Are you looking to grow your earnings as a landlord? The default method is usually raising the rent. However, you can do better than that. Use some creativity to find alternative means of increasing your income.
Rent price hikes can cause a backlash and can even result in high turnovers. It’s best to find other income-generating techniques that don’t include rent increases. Keep a flexible attitude and you might just discover several income streams that have the potential of being far more profitable.
This article will offer a variety of ideas on how to increase your income without placing the burden of paying a higher rent on your tenants. Incorporate some of these tips to help you achieve your financial objectives!
Tap Into VRBO and Airbnb Platforms
Do you have a vacant unit? This can be quite costly as the unit still generates expenses considering the maintenance costs and extra cleaning fees. Instead of waiting for a renter who prefers a fixed long-term lease, you can offer your rental property to short-term guests.
They can cover the cleaning fee. What’s more, you won’t have to worry about systems in your home breaking down because of a lack of us if you have short-term renters coming in. Using these popular platforms can also translate to better earnings since short-term payouts can be more lucrative than fixed rent payments.
Install Solar Panels
Many people are looking to save on utilities by using solar power energy. You can exercise initiative by installing solar panels and solar lights. This can help reduce the renters’ utility bills. You can even earn extra by letting them use your environmentally-friendly panels.
You might also want to take advantage of the tax incentives and energy credits available in some States. It will also make you feel better to promote energy efficiency in running your rental business.
Consider Installing a Vending Machine
You might think that installing a vending machine requires a hefty investment. But you can obtain a second-hand machine at a fair rate. Vending machines are cash cows in the sense that they’re easy to maintain while providing you with a solid profit.
If you’re an owner of an apartment complex, you can place a vending machine in a high-traffic area of the building and pack it with candies, drinks, and other convenient products. The best thing is it’s secure and you won’t need to hire extra help to manage the vending machine business. Just make sure to match your products with items that your renters need.
Collect Late Payment Fees
Part of your lease will emphasize that tenants make timely rent payments. However, you can still accept late rent payment provided you earn an additional late rent fee. This discourages tenants from delaying their payments while at the same time, you earning extra for the inconvenience of receiving a late payment.
This should be strictly enforced and detailed in the lease agreement. You can’t collect late rent penalties from one tenant but excuse them for another one. Be fair and treat every tenant equally to avoid complaints and legal issues.
Charge Extra Fees for Tenants with Pets
You may want to consider opting for a pet deposit in exchange for being a pet-friendly rental property. With the surge of pet ownership, opening your doors to tenants with pets can be lucrative and make your investment property more competitive in the market.
Be sure to follow Washington’s laws on pet deposits and include all pet policies in the lease agreement.
Offer Paid Service Upgrades
Focus on the extra benefits you can provide to your renter. Do they need to have their pool cleaned, their lawn mowed, or to keep up with the landscaping? This is an opportunity for you to offer your paid services. It makes it convenient for the tenants to keep the unit reasonably clean.
This can even be less work on your part if you act as a middleman. If you budget correctly you can refer an excellent service contractor to complete the job while still generating extra income. The budget can also ensure that you’re covering costs you don’t always notice.
Collect a Parking Fee
Good parking areas are often limited. The more dense the area, the more challenging it is to find a convenient area for parking. If you have the space available, offering a parking spot can serve as a great income source. This can be a lucrative and steady income stream without too much maintenance.
Use a Coin-Operated Washer and Dryer
Plenty of hostels offer this service for convenience and as an extra income source. If you have an apartment or multi-family property, this can be an excellent added source of income. If you have a high volume of renters and you have the space to add coin-operated machines this can benefit both you and the tenants.
If you’re only servicing a couple of renters, you can still offer a washer and dryer for a fixed monthly fee. Most renters will find it convenient to pay the regular fee rather than bringing their laundry to a laundromat or purchasing a new washing machine.
Rent Out Extra Storage Space
Storage units are big businesses. Renters value additional storage space in their unit or on the property. You can capitalize on this opportunity by simply offering a secure storage area. It can be a shed for their garden tools or an attic or basement for sports equipment.
A lot of people are always on the lookout for rentals with extra storage to house their seasonal possessions so you can take advantage of that when marketing your units.
Bottom Line
Opting for traditional ways to earn a rental income can be limiting. Entertain new ways to boost your earnings as they can be a win-win for both you and your tenants.
If you would like help managing your rental properties, contact the experts at T-Square Properties today!