Which strategy is effective for increasing gross rental income?

Including a rent escalator in leases is an effective strategy for increasing gross rental income because it allows for periodic rent increases during the lease term. This mechanism is often based on inflation indices or fixed percentages, enabling property owners to adjust rental rates over time. As costs of living rise, a rent escalator helps maintain the property's income potential without needing to renegotiate leases each time an increase is warranted. This approach can lead to enhanced cash flow and overall profitability, providing a reliable method for keeping up with market trends and expense increases.

In contrast, reducing the number of tenants, minimizing marketing efforts, and limiting property improvements would negatively impact gross rental income. Fewer tenants would mean lower overall income, while limited marketing diminishes tenant acquisition opportunities. Property improvements often lead to increased desirability and can justify rent increases, thus enhancing income potential.