Hi,

I remember either reading or hearing on a Mr. Landlord VIP Interview that there is a way to get more than the average rent on a rental property. I'm about to purchase a vacant property that was recently tenanted. The property is in good, move-in condition, and the last tenant was paying $1,300. The average rent for the area is ~$1,500. Would anyone know where I can find the information on getting more than the average rent rate?

Thank you

Some on here offer "fries with that". Not sure if that is what you are referring to or not.

In example: they may offer to rent them the refrigerator, washer, dryer, ect...

Also, some offer pay day payment plans and can get a little extra that way.

Some offer to rent the detached garage separately.

Some love to rent to multiple animals for extra rent, but be aware of laws for ESA and Assistance animals.

There are other things but I can't remember them right now.

There are hundreds of solid reasons for people to lease a house at a price above Average. The location as it pertains to the tenant family,work, Church, School. Or your house may have features that are important to them. Or, it could be that they need to get a place to live secured, and get about their relocation. Or , it could be that you present your property in a way that makes them want to deal with you, especially when the other landlords gave them cause for concern.

Just a thought: While it is nice to get "above average" rent, it comes with costs.

First, in order to get above average rent, you will need to offer above average amenities; nicer layout, safer location (or security) higher end kitchen/ bath, off street parking, and the list goes on..........all of which add to your cost.

2nd, if it is a higher cost rental, it may sit vacant for longer as the pool of people who can afford is smaller.... it takes a long time a $500 month above average t0 make up on 3-5 months of lost revenue at 3300 a month... by which time you may have another vacancy....

You can get higher than typical rents with niche housing. Some niches include STR, MTR, Student housing, special needs housing and insurance claim placement housing.

If you're getting above-average rent, a lot of times you're dealing with above-average tenants. Above-average tenants have options. If they're not happy with what they're getting from you, they'll find someone who can offer it. So, if you're confident you can provide an above-average home, in an above-average location, with above-average finishes, tailored to appeal to someone who can afford it, knows how to take care of it, and is willing to pay extra for it--- then go for it.

Other times, you get more from people because risky people pay a surcharge for you to do business with them. Suppose rent is $1000/month, but it's at the edge of a tenant's ability to pay. They'd really like it if I can work with them and synch their rent to their paychecks. So, suppose that's $500 every two weeks--- instead of $1000 x 12 = $12,000, that's $500 x 26 = $13,000. Or perhaps $525 x 26 = $13,650. The downside, of course, is that you're dealing with a riskier population, and if something unexpected happens, they probably won't be able to keep it from affecting their relationship with you.

Risky tenants take many forms. They may be people with bad credit, or criminal history, or people with pets, or people with evictions, or offenders, or whatever. You can charge them extra because so many places don't want to deal with the drama. But that extra is what you get for the hassle of dealing with them yourself.

Sir,

Knowledge is power and profit.

Get to Convention in June and learn.

I'll be making a presentation on how we get an extra $1,000-2,000 a year from each regular rental.

And people COME TO US for this.

BRAD

Offer the bi-weekly payment plan to match the regularity of tenants' paychecks. Example...

$1500 monthly rent is average. $18,000 per year.

Divide by 2 to get the bi-weekly rate of $750. Add $25 or so just to keep it clear that this is not "half a month's" rent. Payment plan is $775 every 2 weeks when tenant gets paid.

Bill every 2 weeks (14 calendar days). There are 26 two-week periods per year. $775 * 26 = $20,150 per year, a difference of $2,150.

Cost out of pocket? $0.

Will tenants do it? Yep, sometimes. Never know until you offer it.

Any other benefits to it? Yes, offer the same deal any time a tenant is late with rent. They either go on the payment plan or get evicted. Their choice. Do not allow them to switch back to monthly payments until their current lease renews AND they are fully caught up. This eliminates the "I'll pay you as soon as I can" schtick that they never end up following through with and that causes record keeping nightmares as they decide how much they want to pay and when. It's clear cut and offers them time and grace. If they are solid enough to survive, they'll take it. If they are blowing smoke and have no hope of catching up... well, they were as good as gone anyway, so no skin off your teeth for offering it.

Questions?