15 Proven Ways to Increase Rental Income in 2026

Most landlords leave money on the table. The average rental property in the U.S. generates $1,100–$1,800/month, but with the right strategies, you can push that number 20–50% higher without buying another property.

Here are 15 tested methods that real landlords use to increase rental income — ranked from easiest to most involved.

1. Raise Rent to Market Rate

This one sounds obvious, but 60% of small landlords charge below market rate according to a 2024 Avail survey. They avoid increases to keep tenants happy, then wonder why cash flow is tight.

How to do it right:

• Check comparable rents on Zillow, Rentometer, and Apartments.com every 6 months
• Send a [rent increase notice](/blog/how-to-raise-rent) 60–90 days before lease renewal
• Keep increases to 3–5% annually for existing tenants — this is below what most tenants would pay to move
• Document market comparables so tenants understand the adjustment

A $50/month increase across 3 units adds $1,800/year. Over 5 years, that's $9,000 you'd otherwise miss.

2. Reduce Vacancy Time

Every vacant day costs you. On a $1,500/month rental, one empty month wipes out 8% of your annual income.

Target: less than 14 days between tenants.

• Start marketing 60 days before lease end
• Offer a small discount ($50–100 off first month) for tenants who sign early
• Pre-screen applicants while the current tenant is still in place
• Schedule overlapping move-in/move-out when possible
• Use professional photos — listings with quality photos get 118% more views (Zillow data)

3. Add a Washer/Dryer

In-unit laundry is the #1 most-wanted amenity among renters. Adding a washer/dryer lets you charge $75–150 more per month depending on your market.

Cost: $800–1,500 for a stackable set ROI: 6–12 months to break even

If plumbing isn't available, ventless combo units work in most apartments and don't require a dryer vent.

4. Allow Pets with a Pet Fee

About 70% of renters own pets. Banning them cuts your applicant pool dramatically. Instead, charge for the privilege:

• Pet deposit: $200–500 (refundable)
• Monthly pet rent: $25–75 per pet
• One-time pet fee: $150–300 (non-refundable)

Two pets at $50/month each adds $1,200/year. We cover this in depth in our [[pet-friendly rental](/blog/pet-friendly-rental-guide) guide](/blog/pet-friendly-rental-guide).

5. Offer Furnished or Partially Furnished Units

Furnished rentals command 20–50% higher rents. You don't need to go all-out — even "partially furnished" (bed frame, couch, dining table, desk) can justify a $200–400 premium.

This works especially well for:

• Units near hospitals (travel nurses)
• College towns
• Cities with corporate relocations
• Midterm rental markets (30–90 days)

Cost to furnish: $2,000–5,000 for a 1-bedroom Monthly premium: $200–500

Read more in our furnished vs. unfurnished rental comparison.

6. Charge for Parking

If you have off-street parking, don't give it away free. In urban and suburban markets, dedicated parking spots rent for $50–200/month.

Even in suburban areas, a covered or garage spot commands a premium. If your property has more spaces than units, rent the extras to neighbors or commuters.

7. Add Storage Space

Renters accumulate stuff. If you can offer a locked storage unit, closet, or basement cage, charge $30–75/month for it.

Low-cost options:

• Install a partition in a basement or garage ($200–500)
• Add outdoor storage sheds ($500–1,500)
• Convert unused attic space

8. Switch to [Midterm Rentals](/blog/dscr-loan-midterm-rental) (30–90 Days)

Midterm rentals earn 30–70% more than traditional 12-month leases. The tenant pool includes travel nurses, corporate relocators, insurance housing, and remote workers.

A unit renting for $1,500/month on a long-term lease can fetch $2,200–2,800/month as a furnished midterm rental.

The trade-off: more turnover and furnishing costs. But the math usually works. See our full [[midterm rental strategy](/blog/midterm-rental-strategy) guide](/blog/midterm-rental-strategy).

9. Utility Bill-Back (RUBS)

If you're paying utilities, stop absorbing the cost. Ratio Utility Billing Systems (RUBS) let you allocate utility costs to tenants based on square footage or occupancy.

Average savings for landlords: $100–200/month per unit

Check local laws first — some cities regulate how utility costs can be passed through.

10. Install Smart Home Features

Smart locks, thermostats, and video doorbells cost $200–500 total and let you:

• Charge $25–50 more per month
• Remotely manage access for showings and maintenance
• [Reduce energy costs](/blog/energy-efficient-home-upgrades) between tenants
• Attract tech-savvy tenants willing to pay more

Smart locks alone save $100+ per turnover in re-keying costs.

