Rental homeowners in Northwest Georgia frequently ask us how to increase their return on investment (ROI).
With over 20 years of property management experience under our belt, we’re able to help them achieve their cash-flow goals.
To help out the wider community of Georgia’s real estate investors, we decided to share 5 ways to get more rent for your Georgia home in this blog post. Keep on reading to find out what they are!
1. Find Ways to Minimize Tenant Turnover
There are higher costs associated with frequent tenant turnover. You have to spend money on marketing, maintenance, and cleanup. Along with that, you also have to spend time showing the vacant unit to prospective tenants.
When your property is occupied with long-term tenants, the time and money you spent trying to find new renters can be avoided.
Below are ways to keep the turnover rate in your Georgia property as low as possible.
Talk with your tenants proactively.
Tenants appreciate landlords who are open to communication and aren’t intimidating. If you make it your goal to ask for feedback, then tenants will feel heard and well cared for.
Cultivating a respectful environment where tenants can easily voice their concerns and issues minimizes conflicts. Demonstrating a responsive and courteous culture creates a light atmosphere for both parties. This makes renting in your property a comfortable experience for your tenants and betters the landlord-tenant relationship.
Offer loyalty incentives to renewing tenants.
A steady income stream is preferable, and this is the benefit offered by tenants who renew their leases. In your property, reward your long-term tenants for staying and choosing your property over the others. A way to show gratitude is to give them rent discounts or forgoing the increase in rent when they renew.
It’s tough to find good and loyal tenants nowadays and vacancies are costly. This additional perk will drive more loyalty resulting in tenants staying longer.
2. Decrease Vacancy in Your Property
Vacancies mean lesser income and not maximizing earning opportunities for your rental property in Northwest Georgia.
If you’re still making mortgage payments, then vacancies will be more impactful on your bottom-line. This is because you’ll have an even larger sum to pay off at the end of each month. There are steps to reduce this situation.
Provide better amenities for your tenants.
Providing amenities that would make your tenants’ lives more convenient should be one of your main priorities as a landlord.
Some of the amenities could include updated appliances, wi-fi ready connection, or even a proper garbage disposal system. Nowadays, where most things are instant, tenants expect a degree of ease in living. If you focus on adding more comfort and conveniences in their lives, they may be more inclined to rent long-term rather than short-term.
Another common reason tenants move out is that they believe their requests go unheard.
If there’s something that needs fixing, repairs should be done swiftly. If you address your tenants’ concerns, it shows that you care about them. Aside from a landlord’s duty to handle the repairs, this also translates to professionalism. When they pay you the full rent each month, it means they expect everything to be run smoothly.
3. Increase Rent Using a Strategic Method
There’s a balance between raising rent and keeping your tenants. It costs money for tenants to move and it also costs them time to look for other rental properties.
Try to find ways to increase the rent in your home without sacrificing your property’s value. Remain competitive and make sure to conduct proper research of the market prices of properties within your area.
Be careful not to raise more than 8%.
We know that inflation and costs of living can increase every year. However, raising the property rent price 10% or higher might be too drastic. A sudden spike in the rental price after a few years would generate a worse reaction rather than a gradual incremental increase.
Inform tenants about the plans for improvements.
You can communicate with your tenants about the rising costs of utilities. You can also tell them that the increase is to offset the costs of replacing amenities.
Conduct discussions and solicit tenant feedback for you to make improvements.
4. Think of Ways to Add Revenue Streams
For your Georgia rental property, expand your ways of creating more income by looking for other opportunities. Some tenants would be willing to pay extra for additional services.
Here are some suggestions to try to earn more money without having to constantly adjust your rental fees.
Today, pet ownership is popular and offers companionship to homeowners. Allowing your tenants to have pets in your rental property is a way for you to collect a monthly pet rent on top of the property rent.
You can ask for a pet deposit, a refundable fee paid by the tenant before they move in property. You can also charge a pet fee, a one-time admission price to your rental property.
Add a coin-operated laundry.
One of the amenities you can offer your tenants is a laundry facility in your property. Tenants will be happy, and you’ll generate more income while upping your customer service, too. This is a win-win situation for you and your tenants
5. Enforce Late Rent Payment Penalties and Exercise Diligence on Collection
It’s recommended to create a solid rental collection system for your Georgia property. This would be to facilitate the process of monitoring tenant payments.
You should write a lease agreement stipulating the monthly rental due date, the day when rent is overdue, and the late fees that will be charged. Being diligent in rental and late fee collections will ensure your income is consistent.
Collect penalties when rent is late.
When you enforce penalties, it forces the tenant to pay on time to avoid the extra charges. Penalties can be computed as a percentage of the fixed fee. It can also be computed daily.
Be firm and professional.
Notify your tenant of their past due rental payment. Set up a meeting immediately to come up with the best course of action for both parties. Be firm and follow the correct procedure before resorting to an eviction.