Helping you NET the home of your dreams.

10 Steps to Maximizing your Gross Rental Income

Want to add $40,000 per year to your gross rental income? For many properties that is certainly possible. The key is careful planning and good timing. Summer 2013 sounds a long way off, but consider the fact that some bookings are already coming on for 2013. If you are considering changes you need to act now.

Step 1. Place a block on 2013 weeks with your management company. Don’t take reservations at a lower rate and be forced to honor them.

Step 2. Make a list of Upgrading option.

Step 3. Quantify how many incremental dollars each change would generate for a year.

Step 4. Assign a ballpark price to each viable improvement.

Step 5. Compare the extra gross rent to the cost of each improvement.

Step 6. Calculate the Payback period for each option. Divide the cost of the improvement by the gross extra rent (ex. A pool which generates an extra $16,000 and costs $40,000 has a 2.5 year payback.)

Step 7. Rank options by payback period and incremental rent gain.

Step 8. Review these options and compare how your property would accommodate each option. Ex. Does the house design allow for those extra bedrooms and baths? How will the property look with the addition of each option?

Step 9. For the options that seem to make sense, determine if they can be completed before next rental season.

Step 10. Select a contractor, get estimates, and select the contractor and go.

 

Follow these simple steps and you will be increasing your income in no time!

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