In Memphis, TN, the average 1-bedroom rent is $1,001. Remember that this is just the average, so if you're charging under that, then you might want to rethink things.
However, you can't just raise the rent price to increase your income. This can alienate your current tenants and ward off future ones.
You need to get creative and make some investments first. That way, you can justify a raise in rent (if necessary).
Need some ideas so you don't waste time or money? Then read on for five effective ways to increase your rental income in Memphis, TN.
1. Check the Fair Market Rates
First, make sure you're not severely undercharging for your rental property. You can calculate the fair market rate and adjust accordingly.
If there's a huge discrepancy from the previous numbers, then be transparent with your tenants. For good renters who have been with you a long time, consider giving them a discount so they'll stay.
2. Add Amenities
Is your rental property a no-frills one? Then upgrade it with some amenities!
It'll take some money to add things like a pool, hot tub, gym, clubhouse, etc. However, it'll pay off in no time when you see how many people they attract.
Also, this gives you a reason to raise the rent a little; the money will be spent on upkeep and repairs.
3. Upgrade Appliances and Fixtures
Appliances over a decade old should be replaced. Not only do they look bad, but they're also huge energy guzzlers.
Replacing outdated appliances and fixtures shows your renters that you care about their comfort and the environment. And a bonus is these things will reduce your energy bill and raise your rental income.
4. Start Allowing Pets
Many Americans have pets, and they struggle to find rental properties that allow them. If you don't already, you should make your property pet-friendly, as it'll bring in a whole group of renters.
Not only that, but you can charge a pet deposit and extra pet fee on top of regular rent. All these things will boost your property income noticeably.
5. Allow Monthly Leases
It's easier to deal with yearly leases, but the truth is, many renters need more flexibility with month-to-month leases.
Fill those empty units by allowing monthly leases. Because you're offering more flexibility, it's acceptable to charge more for these short-term leases. So not only are you filling empty spaces, but you're also getting more income per month.
Boost Your Rental Income Effectively
You may already have a sizable rental income, but there's always room for improvement.
By following the tips we've given you in this article, you'll be able to make wise investments that'll pay off in the long run. And as a result, you can build your nest egg with less effort.
If you'd like help managing your property in Memphis, TN, then get in touch with us today.
