As a landlord with a rental property in Fort Walton Beach, you’re probably wondering how you can get the most out of your real estate investment. Even though you may be making a profit right now, there are some ways you can increase it.
The underlying solution to maximizing your rental property income is to increase the value of the property. When the property is more valuable, you can raise the rent and ask tenants to pay more.
It makes sense, right? The more valuable the property, the more people are willing to pay to live in it.
Below, we’ve created a list of different ways you can maximize your rental property income simply by managing your expenses and increasing the value of your property in Fort Walton Beach.
Managing a rental property means having expenses to pay each month. These expenses can include property tax, mortgage payments, homeowners and landlord insurance, and any utilities you have included in the rent.
While the cost of each individual expense isn’t outrageous, when it’s added up, it can be quite surprising. So, to maximize your rental income each month, gather all of your expenses and see what you can eliminate or deduct.
From cutting out expenses entirely such as the water bill you wanted to include in the rent for your tenants to refinancing and having a lower mortgage payment each month, there are plenty of ways to cut down on your expenses.
This simple task can significantly optimize your rental income. With each expense you lower or eliminate, you’ll see more money in your pocket.
Add Convenient Amenities
Renters will surely pay extra for convenience. So, add some convenient amenities in your Fort Walton Beach property, and you can raise the rent price.
What do we mean by convenient amenities? Features such as a washer and dryer in the property, air conditioning units, and a dishwasher are all convenient amenities that tenants are willing to pay extra to have.
When considering which amenities to add to the property, ask yourself what would make life more comfortable for your tenant? This will help you decide whether or not you can raise the rent after including it.
Upgrade the Kitchen and Bathroom
A simple upgrade and modernization of the kitchen and bathroom can immensely increase the value of your property in Fort Walton Beach. Renters don’t want to spend their time using old, outdated appliances or using counters that have seen their last days.
This extra investment in your rental property will surely pay off as renters are on the hunt for comfortable accommodations with modern features, especially in the kitchen and bathroom.
Suppose you have a “No Pet Policy,” you’re missing out on a significant number of potential tenants. A whopping 72% of renters own a pet, so you may have a vacant property for longer than you expected if you exclude this group of tenants.
Millennials are another big group of renters you’re missing out on because 75% of millennials have pets and they’re willing to spend a lot of money to care for them.
Allowing pets in your rental not only gives you more tenant options, but you can also ask for a pet deposit. Depending on your preference, this can be refundable or not. Most renters are willing to pay this just to keep their pets with them and live in a home they genuinely enjoy.
Enhance the Curb Appeal
We may not like to admit it, but first impressions really do have a huge impact on our perception of something. The exterior of your rental property is not excluded.
When you enhance the curb appeal and maintain your Fort Walton Beach property so that it looks clean and inviting from the outside, it can increase its value. Simply planting some flowers, maintaining the paint, and fixing cracked sidewalks or steps can do wonders.
Increase Storage Space
One of the biggest problems with rental properties is the lack of storage space for tenants. While there may be closets in the bedrooms, this simply isn’t enough sometimes, especially for long-term tenants.
If possible, increase the storage space in the property. Add some more closets or even carve out space in the property’s basement for your tenant to store seasonal items.
Add a Parking Space
Because a typical parking space is 8-10 feet wide and 18-20 feet long, one of the most frustrating things for tenants is trying to find street parking after a long day at work or being out and about. Many tenants are willing to pay extra if they can have a private or designated parking space on or near the property.
To really maximize your rental income, you can even add the parking space as a separate fee along with the rent. You’ll be surprised at just how many renters will jump on the opportunity.
Brighten Up the Rooms
A bright room can do amazing things when it comes to increasing the value of your property in Fort Walton Beach and your rental income. If your property gets a lot of natural light, make sure to emphasize this and even enhance it if possible.
Properties with a lot of natural light or simply illuminated nicely are often seen as more valuable. Imagine walking into a basement apartment with hardly any light and then walking to an apartment on the tenth floor of a condo building. Which one would you pay more for?
If your property doesn’t have a lot of natural light, boost the luminance with some high-end lightbulbs and other tactics.
Offer an Outdoor Entertainment Space
What is better than sitting outside on a warm summer night with friends enjoying a cocktail and snacking on finger foods? You can create this type of environment for your tenants, and they will surely pay extra for it.
Whether your property has a backyard or even a balcony, an outdoor space for tenants is highly valuable and sought after. This outdoor space is an extension of the living space in your property, so you can raise the rent and charge more for it.
Hire a Property Management Company
Whether you’re an accidental landlord (or even a seasoned one), you most likely don’t have the time or desire to deal with everything involved in property management. Some property management companies here in Fort Walton Beach have a good reputation for providing professional services to both landlords and tenants. Our team at All American Realty & Investment Group prides itself on its high-touch customer service.
When you work with us, you can sit back and relax knowing that your property is being skillfully managed, and your tenants are getting top-notch service. Plus, our team of professionals will help you determine the best rental price and show you how to maximize your monthly rental income.
Contact us today to learn how we can take care of everything, so you don’t have to.