Ever asked your boss for a raise? Did you observe his reaction? Similar things happen when you ask your tenant to pay a specific amount with the rent or a rise in rent. You have to be a smart ass here. Know how to raise a rent with minimal spending. You should focus on managing the property you own than another. Well, of course that’s completely your wish if you want to buy another one we ain’t stopping you to. But what if we tell you exactly how you can make the most out of your property with just a little investment?
There are few factors that you should consider while renting out your property, which we will discuss further. You do not need to explain why you are increasing the rent. But it should be evident that your tenant will pay the rent without arguing much ( he will object to the matter though ).
Factors to be considered to raise a rent (don’t miss #4) :
Every business has its own season peaks. So does the real estate market. You should be aware when the market is pacing and when it is slow. In an area like Delhi NCR, the peak season is counted between from the last week of April to the first week of September.
You should adjust your rent expectations according to the fluctuations in the market.
Expect a little less when its ‘off season’ and vice versa.
#2 Risk Bearing:
Another important factor! Before we explain why it is important; tell us something. For what time are you willing to keep your property vacant, when you are not getting the kind of tenant you desire? Or would you just settle for what is coming first?
There is no fun without bearing risks in life. You have to take bold steps sometimes. When the market is taking its pace you can ask for the higher rent (say in peak season). And when the market is down you will have to lower down the expectations. The occupancy of your property depends upon the risks you take.
So, do you want to give your property on a speedy basis and then realise that you had an option where you could have gotten more. Or do you want to leave the offers just because you have a specific amount in your head and get settled for less after realising the previous offers were good. Know your market and know the worth.
Here comes the benefit of online rental management property that allows you to be updated with the current market price.
#3 Property Improvements:
We personally recommend this one! The more the merrier. Ok! Just the renovation in your property. The more beautiful your property is the more tenants you will get. It is important to make improvements in your property. Know what and how the other owners are improving their property.
Don’t be outdated, decorate your property (not the windchime and frills duh!!). Look around and observe what are the new features the owners are adding to their property. Such as new cupboards, cabinets, flooring, wallpapers etc.
Add new features and make your property attractive. Just go with the trend. But don’t invest too much that you have to go into losses. Remember you can ask for a rise in rent only to some extent not beyond that.
#4 Personalized Rental Analysis
Before going further; know what is rental analysis?
Rental analysis is basically evaluating your neighborhood, identifying the compatible properties, calculating the price per square feet and adjusting the rental price according to the amenities being provided.
It is a great opportunity for the owners that Halanx provides a personalized rental analysis. Which means an analysis that has been done just for you inclusive of the rental analysis. We at Halanx pay extra attention to the needs of an owner and keep on updating about when to raise a rent. We help our owners by providing:
The statistical data of market price vs Halanx price.
List of similar properties; so that you can make some improvements as mentioned above. You don’t have to think on your own we’ll help you out.
We will show our efficiency how and how much we have made other owners happy by helping them with the property’s occupancy in the form of pictures or in person. Helping the owners in making the most out of their property in the form of rent.
#5 Use Of Artificial Intelligence:
Ooh! Sounds some super power! It may sound like high-tech but it is just another technology. OK! Smart technology that is revolutionizing the way of online property management.
It collects the data we provide and the data from the third party listings which helps in analysing the market place. This is not a confidential thing to hide. You can get the data from Halanx. The data is driven by the tools and technologies we use; we combine the data and filter it according to the needs of an owner.
You can raise a rent by keeping few factors in mind such as seasonal factors, there will always be risks, timely property renovations, a personalised rental analysis and use of artificial intelligence.