How to Boost Rental Property Income | Austin Property Management

Strategies For Boosting Your Austin Rental Property Income

You want your investment properties to be as profitable as possible. This means you need to keep your finger on the pulse of the local market to ensure you remain competitive. The strategies below will help you optimize your Austin rental property income. 

#1 Price Properly

Think beyond the 2% and 50/50 investment strategies when pricing your rent by completing a comparative market analysis (CMA). This should include both the average rent for comparable properties in your neighborhood and throughout Travis, Hays, and Williamson counties. Higher always sounds better, but if rent is too high, vacancies will be longer, and retention will be lower. 

What are the 2% and 50/50 real estate investment strategies?

The 2% rule suggests that rent should be set at no less than 2% of the purchase price.

The 50/50 rule suggests that gross rent should generate at least 50% of the net operating income (NOI). 

#2 Maintain Your Property

Beyond dispatched tenant repairs, you must stay up to date with ongoing property maintenance. Maintenance keeps tenants happy, protects your investment, and extends the lifecycle of your roof, HVAC, foundation, and other home systems. 

In addition to maintenance and repairs, map out ongoing upgrades to keep your property competitive in the local marketplace. Most major upgrades must be completed between tenants, but most maintenance and exterior upgrades can be completed when you have a tenant.

#3 Invest in Amenities 

Investing in amenities supports modern and active lifestyles and establishes a competitive advantage that can boost your rental property income. With property costs and interest rates high, more tenants plan to rent long-term. As such, many are willing to pay more for the amenities below. Significantly more if your rental property is semi- or fully furnished. 

Amenities to consider include:

Upgrading kitchen and laundry appliances

Adding a patio or upgrading outdoor living space

Adding or upgrading smart home features

Adding a garage or additional parking

Adding an electric vehicle charging station

Including internet in rent 

If you don’t yet, allow pets

Fully or partially furnish

#4 Market Your Property

You can have the perfect property in the perfect location, but if no one knows about it will stay vacant. Since you can’t access MLS (the most effective way to market your property) without a real estate license—utilize social media and traditional marketing channels. 

#5 Hire a Property Manager

If implementing the strategies above sounds overwhelming, hire a property manager. Stetson Management takes care of everything, and loops you in when repairs, maintenance, and vacancies arise. The cost of our services often pays for itself, enabling a passive income stream. 

We have access to real-time market trends and industry-only marketing channels. We advise on rent pricing and property improvements and have the connections to perform swift and high-quality maintenance, repairs, and upgrades. 

Let’s Discuss How to Boost the Rental Property Income of Your Austin Real Estate

Stetson Management provides tailored tips to ensure your property remains competitive in your neighborhood and price range. Our services decrease vacancies, improve tenant retention rates, and increase your rental property income.