For most real estate investors, improving their rental income is their main priority. However, there are more ways to improve earning than increasing rent. You indeed need to spend money to earn money. This is also true in real estate, as there are many avenues in which you can invest that can improve revenue.
Today, we'll review three great ways to improve your rental income without necessarily increasing your tenant’s rent.
One of the best ways to improve your rental income is to ensure you’re welcoming the best-suited tenant. The better the tenant, the longer they live in your rental. The longer they live in your rental, the lower your vacancy rates are and the more consistent your income is. This can be tricky as every time you fill a vacancy, you’re taking a chance with whoever is moving in. You can help mitigate the risk by carefully screening the potential tenant.
Typical items on an application you should watch include if the applicant is a smoker, if they own pets and their renting history. This can take time to get right, as only some have the resources to look into applicants.
If you choose to manage your property, you’ll want to check the applicant’s credit score to understand better an applicant's ability to pay rent on time. Checking their residential history can help you understand what to expect from them as tenants. Past behavior may hint as to their future interactions. Proof of monthly gross income proves whether or not they can afford to rent your property. Typically, you want them to be able to provide evidence of at least three times the monthly rent amount. This can feel overwhelming to do on your own, especially if you’re new to the real estate industry. However, a full-service
property management company will have the resources to screen potential tenants better.
Many improvements can be made to your Long Beach rental property, like upgrading the home's core systems, such as electrical, plumbing, and HVAC. These upgrades can yield a higher asking price for rent, though maintaining the property can mitigate losses and ultimately improve your bottom line.
Typically, you’ll want to do yearly inspections of the core elements of the home—especially plumbing and electricity, as these are oftentimes incredibly costly if left unchecked. Water damage is one of the most common insurance claims in rentals. This can be avoided by regular maintenance,
yearly inspections, and rapid response whenever a tenant calls about leaks. On the other hand, faulty wiring can result in electrical fires, which can completely destroy your rental.
Property management companies are often seen as a cost of the real estate industry. However, it should be seen as an investment. While a fee is associated with hiring a property management company, they often have far more resources than an owner.
Property management companies aren’t one size fits all, and as you expand your portfolio, you should consider reevaluating your property management company regularly. Be sure to find a company that specializes in your type of rental, is local to your area, and is knowledgeable about your neighborhood and local laws. This can go a long way in improving your rental income over time.
Improving your rental income is ultimately the goal of every investor. However, there is more to improving your bottom line than just increasing the rent or cutting back on spending. Knowing how and when to invest your money can significantly affect your passive income. If you want to improve your monthly earnings or
collect rent online, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.
