As a rental property owner, one of your biggest responsibilities is creating good relationships with your tenants. While you don’t necessarily have to be friends, being seen as cordial and therefore, approachable, is great for business. The impression you create will encourage your tenants to communicate their concerns freely and allow you to help them ensure they take care of the unit they’re in.
As a landlord, however, you also have the responsibility to deliver less than thrilling news, like raising the rent. Even if your tenants are well aware of your right to do so, it will still hit them hard – especially at a time of widespread unemployment.
Thankfully, if you need to increase your income, there are a few ways to do so without increasing rent:
Invest in vending machines
Vending machines do not seem like cash cows but installing one in your apartment building can generate more income than you expect. After all, people will always pay for convenience and vending machines are the very definition of convenience.
The type of machine/s you install in your apartment building will determine your revenue. Think about the demographic of your renters. What do they need more of? According to Small Business Trends, the Top 4 Most Profitable Vending Machines in 2019 offered branded sodas, snacks, cold food, and ice. If the cost of acquiring a machine is a little out of your budget, considering leasing.
Allow pets and charge ‘pet rent’
A recent study showed that 68% of households have at least one pet. If your apartment building doesn’t allow animals, you are already excluding a huge chunk of the population. Banning pets is understandable: they smell, damage property, and bark, causing headaches for landlord and other tenants alike.
However, allowing pets widens the tenant pool. It also gives landlords reason to include an addendum in their rental agreements to have tenants pay an extra deposit for damage the pet may cause. The landlord may stipulate paying extra “pet rent” for the animal occupant. The agreement may also limit the number, size, or breed of pets.
Most people consider their pets as family members. They would gladly pay a little extra in order to have their best friend with them in their new home.
Rent out storage
If you have a separate structure or unoccupied floor within your property, do not let that go to waste. Apartment dwellers are always on the lookout for convenient means to store their bulkier things. Tacking in shed rental to their monthly rent is an easy means to increase your monthly income as well as provide an additional amenity to your tenant. Even a small shed can generate a few dollars every month. Bigger sheds fetch at least $200.
Lease the building wall for advertising
Leasing a wall for a billboard is a great way to truly maximize every inch of the property that you own. This is especially true for buildings in metropolitan areas. The amount that you make every month from this stream depends on the size of the billboard as well as your location. Most billboard advertisers would do the work for you. According to a few rental unit owners, leasing a wall or the rooftop to a billboard can make you an extra $4,000 every month. Certainly, not chump change.
Offer additional services
Offering your tenants additional services like laundry pick-up and delivery is a great way to increase your income – especially during these times. You can tack on the service fee to their monthly rent.
Switch to renewable energy
Installing solar panels on your rental property entails a hefty investment. However, if your apartment is powered in part by solar energy, you become a utility provider to your tenants. For new tenants, this means paying adjusted rates by including power bills in their monthly rent. Alternatively, you can bill your tenants on the solar energy that they consume.
By charging fair rent, owning properties is a great way to generate passive income. The options above show that monthly rental income isn’t the only way to maximize the potential of your property.
At Sundance Property Management, we specialize in helping our clients with everything that has to do with rental investment. From finding the right properties to managing units, we can take on the property management task you require in Ohio, Indiana, Kentucky, Georgia, and South Carolina. We have been in the business of acquiring and managing investment properties like apartments since 1993.