It may seem obvious, but increasing rent and determining the price of rent strategically is an easy way to increase your rental income every month. However, determining the rental price is not so easy. Raising the rent without doing the proper preparation and market research will drive away potential tenants and leave you worse off than when you started.

Here are some tips to increase rental prices and some alternatives that will also increase your income.

Related: How to set a fair rental price for your properties

Do research

Understanding the market is a sure way to ethically and accurately raise rental prices. Without a sense of competition, it can be easy to overprice or underprice your property – you can either scare away potential tenants with your high price or lose more revenue if you price the unit too low.

When setting a rental price, you should justify it with data collected from your neighborhood and determine a rent to value ratio using comparable properties in the market. Market rent is the expected amount of rent your property can generate each month. This metric is based on various factors such as location, amenities, unit condition and the rent charged by comparable properties in the area, called comps.

Compare average rental prices when considering these properties. Comps are a landlord's best friend when justifying a rent increase. They can help you figure out where the price of your property fits the overall market and can highlight potential improvements you can make to your unit to allow for an increase in rental income.

For example, if there is a unit across the street that pays $200 more per month than yours, find out why. Are there nicer floors or fixtures? Do they include certain utilities like gas or water in their rent? Once you've identified these differences, you can weigh the cost-benefit analysis of doing renovations and charging more or keeping your unit priced as is.

While you can always charge more without doing these renovations, it's important to keep in mind that renters are also doing market analysis as they shop for a new place. If your unit is priced significantly above the market rate, buyers most likely won't even want to visit and give it a chance to justify that higher rate. If you charge a premium price, be prepared to offer premium equipment and features.

Adding value

If you decide to undertake one renewal process and open up new opportunities for increased rental income, be sure to choose your renovations carefully. While a fresh coat of paint or new carpet may be necessary improvements, they won't necessarily justify a rent increase.

Some of the most effective, high-ROI upgrades are amenities that make your tenant's life easier. Built-in, smartphone-accessible features like smart locks or climate control can encourage younger renters to choose your property over another unit that doesn't boast these features.

It is important to note that high-tech features tend to attract younger tenants. If you're targeting a tenant who's older than a millennial, you may be better off doing more traditional high-conversion improvements like replacing ceilings or adding/renovating a bathroom or kitchen.

Related: How to reduce tenant turnover to increase your rental income – 3 essential tips for landlords

Other ways to increase income

If you don't want to put yourself through the time and effort required to make renovations and justify a higher rental fee, there are other ways to increase your income as a landlord beyond charging a pretty penny each month.

Reducing tenant turnover

Finding new tenants every year doesn't just take time; it is also expensive. Marketing and tenant review procedures can take time and money that you may not be willing to spend every single rental term.

To reduce the money spent on acquiring new tenants, try to take time in advance to find good ones who seem willing to stay for multiple periods. Finding great tenants will take more time and effort in the beginning, but you'll be thankful for that effort when you don't have to go through those tasks again every time a tenant moves after a single term. rent.

Online rent collection is another great way to reduce tenant turnover. Allowing tenants to pay online is easier, faster and more convenient than checks or cash. By offering a way for tenants to pay from their phone or laptop, you'll have a leg up on landlords who don't offer this benefit, encouraging more tenants to quit with you instead of going elsewhere.

Add reasonable fees

Adding fees is another way to increase income without increasing the rental price. Keep in mind that these fees must be reasonable – paying excessive or exploitative fees will have the opposite effect of taking away rental income.

Some reasonable fees that many landlords charge are pet fees, parking, end of lease, landscaping and applicant fees. Pet and parking fees are additional for tenants who wish to bring a pet or have a parking space near their unit. Lease termination fees are a great way to reduce the likelihood that a tenant will abandon their lease before the lease term is up. Landscaping fees may be charged to tenants who want their lawns mowed or landscaped, and applicant fees are charged to those who are interested in the property and willing to undergo tenant screening methods.

Related: Increase your rental property income by making this simple change

Rent escalation can be a great way to increase your rental income. However, raising rent without considering the surrounding market or potential renovations to your property is a gamble that the owners it should not be subjected to. Chasing potential tenants will have the opposite effect of reducing your income, so be careful with any rent increases you decide to impose.