Of the 50 million rental properties in the United States, about 41% of those rental units are owned by individual landlords like yourself. Are you a landlord looking for ways to maximize the return on your rental property and increase your rental income consistently?
Setting yourself up for financial success largely depends on how you manage and develop your property portfolio. With the right strategies, making more money from each property is possible. Just think about what that could mean for your income.
Here are five key tips to get the most out of your rentals and maximize rental income in the Greater Atlanta area.
How to Increase Your Rental Income
Before diving into these five tips on maximizing your rental income, remember that every landlord and property differs. Check landlord laws in your state and city. When in doubt, speak with a property management company or download a helpful property guide.
1. Upgrade the Property
Upgrading your rental property with modernizations like new flooring, kitchens, and bathrooms can generate more rental income. After all, you can charge more for a rental home if it's modern and boasts up-to-date amenities and designs.
Kitchen and bathroom updates tend to have a higher return on investment when compared to other projects, such as home offices. Therefore, investing in modernizing these areas of your rental property is a sound decision that can result in greater cash flow.
2. Increase Efficiency
Improving energy efficiency in your rental property is one of the easiest and most cost-effective ways to improve profit margins. Make energy-efficient upgrades such as the following:
- Install energy-efficient windows
- Use LED lighting
- Use programmable thermostats
Lower energy bills mean increased cash flow and potential rental hikes, substantially increasing rental income. Furthermore, improving energy efficiency is an investment into sustainability which resonates with some tenants looking to rent at an eco-friendly property.
3. Appeal Property Taxes
With property taxes often a burden to rental property owners, an appeal may be the answer to keeping cash flow in their favor. Sure, property taxes are an important source of revenue for cities and towns. But sometimes, a home's assessed value doesn't reflect its true worth.
What should you do before the appeal? Compare the property to comparable homes and determine if they have fetched comparable prices or less than what was assessed. While at it, look into the tax benefits you can take advantage of.
4. Re-Amortize the Mortgage
Since re-amortization decreases the interest you're paying each month, you can reallocate those funds towards other investments and repairs that could bring in more income. Additionally, re-amortization allows you to pay more of your principal loan balance each month, meaning you will build equity faster with lower interest payments.
5. Rent Furnished Properties
Furnishing a rental apartment is an easy way to increase the potential income it can generate. Rental properties with quality pieces often act as a strong selling point for tenants, leading to quicker occupancy rates and increasing the possibility of longer leases with higher rents. Plus, you can charge more for a furnished property.
Property Management Services
What's the best way to increase your rental income? Work with a property management company in Atlanta. Property management companies specialize in leasing, budgeting, and tenant services. They understand the needs of a landlord and can help you find quality tenants.
They can also assist with property-related tasks. This includes collecting timely payments, addressing maintenance issues as needed, and ensuring compliance with state and local laws. In short, property management companies play an important role in helping landlords increase their rental income.
Click here to explore our property management services in Atlanta. We're here to help you boost your income.