Rent control laws in San Francisco are notoriously strict, so there’s little hope of raising the rent more than what’s allowed when your lease agreement renews year after year. That doesn’t mean rental property owners cannot effectively maximize their rental income. There are a few good ways to drive up earnings, even with restrictions on your rental amount.
At Luminor Real Estate, we are always looking for ways to help our investor and landlord clients earn more and spend less on their properties. We manage to do that in some creative ways, and we’re sharing those strategies with you today.
Pets Have a Purpose
Are you offering a pet-friendly rental property? If you’re looking to maximize your income, you should be. Pet-friendly
rental properties in San Francisco are more profitable, and they attract a much wider pool of potential residents. Here’s why you should allow pets when earning more is a priority:
- Considering Pets Leads to Less Vacancy and Turnover
Units rent faster when pets are allowed or at least considered. You’ll have a better chance at reducing your vacancy risk when you’re open to animals moving in with their owners. Statistics show us that more than half the tenant population in San Francisco have at least one pet. You’re opening your property up to more tenants, and that means you’re going to find a good renter faster. Collect rent faster when you have well-qualified tenants moving in with their well-screened pets.
Retention rates are also higher when your tenant has a pet. You can understand why; moving would require that they find another pet-friendly property. It might also include a new pet fee. If you’re providing a great rental experience, your tenants will want to stay where they are with their furry friends.
Value-Added Services for San Francisco Rentals
Another strategy that we employ is to provide extra services to residents. Add amenities and services.
You’ll find your tenants are likely to pay for valet trash, package delivery services, and professional landscaping. You could include Wi-Fi in the rent and offer a utilities package that will offer tenants convenience and give you the opportunity to earn extra money. Some of the top value-added services and features that can help San Francisco rental property owners maximize their income include:
1. Smart Home Upgrades
Installing devices like smart locks, thermostats, and lighting systems appeals to tech-savvy tenants and adds substantial convenience. These upgrades also promote energy efficiency, helping environmentally conscious renters feel good about their choice.
2. Fitness and Wellness Amenities
On-site gyms, yoga studios, or even partnerships with local fitness centers provide significant appeal. Many renters prioritize health and wellness, and offering these amenities can set your property apart. If your property doesn’t have a workout space, offer discounts to local fitness centers.
3. Cleaning and Maintenance Services
Providing access to reliable housekeeping, laundry, or handyman services ensures tenants enjoy a hassle-free rental experience. For investors, these services are often low-cost partnerships that deliver high perceived value.
Focus on services and amenities that align with your tenant demographics. A playground is a good idea when all of your tenants have children. Pet waste bags are a great addition to the outdoor space when you have a lot of pets living in your properties.
Optimize Your Marketing Strategy
Vacancies are costly, and a good way to keep those costs at bay and increase earnings is by avoiding vacancy.
An effective marketing strategy ensures your property is getting the right attention from the right audience.
- Create an attention-grabbing listing that attracts attention from qualified rentals. At Luminor, we use quality photos, concise descriptions, and even walk-through videos to create an emotional connection with prospective residents.
- Leverage popular rental platforms like Zillow, Apartments.com, and HotPads to list your property.
- Incorporate compelling property descriptions that emphasize key benefits, such as its proximity to BART, Golden Gate Park, or tech company shuttles.
Better marketing leads to a shorter vacancy and high-quality tenants. Don’t expect your listing to take care of itself. When you work with us, you’ll get an aggressive and strategic marketing plan which includes responsive showings and dedicated follow-up.
Be Willing to Invest in Improvements
Earning more rental income requires that you stay competitive within the fast-moving
San Francisco rental market. In the past, we’d recommended upgrades like fresh paint, hard surface floors, and aesthetic elements like tile backsplash in the kitchen and better lighting.
Those things still matter, but San Francisco tenants today are more interested in smart home technology and energy efficiency. Our property management strategies have evolved to meet that demand.
When you’re deciding how to improve your property in order to maximize your rent and attract better tenants, consider investing in updates such as:
- Appliances with an ENERGY-STAR rating. This is a response not only to a growing sense of environmental stewardship and a desire among tenants to live in a greener space, but also a fundamental interest in saving money on energy bills.
- Keyless entry systems. Gone are the days of keys and key chains. Tenants are looking for ease and access. A digital keypad, an app-enabled locking and unlocking mechanism, and other keyless entry systems are going to boost the value of your rental and make that property more attractive to quality tenants.
- EV charging stations. Electric cars need charging stations, and when your building or your property can provide access to this type of amenity, you’re going to earn more money in rent and boost the value of your investment.
These are just a few examples. The best improvements will depend on your specific property, notably its location, its age, and whether it’s in a building, a duplex, a condo, or a single-family home in a residential neighborhood. Our point is this: when you want to maximize your earnings, you must be willing to invest in your investment property. Don’t let it deteriorate. Don’t let it look old. Keep it appealing and attractive. You’ll earn more, especially when you focus on improvements with high value.
Prioritize Tenant Retention
Tenant retention is key to reducing vacancies and turnover costs, which will immediately maximize what you earn. Here’s how you can cultivate strong relationships with your tenants and encourage them to renew their leases.
Be responsive to maintenance requests and take a proactive approach to property upkeep. A clean, safe, and well-maintained property shows tenants that you care, making them more likely to reciprocate that effort. Prioritize preventive maintenance and you’ll earn more by retaining tenants and by protecting the condition and value of your investment.
- Create a Great Tenant Experience
We want our renters to be happy, not only because it means fewer conflicts and difficulties, but also because it means they’re more likely to renew their lease agreements. It’s important to balance service with accountability, and we know how to do that.
- Make Reasonable Rental Increases
Rent stabilization rules limit how and when you raise your rent, but you’ll always have the opportunity at renewal time to increase what tenants pay, even if it’s only by three or four percent. Make sure the increase you’re implementing is market-driven and not likely to chase your tenant out of the property in search of something more affordable.
- Offer Flexible Lease Terms
