Rents are pretty high in Marin, California, thanks to the well-qualified pool of tenants looking for homes, the high demand, and the limited supply. This is a desirable place to live, and that means everyone wants to live here.
Even with rents on the high end, there’s always room to bring in a little more income when we’re talking about your rental property. To maximize what you earn on your investment, you need to make sure you’re providing what your residents want.
Here are some of our best pricing tips as Marin property managers who are constantly evaluating the market and talking to residents about what they want and need in a rental home. These are the best ways we know to maximize your rental income.
Marin Rental Property Pricing Reflect Upgrades and Updates
One thing that will increase your rental value is renovation.
A modern, updated property will always earn more in rent than a home that’s old, falling apart, and practically begging for a fresh coat of paint.
As you think about how to price your Marin, CA property for the most profit, consider the updates that will impact your rental value the most. These are likely to be:
- Energy-efficient appliances and LED lighting. Tenants in Marin are more and more concerned with sustainable living. They want to live in a greener and more environmentally responsible home. You can meet that need while increasing your rents. Low-flow toilets and shower heads are great installations. Replace old appliances with newer models that carry the Energy Star rating. Consider eco-friendly landscaping and materials. This will require a small investment, but you’ll maximize what you earn and attract higher quality tenants.
- Smart home technology. Tenants are looking for video doorbells and smart thermostats. They want to live in a modern, wireless home where everything is connected and intuitive. Be willing to make these upgrades and to allow your tenants to incorporate some of their own smart home tech into you property when they move in. This will keep our rental values higher.
- Hard surface flooring. It’s hard to convince a tenant that carpet is healthy and attractive. It may be fine in the bedrooms, but in living rooms, dining areas, and communal spaces, consider replacing carpet with tile, wood, or some laminate type of hard surface flooring. You can ask for higher rents, and you’ll likely attract tenants who don’t like dust, dirt, and allergens gathering carpet fibers.
Making updates and upgrades is the easiest and most cost-effective way to increase what you earn in rent. Be strategic about where you improve, and your income will reflect your effort.
Make Reasonable Rental Increases to Decrease Turnover
Pricing your property at renewal time requires you to study the market, consider the cost of turnover, and propose a new rent to your tenants that’s both fair and profitable. You don’t want to chase good tenants out the door. Nothing will defeat your income and your ROI like a long vacancy or expensive turnover costs. So, focus on retention.
Tenant retention is an important part of your investment property’s success. When residents renew their lease agreements, it creates more stability for your property, and stable properties earn more income. You also avoid a vacancy. You eliminate that expensive turnover process.
Moving one tenant out and another tenant in takes a lot of time and it also requires a lot of money. You’ll likely have to invest in new paint. You might have to clean the carpets or replace them entirely. You’ll want to make upgrades and updates that keep your property competitive on the Marin rental market. You’ll have to pay for minor maintenance issues and potentially large repairs. There will be cleaning and landscaping. There will be the time it takes to show the property, screen your applicants, and negotiate the lease agreement.
Study the current market rents, pay attention to any rent control laws that pertain to you and your property, and set a renewal rate that will help you increase your income while keeping your tenants in place. Ultimately, you want to raise the rent without scaring off the best tenants.
Most of your residents expect that the rent will go up at renewal time. Share with them what you learn about the current rental prices, and show them how your increase is reasonable. Tenants appreciate this, and they’ll be more likely to renew their leases when you’re communicative.
Welcome Pets into Your Marin Rental Property
Are you currently allowing pets in your property?
If you want to maximize what you earn, allowing pets (or at least considering them) is a must.
When you look at the statistics, you’ll see that an overwhelming majority of people own at least one pet. When you refuse to allow pets into your rental property, you’re eliminating a large pool of potential renters.
Allowing pets will reduce vacancy and turnover. You’ll rent your property faster, and your tenants will likely stay for longer because they only want to pay a pet fee once.
Allowing pets will also increase your monthly rent and your annual income. Most tenants today are comfortable paying a monthly pet rent in addition to their own rent. That pet rent can be as much as $50 per pet, every month. There’s also the option to charge a pet fee.
Considering all the extra revenue that pets can create for you. It’s worth it to allow tenants to move in with their well-screened dogs and cats. As long as you have a solid pet policy in place, you’ll be able to protect the condition of your investment.
These are just a few ways to maximize your rental income on a Marin, California investment property. If you’d like us to give you some tips and strategies that are specific to your property and investment goals, please contact us at Bayside Management. We lease, manage, and maintain investment properties in San Mateo and around the Peninsula, including San Carlos, Redwood City, Pacifica, San Bruno, Half Moon Bay, Daly City, Mountain View, Foster City, and Palo Alto.