In San Jose, rents have been increasing over the last handful of years. Even with the Apartment Rent Ordinance and even with rents across the country peaking and even slipping, the average rental price in San Jose has crept upwards every year and even every month.
That’s fantastic if you own rental property here. How can you maximize what you earn, even while remaining within any local and statewide rent stabilization laws?
We have some ideas. As San Jose property managers, we are always helping our owners and investors earn more and spend less on their rental properties. By making minor upgrades, updates, and changes to how you’re managing and maintaining your property, you’ll find you have more money coming in over the short term, and better appreciation over the long term.
Here are our best strategies.
Leverage Turnovers to Make Improvements and Upgrades
Losing a tenant is tough. It means you’ll face a vacancy and have to pay out of pocket for maintenance, marketing, and preparing the home for your next tenant. But, you can also see this time as an opportunity to increase your rental income.
Make some cost-effective improvements and upgrades while you have an empty property. This is the time to rip up the old, worn carpet and install hard surface floors. It’s a good time to replace any deteriorating appliances with newer models that are more attractive and energy efficient. Put new paint on the walls and install new hardware so that the entire place looks new and modern and attractive to your next set of prospective tenants.
Properties that are in good condition will always rent for more than properties that are showing their age as well as wear and tear. You don’t have to renovate the entire property; that will take time and a lot of money. But, when you can identify areas of improvement that will make a difference in what you’re able to charge in rent, you’re earning more and making your property more valuable.
Invest in Smart Home Technology
San Jose is a city known for innovation and tech start-ups, so bringing technology into your rental property is a naturally progressive idea. Not only does it reflect your sense of location and your tenant pool, but it also raises your rents and attracts better tenants. Today, residents are looking for the types of smart home tech that makes their lives safer, more convenient, and more enjoyable.
Think about installing smart thermostats, video doorbells, and digital keypads instead of old fashioned locks with keys. Providing high speed internet access is also a great idea. While you might leave internet service to your tenants to set up, having it in place when they move in can be extremely attractive to tenants looking for their next home. It also gives you the ability to roll that cost into your monthly rent, increasing what you earn.
Invest in Green and Eco-Friendly Features
In addition to technology, tenants today are also looking for rental properties that are environmentally responsible. They want systems and features that are more sustainable, providing a green living environment that they can feel good about. Investing in eco-friendly improvements can attract environmentally conscious tenants and potentially qualify you for tax benefits. Solar panels, energy-efficient appliances, and water-saving fixtures can lower operating costs in the long term, helping you earn more.
Welcome Pets Into Your San Jose Rental Property
When you indicate in your marketing materials and your listing that you’re willing to consider pets, you open up your tenant pool to more people. Check the latest statistics, and you’ll see that more than two-thirds of people in American households have at least one pet. If you don’t allow pets, you’re eliminating a large chunk of San Jose’s potential tenants.
Allowing pets not only reduces your vacancy time, it also allows you to earn more in rent. You can maximize your rental income by charging a pet fee and even pet rent. When this is per-pet, you can end up earning several hundreds of dollars more every year. If a tenant moves in with two dogs and you charge $300 fee per pet, that’s $600 you’ve earned just by allowing the pets. If you charge a pet fee that’s $50 per month per pet, that’s an extra $100 in monthly rent.
Do the math, and you’ll see how much more lucrative it is to rent to tenants with pets. There’s always a risk of pet damage and extra cleaning, but the risks typically do not match up against the benefits – particularly the financial benefits.
Enhance Curb Appeal
When you want to earn more on your rental property, you need to ensure it looks like the type of property that tenants would pay top dollar to rent. This starts with your curb appeal. Never underestimate the power of first impressions. A well-maintained front door, a tidy garden, or welcoming outdoor spaces can make your property stand out in the competitive San Jose rental market. A higher rental value will make sense to tenants when they arrive for a showing and see a well-cared for lawn, patio, or courtyard.
Review Rent Increases at Renewal Time
Keeping your high-quality tenants in place has to be a priority. Good tenant retention will always increase what you earn because you’re not paying for long vacancies or investing in turnover costs. As your lease renewal approaches, stay informed about market rates to ensure your rent is competitive. Share the data you discover with your tenants, so they understand that staying with you is still a good value, even at an increased rental price.
A local San Jose property manager can always optimize your rental strategy with our in-depth knowledge of the San Jose rental market. We’ll also increase your earnings by placing the right tenants, managing the day-to-day operations, and leveraging our fantastic vendor and service provider relationships to ensure maintenance is cost-effective.
We’d be happy to help you. If you’re looking for ways to earn more income on your San Jose rental property, contact us at Aborn Properties.
Andrea Caldwell
Roy Kellett
Joi Walker, MPM®, RPM®, MBA
Gary Walker, Broker/Owner