Let’s face it… You probably don’t have rental properties because it’s a lot of fun. You probably have rental properties because they are a way for you to make money.
Even though making money on your rentals seems easy and obvious, it’s not. Many people who dabble in rental properties quickly discover just how difficult it is to make money, and they end up selling their potentially lucrative properties as a result.
With the right tips, you can make a lot of passive income from your rental properties. Here are the secrets to making more money on your rentals.
The first step in making sure that you make money on your rentals is to decrease vacancies. That means filling vacancies fast by listing your property in the paper, on popular websites, and positing your contact information outside the rental property itself. Don’t be afraid to ask friends, family, and existing tenants to spread the word on your empty units.
Decreasing vacancies means more than just filling units with anyone you can find. It’s much more cost-effective to find reliable tenants than it is to find new tenants each year, so be mindful about who signs your lease.
Be smart about increasing rent
If you’re feeling the pinch, you’re likely to increase rent as an easy way to make more money. Although raising your rent is likely to happen at one point or another, it’s much more important to be smart about exactly how you do it.
Increase rent according to the cost of rentals in the area. It’s also okay to raise rent for existing tenants, but be mindful about communicating why the increase is taking place. Existing tenants will be much happier about paying higher rates if they understand that those rates coincide with new windows, increases in utility taxes, or a repaved parking lot.
Take care of late fees quickly
It’s important to show kindness and respect to your tenants if they fall on hard times, but you need to remember that you own property to make money. Be willing to be flexible, but make the terms of the negotiation clear.
If tenants aren’t upfront about their situation, it’s important to take care of late fees quickly. By paying rent late, they are putting you in a tough situation, especially if you depend on your rental income to pay your own bills. In addition, if you let a tenant get away without paying a late fee once, they will be more likely to do it again in the future.
Offer additional services
Get creative with the ways you make money on your rentals! There are a lot more ways than just raising rent to make a few extra dollars.
One way to create a little extra revenue is to install an on-site laundry facility. Not only will your tenants thank you because they no longer have to haul their laundry to the laundromat, you’ll make a little extra money every time someone uses the washer or the dryer.
If you rent out single-family homes, consider offering additional services. Some busy families may appreciate the addition of cleaning or landscaping services, which can be added with a contractor’s fee to their rental payment.
Enlist the help of a property management company
Making more money on your rentals can be a challenge, especially if you don’t have property management experience.
If you don’t want to spend the time filling vacancies or hounding tenants for late fees, consider hiring a property management company. Not only can they save you a lot of time, they can also save you a lot of money!
Contact Mountain View Property Management and learn more about how a property management company can help you make more money on your rentals.