Best Tips for Increased Rent

Jersey City, New Jersey
First-Time Home Buyer
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Best Tips for Increased Rent

Christopher Morris
Member since 2023 · 73 posts · 31 votes

Hello BP, 


I finally have my first accepted offer in Bayonne NJ. Its a duplex property and I am looking to improve each unit to maximize my rent roll. I was planning on adding vinyl floors to both units and having a painter come in. I think lighting plays a large part in it as well, but does anyone have some advice for increasing rent roll for duplexes? 

Thank you! 

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Matthew Kwan
Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
3y

yes doing minor cosmetic rehab can always get your return back. You can also try experiment one unit being semi furnished and the other unit not furnished. You will be able to compare and differentiate your competitors from that neighborhood. @Carlos Valencia @Albert Bui

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  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    3y

    yes doing minor cosmetic rehab can always get your return back. You can also try experiment one unit being semi furnished and the other unit not furnished. You will be able to compare and differentiate your competitors from that neighborhood. @Carlos Valencia @Albert Bui

    1Reply
  • Christopher Morris
    OP
    Member since 2023 · 73 posts · 31 votes
    3y
    Quote from @Matthew Kwan:

    yes doing minor cosmetic rehab can always get your return back. You can also try experiment one unit being semi furnished and the other unit not furnished. You will be able to compare and differentiate your competitors from that neighborhood. @Carlos Valencia @Albert Bui


     Thanks for the advice! I like the idea 

    0Reply
  • Cassandra Alessio
    Real Estate Agent · NJ · Member since 2018 · 95 posts · 31 votes
    3y

    Congrats! I would look at other apartments in the are and compare the pictures to the rent amounts. You could get an understanding of what would give you the top return depending on how much people are willing to pay for what amenities/features in each unit. I would also look at what extras that won't break your budget that you could do that could set your rental apart. Anything that is specific to who would be renting in that area will help you increase your rent. Fresh paint, new lighting, new floors, kitchens and bathrooms up to par with the rent amount, anything extra that could entice renters whether it is a place for them to store their bike or a designated area under the steps for a dog bed. It will help tremendously to know the other buildings/duplexes in the area so you can get an idea of what renters want in that area.

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  • Josh Manfred
    Member since 2017 · 5 posts · 1 vote
    3y

    Congrats on the start of your journey!  Dion McNeeley has a binder method that seems to work wonders in increasing monthly rents.

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    We’ve found the best way to raise rent is:

    • Determine market rent
    • Share the proof with the tenant
    • Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
    • Often, they may volunteer a higher amount than you were hoping for.
    • Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
    • Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb the.

    ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

    Logical Property Management4.9454 Reviews
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  • Christopher Morris
    OP
    Member since 2023 · 73 posts · 31 votes
    3y
    Quote from @Melanie Thomas:

    Hi Christopher!

    Congratulations on your first accepted offer in Bayonne, NJ! It's great to hear that you're looking to maximize your rent roll by improving each unit in your duplex property. Here are some tips and advice to consider:

    1. Upgrade the flooring: Vinyl floors are a fantastic choice as they are durable, easy to maintain, and cost-effective. They can provide a modern and fresh look to your units, attracting potential tenants.
    2. Fresh coat of paint: Hiring a painter to give the units a fresh coat of paint is an excellent idea. Choose neutral colors that appeal to a wide range of tastes and create a bright and inviting atmosphere.
    3. Enhance lighting: Good lighting can make a significant difference in the overall appeal of your units. Consider installing energy-efficient LED lights or adding additional lighting fixtures to brighten up the space. Well-lit rooms tend to feel more spacious and welcoming.
    4. Kitchen and bathroom updates: These areas are crucial for potential tenants. Consider making minor upgrades like installing new countertops, faucets, or cabinet hardware to give them a modern touch. If budget allows, you could even consider updating appliances or adding attractive backsplashes.
    5. Curb appeal matters: Don't neglect the exterior of your duplex. Enhance the curb appeal by maintaining the landscaping, adding fresh plants or flowers, and ensuring the entrance area is clean and inviting. First impressions are important and can attract quality tenants.
    6. Offer amenities: Consider adding value by providing amenities such as laundry facilities, off-street parking, or outdoor spaces like a patio or balcony. These additional features can justify higher rent and attract tenants who are willing to pay more for the convenience they offer.
    7. Research the market: Take the time to study the rental market in your area. Understand the rental rates for similar properties and amenities in the neighborhood. This will help you set competitive rent prices that reflect the improvements you've made.

    Remember, communication with your tenants is also essential. Providing responsive and attentive property management can contribute to tenant satisfaction and potential rent increases in the long term. Best of luck with your rental property venture in Bayonne!


     Thank you for this great advice! I will put this into action. 

    1Reply
  • Christopher Morris
    OP
    Member since 2023 · 73 posts · 31 votes
    3y
    Quote from @Michael Smythe:

    We’ve found the best way to raise rent is:

    • Determine market rent
    • Share the proof with the tenant
    • Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
    • Often, they may volunteer a higher amount than you were hoping for.
    • Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
    • Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb the.

    ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.


     I like the unique ideas... definitely will be using them! 

    0Reply
  • Trevor Richardson
    Real Estate Broker · Reno, NV · Member since 2023 · 267 posts · 297 votes
    3y

    Housing is a product. You are about to sell a product so marketing the units, and condition is really important. Try to match other inventory that gets X in rent, then list it for that rent.

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    3y

    Hi @Christopher Morris it all depends on the property and comparable.  I have increased rents by hundreds of dollars a month with basic updates.   I have a client who is accepting new tenants right now, he will receiving over $1,000 per month more than the previous landlord was charging and all he did to the property was update the kitchen for under 5k.  Meanwhile my first house hack I put in over 50k of work most of which I did myself, had  subbed it out it would have been well over 100k, I 3x rents and live with very little out of pocket.   

    What's most important is to speak with your realtor/mentor and map this out prior to getting Under contract. North Jersey is notorious for having money pit duplexes, a lot of the time it is because most people are sold on "rent out one side live in the other" which is a great start but does not mean it is a great deal. So at this point if you are in attorney review and I were you I would not end AR until you have the clear vision of what gets you the greatest ROI long term with the least amount of work.

    973-975-3895
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  • Account Closed
    Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y

    Think practically about what tenants WILL pay more for. Certain cosmetic rehabs won't warrant paying larger rents, from a tenant perspective. Vinyl planks are a great way to start, another one is adding central air if they currently have window units. 

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  • Julien J.
    Investor · CO · Member since 2016 · 757 posts · 1k+ votes
    3y

    Couple other ideas

    - Allow pet and charge pet rent

    - Bill back utilities

    - Add storage

    - Charge for garage/parking

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