So you’ve had a little landlord experience under your belt and you’ve rented your home before. You have a vacancy coming up and you’d like to figure out how you can fairly raise your rent for the next tenant? You must offer something more than you previously offered before. In order to rent your home for a higher rent the next time around (excluding inflation costs), the following additions can justify a higher rent while still remaining within fair market value:
Include Landscaping Services:
Including a monthly service such as landscaping is a win-win situation for both the tenant and landlord alike. Aside from ensuring that your investment property will be well kept and looking it’s best when you include lawn services for the home with paid monthly rent, it also adds value to prospective tenants that are too busy or lack the desire to maintain the yard themselves despite wanting to live in a single family home. This strategy can also reduce tenant confusion over the appropriate standard of care for the lawn.
Depending on the type of investment property you own and the local utility company in your region, you may not even have a choice but to keep the property’s utilities in your name. If you do have the choice, think twice about operating this way. For starters, many utility companies will charge an additional fee for turning services off and on, providing an extra expense for owners during turnover. In addition, owners lose some control, but in most states will still keep all the liability even if it is the tenants that defaulted on the payment. Keeping the utilities in the owner’s name and either re-billing the tenant or including some, all, or a portion of the home’s utilities in the tenant’s rent, will provide more negotiation, incentive and some leverage when attracting potential tenants, again adding more value to the renter.
Update the Space:
While leasing out a remodeled home does not necessarily equate to the same dollars or return on investment that residential sales and remodeling offer, the simple truth is that a clean, updated space will appeal to a larger number of renters and bring in more monthly rent than an outdated space. A clean, neutral paint job and new flooring can go a long way in the rental world in providing a fresh, clean start. Updating fixtures and providing new appliances is also attractive to renters and need not be overly expensive or top of the line in order to make a rental more valuable. Clean, new, updated and perfectly functional is the way to go here.
Certainly a luxury home with special features, numerous amenities and custom, top-of-the-line appointments will raise the rent for sure, but the number of prospective tenants naturally diminishes. There are other creative ways to bring in more rent for your rental home, however the above list a few of the easiest and most common ways, with the important key being to add value to the tenant.