Property Management Secrets: Maximizing Rental Income with Proven Rent Increase Strategies

Lee Blackburn

If you’re working with a Nashville property management company already, rental increases are fairly routine. Your management partner is making recommendations on how to maximize your rental value and when to increase what you’re asking. Whether you’re listing a property for the first time, renewing a lease agreement, or trying to decide what the market demands, maximizing rental income is one of the reasons you hire a professional. 

We have a list of proven rent increase strategies that we’re happy to share with you today. Whether you’re managing on your own, thinking about investing in rental property, or maybe leasing the home you’re currently living in, you’ll need to know how to establish a rental value and when it’s appropriate to increase that rental value. 

Go Green and Introduce Energy Efficiency

Tenants are more environmentally conscious than ever, and when you have a home that’s sustainable and energy efficient, you’re maximizing what you earn by attracting more tenants. You’ll also find it’s easier to earn more income when you can advertise yourself as an environmentally friendly property. Set up a system for recycling. Invest in energy-efficient appliances. Switch out the light bulbs for long-term LED bulbs that will save tenants money on their electric bills. 

Improving the energy efficiency of your investment property will save you money. Utility bills will be lower, not only for tenants when they’re living in your home but also for you during vacancy and turnover periods. The investment you make in energy-efficient lighting, appliances, and systems will boost the rental value of your home and your long-term property value. 

Think about simple efficiency upgrades such as: 

• Double-paned windows
• Additional insulation
• Energy-efficient shower fixtures
• High-efficiency toilets

These upgrades make your property more attractive to modern tenants, increase what you earn, and make a difference in the performance of an older rental home that might have been extremely inefficient when it came to water, electricity, and gas.

Offer Smart Home Technology 

Tenants are looking for technology. Many of them are working from home, and they need access to fast internet speeds and good connections. You’re probably not providing internet services for your tenants, but you can make sure your property is well-positioned to provide good internet speeds and service when the provider shows up. Sometimes, older homes have thicker walls that make it difficult to get good Wi-Fi. You can also provide a list of potential service providers to tenants before they move in, so they have a good frame of reference and starting point. 

Smart home technology is also in high demand. It can be expensive, but if you want to increase your rent, providing at least some of the most popular smart home tech devices and platforms will bring you instant results. Some suggestions:

• Smart Locks

Smart locks can be especially valuable when you’re leasing your home. Self-showing technology is extremely beneficial to tenants and owners because it moves the leasing process along more efficiently. Look for a smart lock that includes a programmable keypad or a lockbox. You can also download an app to unlock doors. Moving through the leasing process quickly will result in less vacancy and more rental income.

Keep these locks in place when tenants move in. They’ll appreciate a digital keypad or a lock that opens by app because it’s less metal for them to carry around. They don’t have to keep track of their keys. 

• Video Doorbells 

Drive through any residential neighborhood in and around Nashville, and you’ll notice video doorbells on many front doors. They’re incredibly popular, and we’re seeing them in multifamily properties as well. This is for safety, security, package tracking, and ease. 

With a video doorbell installed on the front door, tenants will be able to see who is outside of their house and who might be approaching the property. They can download an app and see who is at the front door even when they’re not home.

• Smart Lighting and Thermostats

With smart lighting technology, your tenants can set the lights in the home to timers or control them on their smartphones. Exterior lights can also be motion-activated. This is good for the security of your property and your tenants, and the interior lights will help tenants keep electricity costs down. It’s more intuitive, and a greener way to keep the lights on in your rental home. 

Like lighting, the smart thermostats you install can help tenants conserve energy, reduce their electric bills, and live greener. Smart thermostats can intuitively decide when to cool or heat a room, depending on its temperature and whether anyone is home. These can be programmed for a time of day as well. Settings might change depending on the time of day, and whether it’s a Friday night or a Sunday morning.

Create Some Curb Appeal 

Tenants will make a decision about whether or not to rent your property even before they get in the front door. That’s how important first impressions are. You need to improve your curb appeal if you want to maximize your rental value and attract the best residents. 

Simple aesthetic improvements such as better window treatments, a freshly painted front door, a lawn that’s green and mowed, fresh flowers, and even bushes and trees that are trimmed and hedged can have a huge impact. Replace the mailbox or address numbers. Power wash the home and the driveway and walkways. It will make a noticeable difference. Great curb appeal will make a difference in renting out your property quickly and earning the highest possible rents. 

These are just a few important suggestions. There are other things you can do, such as make some improvements and upgrades, allow pets and collect pet rent and a pet fee, and even start a resident benefits program that will bring in extra revenue. 

Most of what we suggest will depend on your particular property and the tenants who are attracted to it. Contact us at Omni Realtors and Property Management, and we’ll help you increase what you earn.