It might look straightforward when you first become part of the rental property business in Kansas City; Just collect the rent and that’s it. However, it’s not quite that simple.
A landlord should brainstorm and apply innovative methods to gain more rent for a rental unit. You don’t have to stick to simply accepting the regular rent. You can find more ways to increase your earnings.
Here are 5 tips you can use to increase the ROI of your Kansas City property:
1. Offer Quality Amenities
It’s not required for a Kansas City landlord to present the latest HDTV or smart technology features in a rental. However, renters want to experience the comfort and convenience of living in a unit equipped with efficient appliances and systems.
They’re willing to pay a higher rent, knowing that quality amenities are available. This can be a well-known brand or quality finishes in the rental furnishing. A landlord can offer the following top amenities, making the home irresistible to tenants and improving their living experience:
Consider investing in appliances with stainless steel finishes. These look sleek, modern and stylish. New appliances are also bound to be energy-efficient, lowering utility costs.
Some renters may own a vehicle. This can be advantageous to you, as well as your tenants.
If your Kansas City property includes a good parking spot, then additional rent can be included. Having a reliable parking area is a sought-out amenity.
2. Multiply Income Streams
Being a creative landlord in terms of providing solutions to tenants’ needs is a valuable skill. For your Kansas City rental property, make it a habit to think outside the box. Communicate with your tenants frequently. It will provide you with more information about what they wish and need to have as renters.
Even if the rent they’re paying is not that high, you can still increase your side income by offering convenient services. These can be extended to the tenants’ children and pets. You can even provide extra storage space, for example.
The average renter has a ton of possessions and being given access to extra storage for a small fee is certainly welcomed. If you have an extra room in your Kansas City property, convert it into a storage rental. You’ll earn a solid side income in the process.
3. Enforce Rent Collection Policies
If you hesitate to send notices to tenants in your Kansas City property who ignore rent due dates, you aren’t enforcing the terms of the leasing agreement. Ultimately, your rental business will be affected. It’s paramount that you practice collecting the rent promptly, according to the lease.
The rent allows you to pay off your future investments and mortgage loan. Therefore, it’s necessary to ensure tenants understand the importance of paying the rent on time. They should also know the consequences of failing to do so. As a landlord, you can implement the following:
Late payments delay your plans regarding what your earnings go towards. To motivate renters to pay promptly, a late fee can be imposed. If you allow delayed payments without penalty, you’ll find yourself getting less rent as your rental operation continues.
Since receiving the rent consistently affects your ROI, it’s vital to prevent delayed payments from occurring. Send notices for eviction if needed. Treat your rentals as a business from day one. This lets tenants be mindful of their responsibilities.
4. Welcome Short-Term Tenants
Rather than bearing the expenses of keeping vacant rentals, seize the opportunity that a short-term stay provides. Open your Kansas City property to renters who stay for a couple of days or weeks.
Short-term stays are profitable since the market is large, especially for tourist-filled locations. The units should also typically be furnished, so renters have all the comfort and convenience while visiting the location.
Subletting allows landlords to collect additional fixed fees, making it a popular rental method. Tenants can accept housemates so they can share the rent dues. You can also increase the rent since additional housemates are added as renters.
Unoccupied rental units can rack up maintenance expenses, so choose to take advantage of websites like Airbnb. Those who search for a place to rent on Airbnb tend to be looking for a short-term residence. Allow these temporary renters to fill up your empty units. Your income will remain constant and you’ll have extra income to spend on cleaning fees, as well as property repairs here and there.
5. Keep the Rental Property in Top Condition
When you properly maintain your Kansas City property, it retains tenants for long-term stay. In this case, you have consistent income flow to add to your real estate portfolio and perform necessary property upgrades. Some of the areas to focus on in your rental should be:
Make the front yard look attractive and welcoming. Install new plants, clear out the pathway and switch on inviting lights in the evening. Trim the shrubs, mow the lawn and remove the weeds. The front area of your rental should present a welcoming appearance.
Spend money on professional cleaning. A clean rental space draws more prospects to sign the leasing agreement. Keeping the property spotless sends a positive message to the renters. It translates to you being a landlord who values your tenants’ comfort and happiness.
As a landlord, it’s important to find new ways to better your rental business. Using a collection of these ideas can drive up your income like never before.
If you have any inquiries regarding this article or other aspects of property management, contact Young Management today! We provide management services from every angle to ensure your rental flourishes.