Rents are at an all-time high, even as they begin to peak and stabilize. Over the last year or two, rental property owners didn’t need to do much in order to maximize their rental income; the market provided everything that was needed in order to raise rents. Demand has been extraordinarily high and supply has remained low. That creates a sense of competition among tenants, and they’ve been willing to pay more to rent a home.
The rental market throughout Florida is still pretty competitive. However, you really cannot take for granted that rents are just going to keep going up in response to the market. To effectively maximize your income, you’ll have to provide more value.
We’re sharing some proven rent increase strategies that will help you earn more on your rental property.
Invest in Property Improvements
The best way to maximize your rental income is to ensure that tenants are willing to pay higher rents in order to live in your home. Keep up with improvements and updates. Those renovations that you make will ensure your property is ultimately worth more.
There’s likely no need to invest in a full rehab; your property is likely well-maintained and in good shape. But, if you make some strategic upgrades, most of which are cosmetic, you’ll find that you can raise your rent and earn more on your property. Here are some ideas on where to start:
- Update your kitchen and bathrooms. New appliances can increase your rental value, especially if they’re energy-efficient models that are quiet and attractive. Stainless would be great, but they don’t have to be high-end models. Just make sure they match and perform. In the bathrooms, you can earn more in rent by installing new faucets and hardware. A better mirror and improved lighting will also make a difference.
- Paint. During turnover periods, it’s especially important to put a fresh coat of paint on the walls. You don’t have to wait for turnovers, though. It’s a nice incentive for residents to renew their lease agreement if you offer fresh paint. Invest in high-quality, durable paint so it doesn’t chip or fade too quickly. Paint may not seem like an improvement, but a fresh coat of paint can make your property look brand new. Tenants will notice. Rents will increase.
- Floors. If you want to keep carpet in your rental property, consider neutral colors and durable grade fibers. You can also go a step further and replace your carpet with hard surface floors. Laminates and faux hardwoods look great, they’re easier to maintain, and they’ll absolutely maximize what you’re able to earn in rent.
- Technology. Tenants are looking for ways to enjoy more technology in their homes. Install a video doorbell. Offer smart home technologies such as programmable thermostats and appliances. When tenants can regulate their air conditioning and lights from an app on their phone, they’re more than happy to pay more in rent every month.
Maximize what you’re able to earn by making improvements like these. You don’t have to invest a lot of money, and you’ll easily earn back whatever you spend in higher rents.
Prepare a Tenant Retention Plan
This strategy is your secret weapon to more income: tenant retention. Keeping your existing tenants will save you money on turnovers and vacancies. Long term residents are more valuable to you and your property. This type of longevity provides stability, consistent income, and the assurance that your residents are taking good care of your investment. You won’t have to make repairs and updates between tenants. You won’t have to pay for marketing and tenant screening.
Retain your residents by providing an exceptional rental experience, responding right away to maintenance and repair requests, and listening to them when they have concerns or need help. You’ll want to increase your rent at renewal time; this is part of maximizing what you earn. However, don’t raise the rent so much that you give your tenants a reason to look elsewhere. Keep your rents at or even just below market averages.
Earn More with Property Management Partnerships
Smart investors understand the importance and the value of a property manager.
You’ll earn more money on your investments when you partner with an Orlando property manager thanks to the industry expertise and a deep understanding of the local rental market that you’re able to leverage.
Property managers maximize your income by:
- Reducing vacancy
- Screening residents more thoroughly
- Keeping you legally compliant, from your lease agreement to fair housing
- Collecting higher rents, based on market data
- Reducing maintenance costs, thanks to preferred relationships with vendors.
- Establishing resident relationships that promote retention.
Managing rental properties can be challenging at times, but it’s a challenge that most investors and landlords are willing to take on because of the rent that’s earned and the long term return on investment (ROI) that’s possible. You don’t have to be a hands-on landlord in order to have a successful experience, however. You can hire a property manager and enjoy all the benefits of owning rental property with none of the challenges.
Offer Longer Lease Terms
Finally, to be able to plan your finances well, avoid vacancy, and bring in more money you can consider offering longer lease terms to tenants. This provides a degree of financial stability since rent payments will be predictable for a longer period. In turn, to encourage tenants to sign longer lease terms, consider offering them a small discount on their rent installments.
Following these tips can help maximize your rental income and make sure that your investment pays off in the long run. By keeping up with renovations and improvements, retaining residents, and working with a property manager, you can expect to increase the chances of having successful and more profitable tenancies over time.
If you’d like to talk more about this, please contact our team at Park Avenue Property Management. We work in Lake Buena Vista, Orlando, Kissimmee, Celebration, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout central Florida.
