Decrease your vacancy
When your property is empty you are losing money. Spend a little extra time and find the right long-term tenants. Do not rush. It is ultimately much better to wait for the right tenants.
Cut down rental turn around
Keep your turn around to a minimum. Make sure that you a prepared for the tenants to leave. Have accounts set up on sites like Trademe property. Have photographs ready to go. Be absolutely prepared so the second you find out that your tenants are leaving you are already advertising your property for new tenants.
The goal for any landlord is to find tenants that will take care of your property and at the same time pay rent on time consistently. There are two keys to achieving this goal.
First seems counterintuitive but consider lowering rent for the right tenant. Lower rent for other properties is one of the biggest reasons why tenants will move. It will be worth losing a minor amount each week to keep your tenant happy and not look for other properties. In the long run you will end up making more money there will be less vacancies, less advertising costs per year and if you have good tenants less money spent on repairs and maintenance.
Customer service is the second key point. Provide excellent customer service to the tenants that are looking after your property. Make them feel valued and start to see them as your “customer” rather than a “tenant”. Develop a mutually respectful relationship with your tenants. Next time your tenants are thinking about moving the good relationship you have with them will play a big part in their decision.
Lower rent and a landlord that really takes care of your needs, would you want to move on from that situation?
Increase your rent
We have just told you to keep your rent low but that does not mean that you should never increase your rent. Keep an eye on your community and delicately increase your rent. Make sure your tenants are still getting the best deal from you and the best customer service. Minor incremental rent increases are one of the best ways to increase rent and yet keep your tenants happy.
Being understanding of your tenants and show them respect will go a long way and that should always be your aim as a landlord but remember that you are running a business. If your tenants are consistently paying late introduce a late fee or even better have late fees right of the bat and set the expectation. If you find this difficult think about talking to a property management company. They can make your life a lot easier, sure they will add to your costs but in the end the experience and the skill you get will be well worth it. Getting a third party will also separate you from your tenants. You can keep a good friendly relationship with your tenants and have the property management company to take on the task of collecting the rent, removing you from the financial side of the situation.
Add revenue streams (cleaning fees, landscaping fees & coin operated machines)
If you are renting out multiple family property add in little extras such as a coin operated washing machine for a bit of extra revenue.
If your renting a single property, offer your tenants extra services that they may need. For example, landscaping services. Some tenants would rather pay then to deal with the responsibility. Another great idea is to offer cleaning services. Once your tenant has agreed to extra services you can negotiate with contractors and get them to do it at a lower price than your tenants are paying you, creating a margin for yourself.
Charge tenants a small application fee. You are responsible for all the paper work you should be compensated for it.
Weekend move-in service.
Move in Fees
The weekends are your free time just like everyone else you should get a couple of days off too. If your tenant needs to move in on the weekend charge them a fee for doing so again so you can be compensated for your time.
Lease buyout charges
Consider lease/contract buyout fees. Allow your tenants to move out if they can pay a buyout fee, this fee should be 2-3 months’ worth of rent. If you advertise well, you should be able to get another tenant quickly leaving you with an extra few months of rent per year.
offer your tenants the opportunity to rent appliances from you. For example, tenants may want to pay a few dollars extra to have a TV rather than spending hundreds buying a new one.
A lot of landlords will not allow pets, but this can be an opportunity for you to make a little extra money. A good tenant with a well-trained pet will be more than willing to pay a bit of extra rent to keep their pet.
Paying too much tax
This is probably the last thing most landlords think about but getting good accounting help can save you thousands, adding to your overall profit. A good accountant will help Landlords use their excessive profit to upgrade their property while reducing tax liability. These are just two points accountants can help you. At 93 accounting we offer all year rental property taxation and business support. We already work with many property owners across the north island, we are well experienced in property taxation. Our fees are broken down into easy on the wallet weekly payments for just $20 click here to contact us and to get more out of your rental property.
Written by, Manan Sajjad