If you own a coveted Baltimore County rental property, chances are you are commanding an exceptional rent amount each month.
Thanks in large part to Towson University, and the peaceful serenity of the suburbs, mixed with the nearby excitement of the city, having an investment property in the nearby Towson region is one of the easiest ways to become a successful property owner.
But what if there were things you could do to increase your already-impressive rental property income?
It should come as no surprise that property owners want to maximize their rental property income, and keep Baltimore County property management costs as low as possible.
However, unless you are taking proactive steps towards increasing your rental property income, chances are you will remain in the same place you are today for the rest of your career as a landlord.
Luckily, we have some practical ways you can generate additional income from an already profitable Townson rental property.
Ways to Boost Revenue on Your Townson Rental Property Income
1. Consider a Rent Increase
Although a seemingly obvious solution to making more money as a property owner, increasing the rent on your Baltimore County investment property is not as easy as it sounds.
After all, if you choose to raise the rent on current tenants, or advertise a vacant property at a high rent rate, you can’t go too far – remember, you must remain competitive in order to succeed.
Before raising the rent on your property, make sure to research current market trends in your particular area, compare similar properties, and find out what they are leasing for.
Also, capitalize on upgrades, amenities, and special features your rental property offers prospective tenants.
2. Aim for “Perfect” Tenants
The “perfect” tenant may not actually exist in the real world.
However, with proper tenant screening, especially if conducted by your Baltimore County property management company, you can place a tenant in your property that is as close to perfect as anyone can get.
In addition, catering to your model tenant type will help you to narrow your tenant pool significantly.
Here are some tips for finding out what your ideal tenant looks like:
- Research the demographics of the area that your property is in
- Find out information about employment rates and job opportunities
- Evaluate the location and the lifestyle of nearby people
- Match your property’s amenities to the type of families that are likely to move in
A high-quality tenant that is seeking what you have to offer will net you higher rent rates than ever before, and also increase your chances of having a long-term tenant that cares for your property.
All of these things will help you earn more income in the long run.
3. Implement a Pet Fee
If you are impartial to allowing pets in your Towson rental property, but are looking for an easy way to increase your monthly income, consider adding an extra pet rent provision to your lease agreement.
Requiring even an additional $25 per month for a pet adds up over the course of a lease term.
And, if you follow a strict tenant screening process, you should be placing high quality tenants in your property, which usually means better-behaved pets.
Quality tenants typically have good pets.
And, those with pets usually love them enough to be willing to pay an extra rent fee each month to have them in a property.
4. Prorate Months
Though a vacating tenant usually leaves your rental property at the end of the month, ask yourself this: how often are you able to turn a vacant property in less than one day?
Getting your property rent-ready in a matter of days is often not possible.
It is likely to take a week or so for you to make your Towson rental property sparkling for the next tenants that are moving in.
This is especially true if your property needs things like new carpet, a fresh coat of paint, and a deep cleaning.
And don’t forget any maintenance or repair issues that need addressing.
One way to get around having to wait for tenants to move in at the start of the next month (essentially leaving your rental vacant for one month), is to consider prorating the last two weeks of the month, and allowing your new tenants to move in “early.”
This lets you collect an additional half-month’s worth of rent, which of course will add to your overall annual income.
5. Add a Lease Termination Fee
If your tenant wants to break their lease early, there isn’t much you can do about it.
However, by implementing a lease termination clause in your lease agreement, you can at least recoup a few months worth of rent to make up for your inevitable loss.
Try charging an amount equal to two months of rent in the case of an early lease termination.
Although this doesn’t necessarily pad your rental income for the year, it does add to your bottom line in the case a tenant decides to leave.
6. Furnish Your Rental Property
Though this option may not be for everyone, furnishing your Baltimore County rental property is no doubt an excellent way to garner higher rents from tenants, and thus boost your annual income.
Offering a furnished property is enticing to those that are moving from other states, those renting for the first time, or those looking for short-term leases.
The ease of moving into a rental property that is already fully furnished is priceless to some tenants.
And the best part is, property owners such as yourself are bound to benefit from the added monthly rent amount you charge tenants for providing them with a fully furnished home.
6. Enact Roommate Fees
The topic of roommates is a tough one when it comes to your rental property.
At the start of the lease term, you may think that you have placed two adults into your rental property for a set amount of rent each month.
Then, as a few months pass, you may be surprised to find out that the two tenants have now grown into three tenants.
As a way to boost your rental income, and ensure your rental property does not become a hub for all friends needing a place to “crash” for a while, consider implementing roommate, or extra occupant, fees.
Run a background check on the new person, update the lease agreement to include the additional occupant, and charge a nominal fee of $50 per month extra.
7. Employ a Baltimore County Property Management Company
The services that an experienced property management company can offer Towson rental property owners far outweigh the management fees that are charged.
This is especially true if you go with Baltimore’s best property management team, Bay Management Group.
With the lowest management fees in the area, Bay Management Group offers a whole suite of property management services designed to ease the hassle of self-managing your rental, reduce the headaches that come from managing tenants, and of course, save you money in the long run.
Take for instance the following benefits:
- Aggressive advertisement of vacant property for the fastest tenant placement possible
- Thorough tenant screening
- 24/7 on-call maintenance team of highly qualified, timely, and affordable contractors
- Enactment of security deposits, application fees, pet fees, and more
- Strict rent collection policies
- Proper move-in, move-out, and seasonal inspections
- 12-month tenant warranty and free re-lease of your property, should a tenant be evicted within the first 12 months of leasing from you
As you can see, all of these management services aim to save you money – via placing a high paying tenant in your property as quickly as possible, reducing out of pocket costs thanks to proactive maintenance of your property, and collecting of additional rental income in the form of fees, if applicable.
In the end, Bay Management Group strives to garner you the most money each month as possible, while still being fair to tenants.
If you own rental property in the Towson area, and are looking for ways to increase your rental income, get in touch with Bay Management Group today.
We can help you maximize your rental income, minimize your stress, and ensure that you are making the most money possible each month from your investment.