It has long been known that investing in real estate is one of the easier ways to achieve passive income. Buying a property at an affordable price, renovating it, then selling when its value has gone up is the traditional way. Another is to just lease out a property and receive rent every month.
This method is guaranteed to pay the bills and other stuff. Although it sounds easy, for most novices, that is not the case. Newer investors may not know what they can do to increase their property’s monthly rental.
Is it the location? Or the overall beauty? There are various alterations one can make to convince possible tenants to pay more rent. And the following listed below can prove to be effective when done right.
Just like in dating, people are more likely to consider a property when it’s attractive. But how do you do that exactly? You can start by adding furniture.
A good location won’t matter much if the unit for rent is empty. This could make a possible tenant wonder if the property is even worth paying for. Renting out an empty unit is just a bad idea.
A unit is worth more if it has chairs, tables, cabinets—the usual things tenants are willing to pay for since they are essential. Make sure that you have beautiful furniture to get more attention. Those carved from the finest engraving machine will surely bring in more eyes since they are just smoother and cleaner.
Surprisingly, a unit can look bigger when furniture is placed in the open and not close to the walls. But don’t include too many as it may give the claustrophobic feel. People always like bigger areas, especially those who are raising children.
Most tenants will be more than happy to pay extra for a parking space. Nobody likes the struggle of finding a parking area every single day. Having a parking space gives you more leverage in increasing rent.
You can even increase it a little higher if your unit has a garage. This provides vehicles more protection. A garage also means that the tenant has more space to store belongings.
More Living Spaces
A big bedroom will always be impressive, but it won’t increase your rent since it is only one. More bedrooms mean higher income. Tenants will more likely pay more if a unit has tons of spaces needed for everyday routine.
If there are empty spaces, maybe consider turning those into another bedroom. A washing area is a good choice as well. Utilizing all the spaces will not only result in a higher rent but will also make a tenant want to stay longer.
It is common for possible tenants to beg that their pets be allowed within a rental property’s premises. Most landlords will reject it because pets are generally a nuisance. From making unwanted noises to ruining the unit’s interior, pets can cause a lot of problems.
But if allowing pets means higher rent, why not do it then? You can charge a tenant a little over a hundred dollars for every pet they own. Just make sure they don’t bring in dangerous dog breeds.
A nonrefundable pet deposit should be requested from the tenant to cover any damage caused by their pets. Pet fee is paid monthly, and failing to provide it means one less pet in the unit. It is completely up to the landlord on how many pets are allowed, but usually, the maximum is three.
The bathroom is known as the dirtiest place on any property. And no matter how clean it is, if it looks disgusting, there is no way you are raising the rent. Landlords often neglect this area for some reason.
Renovating it slightly can make a huge difference. A bathroom looks cleaner when the tiles are coated with fresh paint. Mold and flakes should be removed, and the toilet is spotless.
A tenant that is ready to move in wants as many perks included as possible. One of them will be an air conditioning unit. Having an air conditioner already installed will make negotiating rent easier. Nobody wants to carry that big an appliance every time they are to change residency.
Just Raise the Rent
At the end of the day, you are the one who decides how much to charge a tenant. The rent can be increased every time the rental agreement between the tenant and the landlord is renewed. It is even common not to have the courage to do so, especially when the tenant has been compliant with the rules and consistent in paying rent.
But raising the rent is necessary to combat inflation, pay the mortgage, and cover maintenance costs. Remember, the reason why you are renting out your property in the first place is to make money, nothing more, nothing less. So don’t feel bad about asking for more, it is their job to comply, and if they don’t, you can always find new tenants.