As a Palm Beach property owner, generating more rental property income is always the goal. After all, having an investment property is just like owning a business.
The problem is, no matter how well you think you’re doing as a landlord, you can’t just ask your boss for a raise and start making more money. Instead, you have to get creative and generate more cash without running your tenants out of your rental.
If increasing your rental property income is on your mind right now, keep reading. Today we’ve rounded up the best ways to make additional income from your rental properties.
Best Ways to Increase Your Palm Beach Rental Property Income
1. Increase the Rent
One of the most obvious ways to make more money from your Palm Beach rental property is to raise the rent. However, it’s not the easiest solution.
By setting a rent rate that’s too high, you risk doing one of two things. First, you risk not securing a lease renewal from your existing tenants. If the rent is too high, your tenants will move out and find a similar property that leases for less. This leaves you with a vacant property and no money coming in each month.
Second, if you don’t have any tenants in your place, and you set a steep rent rate, you might end up with an extended vacancy. People do their homework and know the going rates for similar properties. You can’t forget the competition.
When it comes to raising the rent on a Palm Beach rental, you should keep the following in mind:
- The status of the current rental market
- How valuable your property is
- What amenities you can provide tenants that generate a higher rent rate
- How much similar properties in the area are leasing for
Lastly, you should always take advantage of the free rental property analysis your Palm Beach property management company provides. This way you can set a rent rate that earns you the money you deserve and that your tenants are happy to pay each month.
2. Allow Pets
In the United States, it is estimated that 72% of renters own a pet. However, finding rental housing that allows pets continues to be a struggle for pet owners.
Whether to allow pets in your rental property is a tough call. After all, pets can do a lot of damage to your investment property. Sometimes it’s just not worth all the trouble. That said, if you’re looking to earn some more cash, adding a pet addendum to the lease agreement is a good idea.
When you allow pets in your Palm Beach rental, you can increase your rental property income in two ways:
- Ask for a non-refundable pet deposit to cover things like damage to the property at the end of the lease term. No damage? That’s extra cash in your pocket.
- Ask for a pet fee each month in addition to the standard rent rate. This money, although not a lot, adds up after a while.
In the end, people who love their furry friends and don’t want to keep hiding them from landlords will pay a little extra money to keep them around.
3. Make Repairs in Between Tenants
Another great way to increase your rental property income is to handle all maintenance and repairs right away. This includes while you have tenants leasing from you, and in between tenants too.
If you’re getting ready to place a new tenant in your Palm Beach rental, consider these helpful tips for saving money and making your property rent-ready:
- Have the carpets professionally cleaned before you replace them – a good cleaning does more than you think
- Fix the big stuff – AC units, appliances, and plumbing and electrical fixtures
- Make upgrades only when you know they’ll generate you a higher profit (bathrooms and kitchens can net you returns upwards of 80% or more)
Even when you don’t have tenants in your rental property there are opportunities to increase your income. The key is being smart about what you spend your money on and how valuable you make your property.
4. Add a Lease Termination Fee
Anytime your rental property is vacant, you stop making money. Not to mention, finding a new tenant can be a time-consuming and costly process. That said, sometimes you can’t stop a tenant from leaving your rental – even if they break the lease agreement to do so.
To recoup some of your losses in the case of a lease termination, consider collecting a lease termination fee. If you collect enough, you could offset the cost of a few months’ worth of rent while you screen for a new tenant. With many property management companies leasing vacancies within 30 days or less, it will be as though you never skipped a beat. In fact, if your property leases quickly enough, you’ll even make money off a lease termination.
5. Maintain the Yard
As a landlord, you know the importance of curb appeal. It won’t matter what the inside of your property looks like if a potential tenant pulls up to see your rental and notices the landscaping is less than stellar.
By taking care of the landscaping, you have a chance to land a great first impression and even bump up the rent rate a bit. Even better, if you agree to take care of the landscaping throughout the tenancy, you could charge your tenants a premium for the added services. If you work with reliable landscapers, you could be the one to come out ahead when it comes to profits.
Not sure what to do to boost your Palm Beach rental’s curb appeal? Check out these tips:
- Clean up the walkways and make sure they’re free of leaves, rocks, and other debris
- Mow the grass, trim the hedges, and prune the bushes and trees
- Add fresh mulch to flowerbeds to make them look fresh and encourage new growth
- Clear out the rain gutters if they’re full of leaves, mud, and muck
- Add patio furniture to the backyard oasis you want your tenants to enjoy
In addition to sprucing up the yards, you can also paint the doors, power wash the exterior, and even paint the windowsills to give your rental an affordable facelift that will earn you more money.
6. Hire a Reputable Property Management Company in Palm Beach, Florida
When you hire a Palm Beach property management company to handle your investment property for you, you open yourself up to instantly increasing your rental income. Plus, you give yourself more time to enjoy the benefits of being a landlord without having to lift a finger.
Are you in need of Palm Beach property management? Then contact us today and see how we can maximize your property’s return on investment.
With Real PM Sunstate, we strive to save you time and money. From late-night phone calls to expert advertising of vacancies and monthly rent collection to maintenance and repairs, you can trust us to take care of your property as though it were our own.
With our professional and trustworthy property managers, you enjoy the peace of mind that your rental property is in good hands and that your tenants are of the highest quality possible. And because we always have your bottom line in mind with every decision we make, you will never have to worry that you’re losing out on an opportunity to increase your rental property income. Instead, you’ll have to worry about how you’re going to spend all your passive income.