How to Boost Your Rental Property Income

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As house prices see a sharp rise and interest rates continue to skyrocket, more people in Canada are looking for homes to rent this year. Statistics Canada revealed that the number of households renting their homes grew by 21.5 percent between 2011 and 2021. If you currently own an investment property, you’re in luck.

Investment properties can offer a steady source of income if you make the right choices during and after your purchase. But choosing the ideal property is only half the battle. It’s important for investment property owners to frequently evaluate the value of their property and look for ways to improve them for higher income.

Pick the Right Tenants

The key to ensuring that your rental property income remains consistent is picking the right tenants. Take your time to follow a thorough tenant screening process to improve the quality of tenants and reduce tenant turnover. The purpose of the screening is to determine that the tenants have a decent renting history and are capable of paying their rent on time.

Picking the right tenants ahead of time saves you the hassle of dealing with disputes in the long term. When you find a good tenant, make continuous efforts to improve your home and help them feel comfortable, so you don’t have to go through the process of finding another tenant to replace them in the future.

Upgrade the Property

A rental property can effectively generate income in real time and put more cash back in your pocket if you make minor adjustments. In addition to weekly or monthly property management, consider upgrading the home to boost its value. This will allow you to charge a higher rent or sell the property for a better price in the future.

You may also save money over time if you upgrade certain areas of the home that aren’t fully functional instead of waiting for them to break down. The cost of fixing something while it’s still working can be lower than when it’s broken down. This involves appliances such as dishwashers or water heaters.

Some upgrades that can boost your home’s value are a fresh coat of paint, kitchen or bathroom upgrades, and extra storage space. However, some investments can become costly. Consider getting a short-term online loan to pay for small renovation projects to avoid touching your savings. A licensed online lender like FlexMoney can give you quick access to cash when you need it. Their automated systems help Canadians receive customizable loans that make it easier for them to fulfill their personal needs.

Adjust Rent as Needed

A tenant’s raise can typically be increased once every 12 months, and the percentage you can raise it by may vary depending on the province. Ontario’s rent increase guideline suggests landlords can raise a tenant’s rent by 1.2 percent in 2022.

It’s important to study market conditions and adjust the rent when the current rent isn’t providing you with sufficient income. However, remember that the amount you raise the rent by may lead to your current tenants looking for a different home. Be reasonable with the adjustment so that your tenants aren’t unhappy as you boost your income. Once you’ve decided to adjust the rent, give the tenant a written notice of the rent increase at least 90 days before it takes effect.

From taking the time to screen every tenant to keeping up with market conditions and consumer demand, every step you take counts. Follow this guide to boost your rental property income!