Updated June 17, 2020
This article was contributed by TurboTenant
While your number one source of income from your rental property will be the monthly rent payment, there are other ways your rental can earn you money. If you are looking for more opportunities to increase your profits, check out these methods for earning more with your rental.
12 ways to increase profits on your rental property
1. Additional Storage
If you own a multi-unit property, a lot of your tenants might require extra storage. For many who live in small apartments or duplexes, they quickly outgrow their space. Whether your tenants have camping gear, bicycles, tools, or other items that would traditionally be stored in a garage, extra storage can be an easy moneymaker for you.
Implement storage sheds on the property and rent them out on a first-come, first-serve basis. Many tenants likely pay for space at self-storage facilities and would rather roll the money up into their rent check every month as well as have easier access to their belongings.
2. Landscaping Services
If you have tenants who live in homes where they are responsible for the yard work, offer a set monthly price for landscaping services. Either you can handle the mowing and upkeep yourself, or you can bargain for a lower price point with a local landscaper.
This saves your tenants from the hassle of yard work and makes you extra money; it also protects your property. You will have the peace of mind that the tenants are taking care of the yard.
3. Build Affiliate Relationships
If you own an apartment or multi-unit complex, you should always be on the lookout for affiliate relationships you can build. Talk to local internet and cable providers and find out what kind of kickback you could gain from partnering with a provider for your building.
4. Offer Fitness Classes
Does your property have a common area? Work with a local fitness instructor and offer pay-for classes. Yoga and kickboxing make great options, and due to their popularity will garner a lot of interest. Many of your tenants pay for fitness classes regardless, and the convenience of having them on-site will be a large draw.
5. Charge For Event Parking
Do you have a property with a parking lot? Utilize extra parking spaces during nearby events by offering event parking. This is simple to set up and can be extremely profitable during major events.
6. Coin-Operated Laundry
If you own a multi-unit building with laundry services, install coin-operated machines instead of regular washers and dryers. With regular washers and dryers, you are paying for the extra water and electricity without getting reimbursed. If you install coin-operated machines, the utility costs of operation are often covered by the tenant.
7. Build a Garage and Charge for Rental
If your building does not have a garage consider building one to rent to your tenants for and extra monthly fee. You'll be surprised at how many tenants would prefer to park indoors than along the street or in a parking lot. Garage space can also be rented for storage if you don't have enough driver interest.
8: Require Parking Permits
Parking lots require maintenance and which is a cost of repair you'll have to cover as the building owner. To offset some of those costs, consider charging for parking in the lot. Assign parking spots and give tenants a parking pass for a small yearly or monthly fee.
9. Keep your Rental Rates Current
Before each rent renewal, review the local rents on Rentometer. By staying current with rental rates, you'll know if you can increase rent by $15-$20 for the next renewal period. This is an extra cash flow of $180 - $240 a year for the same unit.
10. Added Amenities
If you have space, consider putting in an exercise room, sauna or swimming pool. These extra amenities are all items that can help you raise the rental rates because you are providing more for your tenants. Yes, they cost, but by increasing rent, you can cover the cost over time.
11. Updating the Units
Over time your apartments will look dated and worn. Tenants recognize this when they see it for the first time. Consider some less expensive, cost-saving updates to improve the look of your apartments and allow you to charge more for rent. Updating the flooring, countertop, bathroom, and kitchen cabinets are easy improvements you can do that will give you the best return.
12. Adding a Bathroom
Did you know that a 1/2 bath can give you an extra anywhere from an additional $100/mo up to $1000/mo, depending on the rental location? We’ve seen it an tested it with Rentometer’s bath filter. Adding a bathroom can give you significant returns if you have space, an extra closet, or an extra-long hallway that is close to the plumbing fixtures.
The key to making extra profits off your rental property is to always think outside the box and continuously be on the lookout for additional money-making ideas. Remember, profits are not only about adding new income revenues but also cutting down on operation costs.
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