Maximizing what you earn on your Redondo Beach rental property is always the goal of any investor, and there are ways to do it without raising the rent. While the rental market here remains strong, tenants are feeling pretty maxed out in terms of what they’re paying. Rents have risen dramatically over the last few years, and southern California has always been an expensive market anyway. It’s going to be difficult to raise the rent any higher, especially if your property is covered by local or statewide rent control laws.
We can help you increase your earnings, though, even without a higher rental value.
Here are a few of the things we recommend based on our experience as Redondo Beach property management experts.
Offer Extra Services in Your Redondo Beach Rental
Providing extra and optional services can come with additional income outside of rent. Tenants may be willing to pay for convenience. Options such as these will also increase tenant satisfaction, which is great for retaining those residents.
For example, allowing pets is not only good for your income but likely to reduce vacancy and turnover. Tenants with pets are likely to stay in place longer, especially if they’re having a good rental experience. You can charge a pet fee or pet rent. This is going to maximize what you earn on a property without increasing the tenant’s base rent. Pet-friendly accommodations in a rental home will make a difference as tenants are looking for a new home. Allowing pets can fetch a higher rent and attract responsible tenants who are willing to pay extra for the privilege.
Landlords who offer in-unit laundry are always likely to earn more on their property. It doesn’t have to be in-unit laundry to maximize what you’re earning, though. Installing coin-operated laundry machines in a multi-family property can generate additional revenue.
Consider valet trash services. Tenants may be willing to pay a monthly fee in order to have their trash collected from their front step instead of having to drag it over to a dumpster.
High-speed internet is also a good idea, especially if your property tends to attract a lot of remote workers. Offering a reliable high-speed internet connection as part of the rental package can be a major selling point for remote workers and tech-savvy tenants.
There’s also the lure of good parking. If your property has limited parking, consider renting out spaces to tenants at an additional cost. Again, rent isn’t being raised, but tenants have the option to pay a fee for a specific convenience that may contribute to their rental experience in a positive way.
Make Improvements that Add Value and Attract Quality Residents
Making rental property renovations can boost the value of your investment, attract high-quality tenants, and increase your equity, which helps you maximize your earnings without handing your existing tenants a higher bill. Here are some of the most cost effective upgrades you can make:
- New Floors. Carpet is fine if it’s durable, good quality, and easily cleaned between tenants. However, there are other options that are worth exploring. Consider installing laminate floors or even vinyl. These hard surface flooring options are more popular with tenants because they’re easier to clean and maintain, especially if there are pets in the home. It’s also a better investment for you because you won’t have to change the carpet every few years.
- New and Improved Fixtures. Replace small fixtures and features throughout the house that will upgrade what you’re offering. These are the little things that often deteriorate without landlords noticing. Tenants notice, however. Take a look at drawer and cabinet handles and replace your faucets. Even switch plate covers on your lights and door knobs can make an older home look newer.
- Kitchen Appliances. Kitchen appliances can be expensive, but if the refrigerator, dishwasher, and stove in your property are looking old and worn, you might want to consider an upgrade. Energy efficient model will be extremely attractive to tenants and add value to your property.
Focus on Tenant Retention and Avoid Turnover Costs
When you can retain your good residents, you’ll increase your ROI. There are fewer vacancy and turnover costs to deplete your profits. Retention also provides stability and consistency to your investment, and that should be a goal for every Redondo Beach rental property owner. As you’re trying to decide how to best retain your residents, consider a couple of strategies that we find especially effective:
- Communicate Expectations with Tenants
Tenants become disgruntled when they are surprised by things they didn’t know. Be proactive about communicating with your residents, especially when it comes to expectations and lease requirements. When you’re moving your tenant in, go over all the most pertinent information. Make sure they understand the rent collection policy and how utilities should be handled. They’ll need to know what they’re responsible for in terms of maintenance. You cannot change the lease agreement or include additional rules and restrictions halfway through the lease term. Be consistent, open, and responsive.
Consider providing a welcome packet or an orientation so tenants aren’t unsure about how to request maintenance or ask a question about rent. Check in on tenants every so often – they shouldn’t hear from you only when something is wrong.
Keep communication open and transparent throughout the tenancy. This is going to lead to a positive and pleasant relationship, which increases the likelihood of retaining tenants.
- Provide Responsive Maintenance Services
A lot of data has been gathered, and surveys have been published that say what we already know: tenants are most likely to move when their maintenance requests are not handled promptly or thoroughly. This is a terrible way to lose a tenant. Retain your residents by keeping up with maintenance, even if it’s a routine fix that you don’t think is very important. It’s important to your tenants.
Tenants will notice how quickly you respond, and it will tell them whether or not you value them as a resident. It will also send a signal about how committed you are to providing a safe, habitable, and attractive home. Make pest control a priority. Encourage your tenants to report maintenance issues right away so there aren’t any deferred or unreported problems that threaten to grow into more expensive issues. No one wants to live in a deteriorating property. Keep it in excellent condition and be responsive when repair requests come in.
Re-think Insurance, Contracts, and Financing
One way to increase what you earn is to decrease what you spend. Take a look at the monthly expenses that tend to add up for Redondo Beach rental properties. Review existing insurance policies to make sure you’re getting a good deal. Shop around for better rates or bundles that offer the same coverage at lower costs.
Check out the existing vendor contracts on your property, too. Is it time to search out new proposals from pest control companies, landscapers, and HVAC technicians in order to try and save some money on your routine and preventative maintenance services?
Don’t get complacent when it comes to these services and contracts. When you work with a company over a period of several years, you should be getting their best pricing. If you’re not, look elsewhere and do some comparisons.
Refinancing might be a good idea, especially as interest rates finally beginning to come down a bit after being at record highs. With lower interest rates, refinancing loans could free up cash flow for other investments or improvements.
Reduce maintenance costs where you can. One effective way to do this is to conduct regular inspections and preventive maintenance. By identifying potential issues early on, you can prevent costly repairs down the line, ensuring your property remains in excellent condition without breaking the bank. Bulk purchasing and stocking essential supplies like air filters or light bulbs can also result in significant savings. By maintaining your property proactively, you can prevent unexpected expenses and keep your operational costs low, ultimately maximizing your rental income.
Optimize Energy-Efficiency and Smart Home Tech
Investing in energy-efficient solutions can reduce operational costs, which can indirectly boost your income. Consider the following upgrades:
- LED Lighting. Switching to LED bulbs can significantly reduce electricity usage and last longer than traditional bulbs.
- Smart Thermostats. Installing smart thermostats can help manage heating and cooling costs more effectively.
- Insulation Improvements. Upgrading insulation in attics or exterior walls ensures that properties remain comfortable while minimizing energy consumption.
Incorporating technology into your properties can enhance living experiences and streamline management processes. Ideas include offering smart home features at your Redondo Beach rental property. This might include something simple like a smart lock or a digital keypad. It could be something more complex, such as a video doorbell, which will leave tenants feeling more secure and a bit safer. Online portals that allow for online rental payments and maintenance requests can also minimize your operational costs, promote tenant convenience, and save you both time and money.
By implementing these strategies, you can increase your rental revenue without the need for rent hikes, keeping your properties competitive and attractive to current and potential tenants alike.
Let’s talk about what might work best for your Redondo Beach investment. Contact us at Real Property Management Choice.
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