Creative Strategies to Maximize Your Rental Income

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11 Jan 2022
5 min read
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In the world of real estate investment, the pursuit of maximum returns is an art. As a real estate investor, your power lies not just in property ownership but in your ability to set the rental price—a key lever for controlling and optimizing returns.

Imagine the possibilities: with each uptick in ROI per property, you can channel those profits into expanding your portfolio or enjoy the luxury of additional monthly passive income. 

The secret lies in injecting creativity into every property you own. Delve into the strategies below to charge premium rents, transforming your properties into lucrative assets.

Elevate Your Property’s Appeal 

One of the most effective strategies for commanding higher rents is enhancing the appeal of your property. Consider targeted renovations or upgrades that align with tenant expectations. Modern amenities, energy-efficient features, or stylish interior designs not only increase your property value - they help you justify premium rental rates. 

Also, don’t underestimate the power of offering a visually appealing home that tenants aren’t ashamed to share on social media. Having an “Instagram-worthy” home is an important factor for Millennials.  

Smart Technology Integration 

Embrace the digital era by incorporating smart technology into your rental property. From smart thermostats to keyless entry systems, these additions not only enhance the tenant experience but also provide a modern, upscale appeal. Tenants are often willing to pay a premium for the convenience and security that smart technology brings to their living spaces.

In fact, some property insurance companies offer discounts related to the integration of smart technology. So not only would you benefit from increasing your rental price, you could also decrease your expenses. That’s the perfect formula for more profits in your pocket. 

Include Unique Amenities  

Differentiate your property and demand higher rents by offering unique amenities that stand out in the market. Whether it's a rooftop garden, a co-working space, or pet-friendly facilities, these distinctive features create a competitive edge. Tenants are often willing to pay more for a rental property that goes beyond the standard offerings, providing them with a lifestyle rather than just a place to live.

When considering which amenities to add to your property, keep the target audience of your property in mind. For instance, a 3-bedroom single family home may not be as interested in a party deck as they would in a fenced in yard for children or dogs to play safely. 

Create a Furnished, Turn-Key Experience  

While traditional rentals come unfurnished, the trend of furnished properties is gaining momentum. Consider furnishing your rental units with stylish, high-quality furniture. This turnkey approach appeals to tenants seeking convenience and aesthetics, allowing you to charge a premium for the fully furnished experience.

Consider Offering Your Property as a Short-Term Rental 

Especially if you are going to put the effort into furnishing your rental, you could consider changing it from a long-term rental to a short-term rental. In some cases, you could earn as much rent in one week with a short-term rental as you could in one month with a long-term rental. Of course, all of this depends on your local market and could be impacted by seasonality. To help determine the viability of your property as a short-term rental, be sure to do research with a reliable resource like AirDNA.  

Get Started with the Right Financing Partner 

One of the best strategies to maximize income is to first negotiate the best rental property financing terms. Whether you're purchasing your first rental property or looking to expand your existing portfolio, Temple View Capital offers DSCR loan programs that can be tailored to fit your unique situation.

Contact our team today, and we’ll put a game plan together for the purchase of your next real estate investment. As a private portfolio lender built by real estate investors, for real estate investors, we’re here to help you succeed.