Home > Blogs > California > Three Simple Ways To Increase Rental Profits This Summer
205,975 views

John Souerbry's Blog

By John Souerbry | Broker in Palo Alto, CA

Three Simple Ways To Increase Rental Profits This Summer

Three Simple Ways To Increase Rental Profits This SummerSummer is not only when a lot of homes are bought and sold, it’s also when many renters relocate or renew leases.  Rental owners and property managers can use this opportunity to review their rental operations and improve their bottom line.  Here are three simple ways to increase rental profits this summer.

1.    Conduct A Market Rent Analysis

A Market Rent Analysis (MRA) is a simple look at comparable rental properties in your market and the prevailing rents they charge.  Knowing how your property compares in terms of location, features, condition and price will help you determine if rents can be increased in the coming year without affecting your vacancy rate.

2.    Do “Internal Flips”

As tenants vacate this season, use the opportunity to remodel and improve vacated units and make appropriate rent increases.  If your unit is in a multi-family property, do an “internal flip” by giving existing tenants in other units first crack at leasing the updated unit before you advertise it on the open market.  When they move, update their unit and increase the rent on that one, too.

3.    Allow “Non-Performing” Leases To Expire

Owners and property managers should analyze individual tenants to determine if they are helping or hindering profitability of the property.  Tenants that cause excess damage, are habitually late with rent payments, have several NSF checks returned each year, have frequent, verifiable complaints against them or are guilty of constant lease violations are a drain on management resources and profitability.  Rather than simply raising the “non-performing” tenant’s rent to cover extra costs, which is sometimes not possible in rent-control areas, the best thing to do is provide appropriate notice that you will not be renewing their lease.  Make sure the termination is conducted according to all applicable state and local laws.

If you have questions regarding these three simple ways to increase rental profits or need property management services, please drop me a line:  Contact Us.

About us:  California Property Management Services.

--------------------------------------------------------------------------------------------

John A. Souerbry & Associates      (DRE 01370983)

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer