Compared to other investment options like stocks and bonds, a rental property is a guaranteed choice for earning passive income. Provided you have properly screened your tenants, you should expect income every month.
But, after years of receiving fixed rent as per the lease agreement, you might feel the urge to increase the rent. After all, who doesn’t want to earn more from their rental property? However, this may be unappealing to your tenants, leading to some terminating their lease.
Is there a way around this? Can you earn more from your rental property without increasing your rent? The team from East Bay Property Management has put together a few tips to help you out.
Implementing Penalties And Late Rental Payment Dues
As a landlord, it is important that you receive rent on time, as there are payments that you are required to make to keep the rental in functioning order.If you have a lease agreement in place, you should have a clause that explicitly states the date of rental payment and the consequences of late payment. Many landlords, however, don’t apply these rules to their rentals and miss out on extra income.
To properly collect late penalties and dues, you will need an effective system in place that keeps accurate records of payments from tenants.
This emphasizes the need to have an experienced property management company prepare a detailed lease agreement for your needs and also for rental collection.
Pet Fees For ‘Purr-rents’
Almost half of the households in California have at least one pet. Allowing pets in your rental property provides a much larger tenant pool. It is proven that pets better our mental health and help make a house feel like a home. This is a guaranteed way to help keep your tenants happier in your rental.
Have you implemented pet fees for the pet owners on your property? While pet owners are known for being high-quality tenants, there can be a risk of property damage when allowing pets in your rental.
Consider charging the pet owners either a pet rent or deposit. This provides insurance against possible damage and also increases the amount of cash in your pocket every month. Charging these fees work similarly to normal rent. Pet rent is charged every month and can vary based on a number of factors. In California, the average monthly pet rent ranges from $10 to $50 per pet.
A pet deposit is a one-time deposit. Keep in mind that in California, your pet deposit cannot exceed two months rent, or three months rent if your property is furnished.
Create Rapport With Businesses In Your Neighborhood
If you have some experience in self-property management, you will agree that the maintenance of your property is an essential factor in property leasing. You will be required to inspect your property, identify defects, and perform repairs on the fittings, appliances, and other amenities.
To minimize the cost of these repairs, build relationships with professional maintenance crews in the neighborhood. You can create strong connections with reputable service providers. By sending all your maintenance requests their way, they can guarantee you a shorter response time and possible discounts on every maintenance problem.
If you are new to investing in California, East Bay Property Management has all the connections you need for your property to be a success.
Such companies have already established relationships with maintenance contractors in the area. With them handling your management, you can be guaranteed extra money in your bank account.
Short-term Vacation Rentals
You may have heard of Airbnb, Expedia, or Booking.com. These short-term vacation rental platforms have revolutionized the leasing of property by offering landlords an opportunity to earn more rental income compared to the traditional long-term leasing option.
You may consider turning your rental property into a vacation rental and enjoy the benefits of having a short-term rental property. Short-term rentals allow for changes to the price of rent, less wear and tear over time, and easier access to the unit for property maintenance.
Another consideration is using your rental as a short-term vacation property if you are ever in-between long-term tenants.
Bottom Line
From the information above, you may feel in over your head. Truth be told, the property industry is a technical field. For you to enjoy the full benefits of ownership and leasing, you might need the help of an experienced hand with decades of experience in the industry. If you are looking to invest in California, call upon the leading service provider in the region.
Here at East Bay Property Management, we are a locally owned and operated full-service property management company, known for our professional advice and comprehensive property solutions. As the premier company, we offer a wide range of services. Whether you need rent collection, tenant screening, or maintenance of your rental property, get in touch with us.
We are ready and willing to offer sound advice that will guide your investment in California real estate.
