Rents have risen over the last few years, and even as they begin to peak and stabilize or even drop in some California cities, most property owners are still making more than they were on their investments. Not only has the value of property increased, but the amount you’re able to charge has continued to march upwards, even with rent control laws keeping those increases manageable. 

Maybe you don’t feel like there’s much to do to increase your rental income; the market is going to dictate what you can and cannot earn, and so are the stabilization laws. After all, demand has been high and supply has remained low. That creates a sense of competition among tenants, and they’ve been willing to pay more to rent a home. 

Don’t let this mislead you into thinking there aren’t excellent ways to maximize your rental income. There are plenty of tips that we have for you today, and many of them can be implemented right away. 

First: Invest in Updates and Renovations 

The most obvious and easiest way to drive up your rent is to make your property more valuable. 

You cannot control the market. You cannot do much to control the laws. But, you can control the type of floors and the appliances you choose. You can control whether there’s fresh paint on the walls and nice landscaping. 

To increase your rental returns and maximize what you earn over the long term, you need to ensure that your property is in excellent condition. 

Respond to maintenance requests from tenants right away and conduct frequent inspections, especially before a tenant moves in and after a tenant moves out. 

Get ahead of any deferred or unreported repairs - those will be expensive maintenance items. 

Educate your tenants on the importance of reporting maintenance needs right away. This will protect your property from excessive wear and tear or quick deterioration. You need to maintain your investment’s condition and value if you want to maximize what you earn. 

It’s about more than just routine and preventative maintenance. You also want to make improvements. 

Keep your rental property up-to-date with the latest amenities and features. This will attract high-quality tenants who are willing to pay more for a well-maintained property. 

Some of the most cost-effective improvements and updates we see as Santa Cruz property managers include: 

Fresh paint during every turnover. Do the whole walls instead of sloppy touch-ups.

Hard surface floors instead of carpet. This is easier to maintain, more appealing, and reduces the number of allergens tenants have to deal with.

Smart home tech features, such as smart thermostats and video doorbells.

Tile backsplash in the kitchen behind the sink or the stove.

Energy-efficient appliances and insulated windows.

Updated landscaping.

These things will immediately increase what you’re able to charge in rent.

Keep Pricing Competitive and Profitable

Very few rental properties realize how important pricing is to your bottom line, and we don’t just mean charging as much as you possibly can. There’s more nuance to profitable pricing strategies. 

Overpricing will only lead to an extended vacancy, which may ultimately cost you more than if you had listed your home at market rates. Underpricing may lead to lower rental returns. Research the rental prices in the Santa Cruz area and then price your property accordingly to keep yourself competitive in the market.

You’ll need access to reliable market data and information about competing properties. You can find this information online, but use that as a starting point only. A property manager can give you better information that’s based on analytics and insights that we get through our technology and platforms. 

Prioritize Tenant Retention 

Good tenants will help you maximize your rental income because they’ll provide consistent and recurring rental payments. 

By renting your home to unqualified residents, you risk losing money on late rent, unpaid rent, and potential evictions. You may find property damage and waste money on lease violations. 

Good tenants contribute to your earnings by paying rent on time, taking care of your property, and renewing their lease agreement year after year. 

Tenant retention will always help you earn more. When your tenant renews a lease agreement, you’re avoiding expensive turnover and vacancy costs. 

Work with a Santa Cruz Property Management Partner

Hiring a property manager in Santa Cruz is one of the most strategic decisions a rental property owner can make to maximize rental returns. Your property management partner will take care of all the day-to-day operations that are involved in the leasing, management, and maintenance of your property. But more importantly, we’ll always be identifying ways to increase what you earn and decrease what you spend.

Professional management saves you money by reducing vacancy times and making maintenance more cost-effective. Our relationships with vendors, contractors, and service professionals allow us to negotiate better rates. We also keep you out of legal trouble by ensuring you and your property are compliant with all state, federal, and local laws. 

Smart investors understand the value of property management and how it maximizes earnings.

Flexible Lease Terms