You need more income, but raising rent increases the risk of losing tenants. A lower rent will make you more money than a vacancy, but what other ways can you increase your profit? Here are a few ways to avoid increasing rent, while still increasing your bank account.
One possible way to increase your income is to partner up with local service providers. If you use the same service for multiple properties, you are likely to be able to obtain a discount on those services. If you then charge the renter the same amount they would otherwise be paying, you can pocket the difference, adding to your bottom line.
Property Management Company
Project management companies can help you build your business. By taking some of the workloads, you will have more time to spend on other things. You can increase the number of properties you oversee, which will increase your profits. A project management company, like Keyrenter Property Management, can help you minimize your maintenance costs. They can help you determine whether rent increases would be profitable or risky, as well as help you minimize eviction rates.
Take advantage of any and all tax breaks. You can claim all maintenance and repair costs, so make sure you record any incurring costs. Furthermore, keeping a building well-maintained will also increase the reasonable amount of rent you can charge, so you’ll be saving money on two fronts.
Green is the new black, and increasing the energy efficiency of your property is likely to make everyone happy. Installing solar panels will lower the monthly utility bill and you can sell excess energy back to the grid, which will give you yet another source of income. An energy-efficient home is also another key selling point, particularly for millennials, which might allow you to reasonably implement rent increases.
There are plenty of ways you can increase your profit, and it doesn’t mean that you have to raise the rent. For more guidance on how to maximize your profit, contact us at Keyrenter in Sacramento today.