or it’s your whole source of income, it’s important to find ways to maximize your profits. Raising your rent isn’t typically an ideal method of generating more income, but there are other things you can do with your house rentals to increase rental property profits and make them more appealing.
Keep Leases Up to Date
When you offer homes for rent, you likely have a lease you require tenants to sign. This lease dictates the terms of their stay, as well as the price they will pay per month. However, once the lease is up, how do you handle it? Do you pursue signing a new one or do your tenants revert to month-to-month status? If you are allowing your renters to remain month-to-month, it’s time to re-evaluate your process. It’s also important to keep rent amounts at market level.
Monitor Your Expenses
You likely have a budget for your own home, but it’s just as important to have one for your rental properties. While some expenses may be unexpected, there are certain costs you can predict on a monthly basis. It’s also critical to keep close records of your expenses and evaluate those records yearly. This will help you cut out unnecessary costs and increase your rental property profits.
Set Money Aside for Major Expenses
Rental homes sometimes need additional work, just like any other home. For instance, there may come a time when you need to replace the roof, windows, water heater, furnace and air conditioner or tenants need new appliances. Setting aside a little money every month can help you prepare for these expenses and save money in the long-term.
Exercise Preventive Maintenance
Waiting until problems occur will increase the cost of repairs. To prevent these high repair costs, preventive maintenance should be scheduled on a regular basis. The HVAC unit, for instance, should be serviced yearly to identify any issues in their early stages. The roof should also be inspected regularly.
Practice Proper Eviction Techniques
No one likes the idea of evicting someone from a home. However, if you allow anyone to remain in your house rental for more than a month without paying, you are losing money, even if you have financially planned for vacancies. Make sure you follow the appropriate eviction process to avoid legal issues.
Offering rental homes can be profitable if you take the right steps. While raising the rent may seem like the fastest way to make more money, it can also be a quick way to lose tenants and can cause difficulty filling vacancies quickly. When you turn to these other methods, you can increase rental property profits and keep your tenants happy.
If you’re looking for help managing your house rentals, contact us. Our experienced management team can provide the property management services you need to keep your tenants happy and your venture profitable.