11. Improve Curb Appeal

First impressions drive rental decisions. Tenants who like the exterior are willing to pay 5–7% more (National Apartment Association data).

High-impact, low-cost improvements:

• Fresh exterior paint on the front door and trim ($50–200)
• Landscape cleanup and mulch ($100–300)
• New house numbers and mailbox ($30–80)
• Exterior lighting ($50–150)

Total spend: under $500. Potential rent increase: $50–100/month.

12. Offer Lease Incentives That Benefit You

Structure leases to reduce your costs:

• Longer leases: Offer a $25/month discount for 18-month or 24-month leases — the reduced turnover saves you $2,000+ per avoided vacancy
• Auto-pay discount: $10–25 off for tenants who set up autopay — reduces late payments and collection hassle
• Early renewal bonus: $50 gift card for tenants who renew 90 days early — gives you planning time

13. Add a Bedroom or Convert Space

If your property has a den, large closet, or bonus room that could function as a bedroom, the conversion can be worth $200–400/month in additional rent.

Rules of thumb:

• A bedroom needs a window, closet, and minimum 70 sq ft in most codes
• Converting a garage to a bedroom: $5,000–15,000
• Adding a wall to split a large room: $500–2,000
• ADU ([accessory dwelling unit](/blog/multigenerational-housing-guide)): $50,000–150,000 but can add $1,000–2,000/month

Check local building codes and get permits.

14. Monetize Common Areas

If you own a multifamily property, common areas can generate revenue:

• Laundry room: Coin or card-operated machines earn $50–100/unit/month
• Vending machines: $50–200/month in high-traffic buildings
• Package lockers: Charge $10–20/month or partner with Amazon Hub
• EV charging: Install a Level 2 charger, charge $0.15–0.25/kWh above your cost
• Cell tower lease: $500–2,500/month if your rooftop qualifies

15. Refinance to Lower Your Costs

Income isn't just about revenue — it's about cash flow. Refinancing at a lower rate directly increases your net income.

[When to refinance](/blog/mortgage-refinance-guide):

• Rates have dropped 0.75%+ below your current rate
• You've built significant equity (removes PMI)
• You want to pull equity for property improvements that increase rent

A 1% rate reduction on a $200,000 mortgage saves roughly $120/month — that's $1,440/year straight to your bottom line.

How to Prioritize These Strategies

Not every strategy fits every property. Here's a quick decision framework:

Start with the low-effort wins. Stack 3–4 strategies and you can realistically add $300–600/month per unit.

Common Mistakes That Kill Rental Income

Over-improving for the market. Granite countertops don't help if you're in a B-class neighborhood. Match upgrades to what your target tenant values.

Ignoring tenant retention. Finding a new tenant costs $2,000–5,000 (vacancy, cleaning, marketing, screening). A $50/month rent increase isn't worth losing a good tenant over — but a $150/month increase probably is.

Not screening properly. One bad tenant can cost you 6–12 months of income through damage, eviction costs, and vacancy. Spend the $30–50 on proper screening every time.

Deferring maintenance. A $200 repair today prevents a $2,000 repair next year. Deferred maintenance also gives tenants leverage to negotiate lower rent or break leases.

FAQs

How much can I realistically increase rental income without buying new properties?

Most landlords can increase income by 15–30% by stacking 3–5 of the strategies above. The biggest gains come from reducing vacancy, raising to market rate, and adding pet fees or furnished premiums.

Is it worth furnishing a rental property?

Yes, if your market supports it. Furnished rentals earn 20–50% more in markets with travel professionals, corporate relocators, or strong Airbnb demand. The furniture pays for itself in 4–10 months.

How often should I raise rent?

Annually, at lease renewal. Keep increases at 3–5% for good tenants. Check market comparables every 6 months so you don't fall behind. In rent-controlled areas, follow local regulations.

What's the fastest way to increase rental income?

Raising rent to market rate and adding pet fees. Both take effect immediately with no capital investment. If you're significantly below market, a single adjustment can add $100–300/month.

Should I hire a property manager to maximize income?

Property managers typically charge 8–12% of monthly rent. They're worth it if you have 4+ units, live far from your property, or don't have time to implement these strategies yourself. A good manager often pays for themselves through reduced vacancy and higher rents.

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At HonestCasa, we help landlords make smarter decisions about their rental properties. No hype, just data-backed strategies that work.

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