**This article was originally published on December 22, 2017, and was updated on February 17, 2021.
Whether it’s your first time investing in Alexandria rental property or you have been in the industry for decades, many landlords feel that one of the most stressful moments of the job is notifying tenants the rent has increased. However, not all lease alterations need to be dreadful, even if the price goes up. If you want to boost your lease expenses without raising concern, try the following suggestions.
Home Improvements
Initially, when selecting a home, a tenant must decide what suits their need and their finances. Many are frequently willing to pay more if the rental satisfies most or all of their needs. For a current tenant, clarifying or reminding them of the home improvements made since they’ve lived in the home can alleviate their initial concerns on the subject. If recent enhancements meet their needs, your tenants may not show much concern over price climbs if they believe they are getting something in return.
Housing Market
If you are raising the rent because of the housing market, this is another area where transparency is usually well-received. Explain to your tenant that listings located in popular neighborhoods will grow in price over time due to necessity. These costs are often offset by rates falling in surrounding areas. Explaining these natural price increases dignifies your tenant and can cut down on any misconceptions on their side. The choice is ultimately left up to the tenant to decide if the location is worth the increase.
Other Ways to Increase Rental Income
Raising the rent is not your only option to increase your rental income. You can do so by offering additional services to your tenants. One of the most lucrative ways is to make your rental “pet-friendly.” Not only does this attract more tenants to your property, but it also allows you to increase your rental income. In fact, pet lovers are frequently willing to pay an additional “pet rent” if it means being able to keep their beloved animal on the property. Some property owners also charge a separate pet deposit or an extra cleaning fee.
If your property has an unused garage or shed, consider renting them out separately. Many tenants are looking for secure storage space close to home. Renting your unused storage areas can mean extra income in your pocket each month.
Increasing rental income is an inevitable part of becoming a successful landlord in Alexandria. However, how you do, it can affect your reputation for the good or the bad. Alleviate tenant concerns and strengthen your professional relationship by explaining rental increases transparently and offering additional services, like storage or pet rent. When conveying the situation properly, you’ll discover that it’s likely to have the best of both worlds with both fulfilled tenants and additional income. If you would like more information about Real Property Management Optimum’s property management services, contact us online or call us at 612-730-8293 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
