What makes Tacoma, Washington such an attractive city for real estate investors and renters?
The city’s beautiful views, its food scene, entertainment avenues, and the surrounding universities make Tacoma, Washington an ideal place to live in. It’s accessible to neighboring cities with the Seattle airport just a few minutes away.
World-renowned museums, exciting dining, nightlife choices, and outdoor adventures are just some of the wonderful benefits Tacoma, Washington offers to its residents. It has become a destination for creative entrepreneurs contributing to a thriving business community. This translates to an appealing market for property rentals sustained by the high-value interest of the city.
Here are ways to earn more rent for your Tacoma, Washington property:
1. Minimize turnovers.
Tenant turnover is costly for landlords. Instead of receiving income, you’re spending money on maintenance and marketing to attract tenants. You may consider lowering your rent to keep your tenants for the long-term and thereby receive a consistent stream of revenue. If you adopt a long-term view, you’ll find that it’s far wiser to have a steady payment than to allocate further expenses.
You can also focus on providing exceptional service to your tenants either as a landlord or by hiring a property manager. Tenants like feeling valued by being treated professionally and getting quick responses to their problems. You might incorporate a feedback method to assess the level of customer service your tenants are receiving. This is to help you find better ways to keep them happy.
Even if Tacoma, Washington has a high demand for rentals, having a slightly lower rent price and caring for your tenants will be beneficial in the long-run. Tenants will always rent at a property where they feel most comfortable in and are well taken care of.
2. Be diligent in collecting rent to minimize late payments.
In the rental property business, it’s important to have a strict rent collection process. Make sure to be specific in the agreement about the agreed price, the specific date of collection, and the late fees related to renting.
As an attractive location, Tacoma will have a number of potential renters looking for a good rental space. If you come to the conclusion that your tenant frequently pays after the assigned date, then consider an eviction and look for a more responsible one.
The proximity to well-established universities, numerous trendy shops, and high-end restaurants is bound to attract many potential renters.
3. Increase rent strategically.
You can increase the rent of your longer-term tenants by balancing the demand with the property’s value. If it's high, research the prices of the rental properties around you and proceed to increase the rental price by small amounts, annually.
You can do this by improving or renovating the property during lease renewal. This makes the tenants feel that they’re getting what they paid for. Communicate with them the benefits of staying in your unit. As long as the costs and increase can be justified through property improvement and coverage for utility costs increases then it’s fair to raise rent prices. This enhances your property’s value but also resolves the maintenance and upkeep so it’s a strategic method to earn more revenue.
Tacoma, Washington has an endless number of parks, museums, and recreational spaces. There’s public art, Bonsai museum, and a farmer’s market among a few of its long list of interesting things to do. There are also multiple hiking and biking trails available.
It’s best to take this into account when you assess the value of your rental properties. If it is in proximity to the aforementioned places in Tacoma, Washington, you can potentially increase rent.
4. Be open to short-term rentals.
Tacoma, Washington is a city that is on the rise, hence many potential tenants will be looking for short-term rentals. They can be tourists, students, or visiting other family members.
In the age of Air BnB culture, property sharing to save up on hotel costs is a popular method to earn extra income. Be more flexible and allow shorter stays. You can earn more by asking for a higher daily rental price compared to a monthly rental price.
You can consider creating an agreement with your tenant to pay a fixed fee for subletting. This increases your income while lowering their rental burden as well. Just make sure your security measures are strictly in place and develop a system to identify all your tenants. This method will greatly contribute to more profit.
5. Add multiple revenue-streams in your rental business.
If you have multi-family properties, you can increase the satisfaction of your tenants by having coin-operated laundry and vending machines installed. Instead of looking for local businesses to provide these services, tenants will find it much more difficult to move when convenience is readily accessible to them at your property.
You can also offer house cleaning and landscaping services to make life easier for your tenants. Just add a small fee for the extra services thereby increasing your income stream. It is recommended to continuously think of ways to enhance the quality of your property by providing necessary services to your tenants.
Tacoma, Washington as a city that attracts a high number of tourists and potential renters. Taking advantage of this opportunity through short-term rentals can enhance a landlord’s income. Moreover, by minimizing tenant turnover, increasing rent strategically, having a strict rent collection process, and offering convenient services at your property will lead to higher tenant satisfaction.