How do you get more income from your rental properties? Raising the rent comes to mind, but there are many other ways.
What if you want better cash flow from your rental properties? You can't just raise the rents arbitrarily. If tenants leave, income goes down, not up. There are other ways, though, including the ones listed below which may be applicable to your properties.
1. Install coin-operated washing machines. Even if you don't have the money to do this yourself, you may find a company that will do it for you, and share the income with you. Alternatively fit a domestic appliance coin box which can be adapted to most machines. A Particularly good idea for "Houses of Multiple Occupation (HMO)
2. Rent extra parking space. If your apartment comes with a garage, dont include it in the rent but offer it as an extra, if the ingoing Tenant doesn't want it then Let it seperately to someone else.
3. Raise the rent. Okay, we did dismiss ARBITRARY rent hikes as a cash-flow solution, but check on the rates for similar properties. Are you renting at below-market values?
4. Rent storage sheds. Especially if your apartments are small, your Tenants may need a place to store their things. Don't let them spend their money elsewhere. Put a few sheds on the property if you have the space to do so.
5. Enforce late fees. It is perfectly fair to have a fee for late payment of rent, and guess what? Those who are chronically late usually don't even mind - they just don't look at these things the same way as others.
6. Offer improvements for rent increases. If it's worth £25 more monthly rent to a tenant, install that dishwasher they asked for. Even on a credit card you'll pay less than that per month for it.
7. Install vending machines. If your rental properties are large enough such as "houses of multiple occupation", companies will do this for you for free, and give you a share of the income.
8. Rent by the room. A four-bedroom house might make more money if you include all the utilities and rent by the bedroom. This has made a lot of fortunes for investors in University towns. It does mean a lot of management however and make yourself aware of the different regulations with regard to lodgers and "HMO's".
9. Rent-to-own sale if you would consider selling in the future!. Usually there's a non-refundable deposit, and higher than market rents in these deals. When Tenants change their minds, as they often do, you get the deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get the better cash flow as you repeat the process.
10. Reduce expenses. Every pound of expense you cut goes straight to the bottom line. List every expense of your rental properties such as insurance and look at them one at a time. How can you reduce them?
Hopefully this has given you some ideas to work with and help you to successfully let your properties.
"Your local lettings experts, our advice is free but our knowledge is priceless"
I have been in
and around the Hertfordshire property market for over 25 years, starting
as an estate agent in the county town of Hertford and now running a
successful lettings and property management company based in Stanstead
Abbotts. I have let and managed property all over Hertfordshire from the
area that I currently work to Wheathampstead where I owned and managed a
lettings & estate agents to Watford and surrounding areas where my
company acted as a marketing agent for one of the largest property
management companies in the country”
Adrian Fallart - Director - Property File
