As a rental property owner, do you know you can increase revenue from rental property amenities as well? Well, if you don’t know, you are not the only rental property owner! Most people often assume that they can derive revenue from the rental property itself only, but the fact is if you have desirable amenities, you can create a sound revenue stream from them. Over the last few years, there has been a fair rise in the share of amenities revenues in the rental property segment. The golden rule followed by property developers and investors – if an amenity improves or increase property or rental value, invest in it! Here are 5 ways landlords or rental property owners can drive revenue.
1. Quality over Quantity
Every individual’s standard of living varies. A student’s expectations of rental property and needs are completely different from a family living in the rental property. Young professionals might be looking for a fitness center or swimming pool in the rental property while for a family a nearby park or school for children would likely be more important. Therefore it’s important to identify a segment of market and focus on fulfilling the needs of that segment. Once you have a clear target audience in mind, it is easier to offer specific amenities to attract and keep those target segment. Here a property management company can help do an unbiased assessment of available amenities in your rental property and community to market your rental property to right target audience. Focusing on quality over quality can go a long way to drive additional revenue streams from your rental property.
2. Right Pricing Matters
The property management company managing the rental property is often responsible to set the right price for the property and its amenities. With years of rental data and experience they can price the rental property and its amenities more accurately than new landlords. For example, if your property has a covered double garage or a decent basement it is possible to get higher rental value from your rental property than the one that only has single garage or a street parking stall. The recent rental data also allows property managers to understand the actual pricing of the amenities they are providing to the tenants.
3. Keep with Social Trends
Socioeconomic trends also factor in. Recent life style trends in metro – Cities like Calgary and other major cities suggests that millennial like to be close to the business and work centers, like to walk or bike to work instead of driving long to work. Many are even willing to pay for these perks. Rent in quality rental properties in Calgary downtown are stronger despite a ton of inventory in apartment and condo market clearly outlining that amenity rich properties attract and retain quality tenants, experienced landlords and good property management companies in Calgary know this simple fact!
4. Measure For Success
For property investors a rental property only make sense if it can provide a level of CAP rate or return on investment. So it is important that the rental property is leased throughout the year and leases are renewed on time, to ensure this landlord or property management company must ensure the property rent is in line with market demands for comparable rental properties in that micro-market. Most amenities add great value to the property, but they can cost if not a right fit with target renter segment. With online services such as “Estimate Your Property Rent” offered by few Property Management companies in Calgary, new landlords can also take advantage to price their rental property and associated amenities competitively.
5. Assess and Upgrade Periodically
Young and professional tenant expect the rental property to have modern and upgraded amenities in the rental property. Most may even be willing to pay a bit more for upgrades like new washers, dryers, premium hardwood floors and granite counter tops. While for others these would persuade them to stick to the rentals therefore it may not be a bad idea to periodically assess the amenities in your rental property or multi-family building to make sure your property is updated and current to attract and retain good paying tenants as well as keep them happy with their rental experience.
To summarize, for improving your rental property revenue stream, it’s important that you identify your renter segment appropriately to suite with your property amenities and market them to attract the right tenants. Pricing your rental property accurately in line with market demand can help attract tenant interest. Take advantage of online professional services such as Estimate My Property Rental if you don’t know what your rental property and associated amenities worth currently is. Lastly make sure that your property features and amenities are periodically assessed and upgraded to keep up with modern trends.