There are several ways to get more rent from your rental property. If you have a home, turning the house into an income property is an excellent way to earn passive income. The money you earn can help cover your living expenses, or help plan your retirement. But to earn the most from an income property, you need to get the most rent for the property. Here are seven ways to get more rent from your property.
Renovating or updating your kitchen is one of many ways to get more rent for your property. Even if the person isn't buying the home, he or she may prefer a kitchen with modern appliances and a modern decor. If your kitchen is dated or old, the person might pass on the property and look elsewhere. This can result in your property sitting on the rental market for several months.
Similar to kitchens, bathrooms make a big difference when people are looking for a house to rent. At the end of the day, they want to feel comfortable in the house. Therefore, consider switching out your vanity for a new one, replacing the light fixtures and towel racks, choosing neutral tones and replacing the flooring.
First impressions are huge in the rental world. It doesn't matter how the inside of your rental property looks, because if the outside is trashed, some renters will turn away and seek other properties. You don't have to spend a lot to improve your curb appeal. Sometimes, it’s simply a matter of trimming trees and shrubbery, and keeping your lawn neat and trimmed. Also, power wash the house, and paint shutters and doors.
When deciding whether to rent a house, many people will look inside closets and check the storage space in the home. And unfortunately, if there isn't a lot of storage, these renters may look elsewhere. To make your house appealing, install shelves in your closets, garage or basement to maximize the storage space. The more available space, the more a renter will pay.
It's also important for potential renters to visualize themselves and their families living inside the home. If you can't afford a complete remodel, staging the home can leave a lasting impression and help you get more rent for the house. For example, you can remove large items from the home to free up space. Installing mirrors on the wall reflects light through the house, which helps maximize the square footage.
If the home has a basement, consider finishing the space and adding more square footage to your home. A basement can be converted into extra bedrooms, a family room or a game room. And the more living space available, the more rent you can charge.
To generate more income from your rental property, refinance the mortgage to see if you can qualify for a better interest rate. A lower rate also drops the mortgage payment, which can increase your rental income. For example, if your mortgage payment drops from $1,500 to $1,200 after refinancing, and you charge a renter $1,400/month, that's $200 a month in rental income.
Whether you're an intentional or an accidental landlord, renting out your home can increases your monthly income. But for this to happen, you’ll need to improve the property and charge an amount that’s more than the mortgage payment. What other ways can you get more for a rental property?