Small Changes That Can Improve Home Rental Income

Whether house hacking or renting out an investment property, many homeowners are looking for ways to maximize their profits these days. While location, type of property, and type of rental market will make a huge impact on the type of rent one can get for a property, there are several small changes that can be made to improve rental income potential.

Invest In Energy Efficient Appliances And Fixtures

One of the best ways to increase rental income is by investing in energy-efficient appliances and fixtures. Not only will this save money on monthly utility bills, but it will also make the home more attractive to potential tenants. Energy-efficient appliances and fixtures can be found at most home improvement stores and are relatively easy to install. Plus, there are multiple rebates still available for various energy-efficient fixtures.

Raise Your Rent To Keep Up With Inflation

Keeping up with inflation is essential. Otherwise, rental income starts to lag, simple as that. Raising the rent regularly ensures that rental income keeps pace with the cost of living. However raising the rent too quickly and too high could result in vacancies and turnovers that could end up being surprisingly costly to the bottom line. The best time to raise rent is often in between tenants, as it runs less risk of impacting vacancies. However raising prices to just below market is also a great way to keep long term tenants in place and happy while simultaneously keeping relative pace with market.

Make Simple Improvements

Even minor improvements can make a big difference in how much rent one is able to charge. For example, painting the walls or replacing old carpeting with luxury vinyl tile can give a rental unit a fresh, updated look that will appeal to potential tenants. These improvements can be made relatively cheaply and efficiently, but they can boost the bottom line.

Create A More Sustainable Home

Sustainability is essential for several reasons. It's good for the environment, it can save money, and it's something that more and more renters are looking for in a home. Make several small changes to the rental property to make it more sustainable, and they don't have to be expensive or time-consuming.

One easy way to make a rental more sustainable is to switch to LED light bulbs. They use less energy than traditional incandescent bulbs, saving the tenant money on your electric bill. They also last much longer, so they won't have to be replaced often. Encourage tenants to recycle by providing recycling bins and ensuring that the property has easy access to recycling facilities.

Another way to make a rental more sustainable is water-efficient fixtures such as low-flow showerheads and toilets. These fixtures use less water, so they'll save money on the water bill. They're also better for the environment because they use less water overall. Install solar panels or wind turbines to generate electricity. This is a significant investment but can save a lot of money in the long run. Plus, power outages will hardly be an issue.

Update Bathrooms and Kitchens

One of the most important things to do to increase your rental income is to keep bathrooms and kitchens updated. After all, the kitchen is known as the heart of every home. Outdated fixtures and appliances will not only make the home less attractive to potential renters, but they can also lead to higher maintenance and utility costs. Therefore, investing in simple updates can go a long way toward boosting rental income.

Offer Additional Amenities To Tenants

Another great way to increase rental income is to offer additional services or amenities to tenants. For example, if there’s a vacant unit or space, consider turning it into a storage space or laundry room that tenants can use for an additional fee. Add features like a pet-friendly policy or on-site parking to make the rental property more appealing to potential tenants.  Or offer an additional garden or housekeeping service for an additional fee.

Internet Access

Internet access is becoming more and more an essential amenity for tenants these days, particularly for short term renters - but also for shorter lease renters as well, such as 3-6 month renters. And while many are willing to pay a little extra for fast internet, others may not be so willing. Consider offering high-speed internet as an amenity.

Making even a few small changes to a rental property can significantly impact the bottom line. For example, increasing rental income can offset the cost of any necessary repairs or upgrades. And in the long run, these changes can help make a more profitable investment.