Creative ways to increase rent

[Brandon Knudtson]

Hello all,

I am currently working on finding my first small multifamily property to purchase in the Phoenix, Az area before 2018 is over (house hack). Have been running the numbers on a couple duplexes/4 plexes and looking into how I can potentially increase rents once I would take over a property. I understand this may be different in different areas but was just curious if there was an average/rule of thumb on how much you could increase rents if you supply the units with a washer/dryer for the tenant instead of just having the hookups for them to supply their own. Also, any other creative ways to increase rents would be helpful as well! (Also looking into splitting the water meters so tenants cover their own water bills). Any tips/tricks would be appreciated!

Thank you,

Brandon

[Bob Okenwa]

Hey @Brandon Knudtson,

One of the most reliable ways to increase rent is to give the property a face lift. Pretty much all of the apartment complexes here rebrand when new ownership takes over and the first thing they do is paint the interior and exterior and do some cosmetic upgrades (paint or replace cabinets, new counters). Updating the exterior areas can be done for pretty cheap and increase curb appeal greatly, giving off that fresh new look which can attract tenants quicker and help justify an increase in rent. 

Washer and dryer inclusion may get you an extra $25-$50 a month, but you'd have to check what your competitors are offering as many apartments offer in-home and/or on-site laundry.

You can also consider LED lighting, pet rent, storage rental as other ways to add value and increase rental income.