Do you own a rental property? Or are you thinking of owning one? Ever worry about how to increase your profits without losing renters? You can make more money every month without raising the rent! Now your thinking about it, aren’t you? Let me give you just a few suggestions that may help increase your profit each month without losing those renters.
Do you have a washer and dryer hookup? Most renters don’t have the money to buy a washer and dryer, so they end up driving to the local coin-op. How about contract with a local coin-op to install them in each of your units and split the profit? It is a win-win for everyone involved. With this suggestion there is also a benefit that most owners of rental property haven’t thought about, that I suggest to all my income property owners. By offering this service, you have it written in to the rental contract that you will enter the home once a month and collect the change from the machine. By doing this you can also do a visual inspection of the unit every month. This will help keep illegal activity to a minimum if not stop it all together.
How about a rent to own situation? This is a great profit center for a lot of owners! The main reason this is such a great deal for investment property owners is that most rent to own buyers can not get regular financing through a bank or lending institution. But by offering them a chance to purchase with a NON-REFUNDABLE deposit you can charge them a higher rent and about 70% the time after just a few years they change their minds and move on. You get the deposit and also the benefit of higher rents for the time they were there.
Always think outside the box when it comes to getting more from your rental properties. There are always ways to make more money that do not involve charging more rent. Ask your Realtor about ideas they may use or have heard being used on other rental properties in the area.
Todd Clark – broker
Kastings & Associates