How to maximize rent for your rental property?

Every property owner wants to increase the rent they receive on their property. But unfortunately, most of them look for shortcuts and quick fixes to raise their property's rent. While a huge element of the rental rate depends on the market, there are sound strategies to increase get a higher rent. These are smart strategies that aim to maximize profits while minimizing expenses. In this guide, we'll go through the most important steps and strategies to increase the value of your property.

Upgrade the interior of your property

The best thing about interior upgrades is that they don't necessarily have to be expensive. Even simple changes can drastically improve the appearance of the property and increase its value.

Understand your ideal tenant and cater the interior towards it. Put yourself in your ideal tenant’s shoes and consider what you would want. You can put a fresh coat of paint on your property or add modern wallpapers. Work with an interior designer if you have the budget for it. Otherwise, learn from free online resources such as Houzz and come up with cost-effective ways to improve the interior of your rental property.

For furnished houses, the type of furniture and how you place them play a critical role in improving the overall appearance of the living spaces. As a result, it enables you to demand higher rents and get more suitable tenants.

Increase rent with every lease renewal

Many professional property managers increase the rent on their existing tenants every year in accordance with the province’s guidelines. However, many investors are concerned with the optics of increasing the rent and do not consider the province’s rent increase guidelines to be significant enough to overcome the awkward conversation.

These annual rent increases compound over time. If your property does not frequently change tenants, increasing the rent should be part of your annual process.

Allow pets and charge more for it

This is perhaps the simplest strategy to increase the value of your rental income. Many people with pets have a hard time finding a rental home. If you decide to allow pets on your property, you can raise the rent a little bit and still get numerous tenants.

However, this would work only when you are renting a house and not an apartment. Apartment complexes generally have broad guidelines on pets, and if your apartment allows pets, you can use the same strategy and get a higher rent.

Modernize the kitchen and bathroom

It's a misconception that you need a complete revamp to see any noticeable difference in bathrooms and kitchens. In reality, small modifications and additions can alter the appearance of kitchens and bathrooms.

Fix all plumbing fixtures like leaky and slow taps. Add a fresh coating of paint, tiles, or wallpapers. Include smart storage solutions in your bathroom and kitchen that will make them more spacious and aesthetic. You can even get the doors of the cabinets professionally repainted to give the kitchen a newer look.

These simple modifications won't cost you thousands of dollars but increase the value of your rental property.

Do proper advertising

The real estate market is like any other market – customers pay for what they see. Spend a little money and hire a professional photographer. Ideally, you do this when your property is vacant so that you can stage the property properly. Let them take a lot of pictures of both the interior and the exterior of the house. Save the professional pictures to use for your future rental listings.

In addition, you should have a clear and concise description of your property where you highlight its best features. These things cost very little but attract tenants with more spending power.

Be energy efficient

Having energy-efficient and green energy solutions in your house will automatically increase its rental value. In most cases, tenants pay for their utility consumption. If you can decrease their expenses through energy-efficient appliances and green energy solutions, you can command a higher rent.

Start with energy-efficient household appliances. It would entail a significant one-time investment, but you can also do these things progressively instead of all at once. This is a simple strategy to increase the value of your rental property.