WEALTH HUB JOURNAL

5 Ways to Maximise Your Rental Income Every Year

Whether rental income is your sole source of income or you are looking to break into the real estate game, there are ways to maximise your rental income that are crucial to know.

According to the real estate cycle, rent prices are usually steadily increasing. That’s good news for property owners, but don’t think the value of your property is dependent on an invisible economic cycle. There are plenty of ways to take matters into your own hands.

Of course, as the adage goes, you’ve got to spend money to make money. Many of the most effective means of maximising your rental income involve investing money into your property. Yet, there are also ways to earn more from rent without spending a penny of your own.

Let’s explore five ways to maximise your rental income. If you follow these tips, you’ll see growth in your rental income year after year.

1. Always have a backup plan

As a property owner, your top concern should be consistently keeping your property occupied. After all, no tenants means no income. However, unforeseen circumstances can result in an unoccupied home or unit. Tenants sometimes have to move out unexpectedly.

Have a plan in place in case a tenant does not renew their lease or breaks it suddenly. The smartest way to do this is to keep the lines of communication open with your tenant. Ask them what their plans are. If they’re not sure they’ll be renewing, look for potential new renters.

2. Be a good landlord

One of the keys to ensuring the continuous occupancy of your properties is to be a good landlord. You may believe there will always be someone else to fill your units, so there is no need to keep the tenants you currently have. In truth, it is more valuable to keep a trustworthy, long-term tenant than to find a new one, even if they pay more.

For one thing, it takes time and energy to find new tenants each year. Building a reliable, long-term relationship with your current tenants takes away that stress. Second, you never know if a new tenant will pay rent on time or keep the property in good shape.

So, how can you be a good landlord and do all you can to keep good tenants? Above all, communicate and offer help when needed. Communication costs nothing and can save you thousands in the long run. Think about it: If your tenant encounters a problem in your unit, you want to know about it immediately so that you can fix it before it gets worse, right? Your tenant will be pleased, and your future self will be too.

3. Regularly review your rent price

The market changes all the time, and every smart property owner keeps up with these changes. The last thing you want is to charge too low. Over the course of a year, even $50 can add up to a good chunk of change. Prospective renters will compare your rent price to those in your area, so you should, too.

If you decide to adjust your rent, give your tenants plenty of notice. Remember, you can’t just change your rent price whenever you want to. There are laws that dictate you must wait until the lease agreement is up before changing your price. Then, explain to your tenant why it is being raised. If your rate isn’t well above comparable units nearby, the tenant should understand and won’t have any reason to relocate.

4. Renovate!

• Kitchen (new flooring, tile backsplash, countertops, appliances)
• New carpet/flooring
• Bathroom (new flooring, countertop, mirror, accents)
• Off-street parking

Even if you don’t have the budget for a major renovation, there are ways to boost your property’s value without breaking the bank.

• Appliances (washer/dryer)
• Landscaping
• Fresh paint

5. Invest in good photography

You can have the most beautiful property on the block, but it will sit empty if your photos don’t do it justice. If you don’t have a nice camera and photo editing skills yourself, invest in hiring someone that does. You’ll be surprised by the difference it makes.

*Our officers, employees, agents, and associates believe that the information and material contained in this handbook is correct at the time of printing but do not guarantee or warrant the accuracy or currency of that information and material. To the maximum extent permitted by law, our officers, employees, agents, and associates disclaim all responsibility for any loss or damage which any person may suffer from reliance on the information and material contained in this handbook, or any opinion, conclusion, or recommendation in the information and material, whether the loss or damage is caused by any fault or negligence on the part of our officers, employees, agents, and associates or otherwise. The information relating to the law in this handbook is intended only as a summary and general overview on matters of interest. It is not intended to be comprehensive, nor does it constitute legal, financial, or taxation advice. Whilst our officers, employees, agents, and associates believe that such information is correct and current at the time of printing, we do not guarantee its accuracy or currency. Many factors unknown to us may affect the applicability of any statement or comment that we make to your particular circumstances, and consequently you should seek appropriate legal advice from a qualified legal practitioner before acting or relying on any of the information contained in this handbook. The information contained in the handbook is of a general nature and does not take into account your objectives, financial situation, or needs. Before acting on any of the information, you should consider its appropriateness, having regard to your own objectives, financial situation, and needs.*