08/05/2016
Seven ways to make more money on your multi-family rental property
We are always looking to increase revenue where we can, and when it comes to renting out a multi-family property there are several ways we can maximise our potential earnings and decrease our vacancies.
1. Think about your ‘target tenant’
If you’re in a university area, then your target tenants will probably be students. If you’re living near schools then young families may be your target tenants. It is important to evaluate the area you are in to get a proper gauge of how you should advertise and market your rental property.
2. Research competitor pricing
If you are much more expensive than others offering something similar, you’re going to lose tenants. Research what others are charging and try to stick to this price as much as you can. If you can afford to go a little bit lower than competitors, it will benefit you in the long run.
3. Increase occupancy
There are a few ways to maximise the occupancy in your multi-family property. Market and advertise any vacancies as much as possible, and as soon as possible. The key is to advertise as soon as you find out about any tenants moving out of your property. This will keep a constant turnover of tenants and income.
4. Look for long-term tenants
Although turnover is good for maximising occupancy, it also costs money to keep the property up to the standard for a new rental. If you can long-term renters then they will benefit you in reducing the costs of turnovers.
5. Pay attention to late rent
If you’re lenient on late rent then tenants will take advantage. Make sure you are vigilant on late rent and give fines for late rent payment. This will keep your income steady and reliable.
6. Increase rent carefully
Randomly increasing rent will annoy tenants and push them towards moving out. If you want to increase rent, do so carefully. Time the increase with a lease renewal and perhaps offer something extra. Schedule a repaint of the exterior, replace the car park, or install extras and use this as the reason that rent must increase. This gives them something in return for the increased rent, and gives you a greater income.
7. Offer extras
As I said above, extras make tenants believe they are getting more for their money. They can also indirectly increase your revenue. Offer things such as a paid gym, or a laundrette. Things like this will increase revenue whilst giving your tenants extra services, and will probably encourage them to stay put as well.
