If you’re looking to increase the rent in your rental property, thus increasing your return, you want to be sure you’re doing it in the most efficient way. There are several factors that come into play, such as when to increase rent prices, when to lease, and how to prevent things that cost extra — like maintenance.
Here are five of the top ways to increase your rent prices the right way:
While putting a sign out in the yard of your property might attract some people who drive by or through word of mouth, you can be doing a ton more to get your property out in the open. And improving your reach with improve your chances of finding higher renters.
First, get a nice-quality camera and take some really good pictures. This is for the internet. With good pictures, you can better attract those looking online for properties to rent. And your picture will stand out from the tons of others who simple used their cell phone and bad angles to take theirs. Speaking of angles, be sure to take the full picture of your property at a 30-degree angle.
Don’t Set the Price Too Low
Think about it this way: if you price the property too high, you can realize that if you don’t get calls and fix it by lowering. This usually doesn’t happen when it’s too low, and then you’re stuck getting paid a lower rental fee for an extended period of time. You can be more aggressive about this depending on how long your house has been on the market, the time of year, etc.
First impressions are everything. So make sure your property is attractive right from the get-go. Think about how you can improve the appearance, such as painting the front door, fixing any window shutters, mowing, improving the flower beds, or fixing up address numbers. These are small expenses that might add up at first, but that will bring you better results long-term and make a huge difference in the amount of time your property is rented and at what price. Also, give the property a good cleaning before you show it. Put the blinds up, turn on the light, and add some air fresheners so they walk into a clean smell.
ALWAYS Screen Well
There’s really no point in having higher rent if your tenants are going to be a headache — and end of costing you more. So screen your tenants well to make sure you work with high-quality renters. Check all references from past landlords and employers.
Increase Rent With Renewals
This helps you account for inflation and increase your quality with each renewal. Just make sure you are clear with each tenant that in increase is coming as they renew. Even if the market hasn’t changed, plan to increase the rent at least a little each year. That way, you can train your tenants to expect it.
For more tips on increasing your rent prices, be sure to work with your property management company.