How can you earn more money from your Philadelphia investment property?
In the current market, you’re already seeing rising rental rates and higher home values. But, your expenses are going up as well. It’s not always easy to increase your revenue, even with stable rents.
We have some cost effective ideas for increasing what you earn on your Philadelphia rental property, and we’re sharing those with you today.
Start with Upgrades and Improvements
Most of the Philadelphia tenants you are hoping to attract will have high standards for the rental homes they choose. Finding and retaining high quality tenants is an excellent way to increase your revenue. Stable, responsible residents always contribute to what you earn. They pay rent on time and take care of your property.
Attract these tenants with a rental property that’s modern and renovated. You’ll be more attractive to good residents and you’ll also be able to charge more in rent.
Here are some of the cost effective upgrades and improvements you can make when you want to earn more on your property:
- Kitchen renovations increase ROI
Kitchens are especially important to tenants, and your first step is to make sure everything matches aesthetically. When the finishes on your oven, stove, fridge, and dishwasher are the same, the kitchen will look modern and well-designed. If the appliances are old or you’ve had to repair them more than once, consider installing new ones. You don’t necessarily have to buy high-end models, but something energy-efficient will be a great selling point when you’re marketing your property, and stainless appliances will likely increase what you can charge in rent.
There’s probably no need to install new cabinets and counters, but make sure they look clean, modern, and welcoming. You can sand and paint the cupboards to give them new life and add shiny new drawer pulls and faucets. If your counters are stained or chipped, replace them with something durable. Update the lighting in your kitchen and consider minor cosmetic improvements like backsplash tiles.
- Fresh paint
A fresh coat of paint is an easy upgrade and should be made whenever possible. No one wants to move into a property that has chipped, worn, stained, or scratched walls. Invest in a complete paint job instead of touch-up work. It will make your property look new and fresh, which leads to better rents.
- Hard surface flooring
A recent flooring survey found that tenants prefer hard surface flooring to carpet.
This is no surprise. Hardwood, tile, or laminate flooring is easier to keep clean. It doesn’t trap odors and stains and it’s actually easier for you to clean and maintain during turnovers. Trade in that carpet for hard surface flooring. The investment will result in higher rental values for your investment property.
Adjust Your Rental Value to Reflect the Philadelphia Market
You could be earning more in rent every month.
The market is competitive for tenants, especially as demand remains high and inventory still struggles to keep up. With interest rates rising again, the dream of homeownership is likely further out of reach for tenants who might want to buy a home, but find themselves priced out of the market.
Your rents should have risen in the past year, and if they didn’t, it’s time to bring them up to market.
Take a careful look at what other homes similar to yours are renting for. Make sure you’re priced competitively and also profitably.
At lease renewal time, you want to retain your tenants. That doesn’t mean you shouldn’t increase your rents. Vacancy rates are low right now, and the tenants you have in place understand how expensive the market is. They’ll be willing to stay when they’re having a good rental experience, even if rents go up for them.
Increase your rent at renewal time, but keep that increase just below the market rents for homes like yours. This will incentivize your tenants to stay in place, protecting you from vacancy and turnover costs. You’ll also earn more money every month, driving up your revenue in the short term and your ROI in the long term.
Welcome Pets into your Philadelphia Rental Property
Are you renting out a pet-friendly home?
You should be, if you want to increase your revenue. This is perhaps one of the easiest ways to bring in more rent.
When you allow pets, you can charge a pet fee before your tenant moves in. This pet fee is non-refundable, so you can use it to repair any damage that the pet causes or to clean up any messes and odors that the pet leaves behind. But, you may not need to dip into that fund in order to repair or clean your property. The majority of pets are likely to be clean and well-behaved.
You still get to keep the non-refundable pet fee.
When you charge $200 or $300 per pet, that’s extra cash that you earn simply by allowing tenants to move in with their furry family members.
You can also charge pet rent. Tenants are willing to pay between $25 and $50 every month per pet for the privilege of living with them. That’s a lot of extra revenue over the course of your lease agreement, especially if your tenants renew.