It’s common for landlords to find innovative ways to generate more income. This requires a little imagination rather than opting for the shortcut of raising the rent.
Renters can become upset when they receive a notice that their rent is being increased. This can mean tighter budgets and less disposable income. This can result in tenants either having to move out or take on more work to offset the higher rent prices.
As a landlord, you want to encourage tenants to stay long-term as it means generating a steady stream of passive income. This cannot be achieved if tenants feel like they have to move due to higher rental rates.
Before making such a move to increase rent and risk losing your tenants, it’s best to explore other ways to increase your income sources. This piece will provide you with some ideas you can use to try to increase your passive income without affecting the rent price.
Market your vacant unit on alternative platforms
There’s no need to panic when a tenant decides not to renew a lease. You can always convert your unoccupied unit into a holiday rental. VRBO and Airbnb are reliable platforms that advertise short-term stays.
Landing frequent guests can earn you additional income and pay for the cleaning expenses. Even better, short-term rentals produce solid returns as long as your vacant unit is popular with guests. This will also allow you more time to search for qualified long-term tenants.
Place a vending machine around your premises
Often, vending machines are silent income multipliers. As a convenient source for snacks, drinks, and toiletries, they naturally attract consumers. You can maximize this opportunity by setting vending machines around your rental space.
The initial cost may seem steep but you can always opt for second-hand machines. Study your demographics. If your current renters have little kids, you can place more chocolates and candies in your machine.
Just ensure your vending machine is located in an area where people always pass by. This way, it’s always in their line of sight. They are prompted to use the convenient machine whenever a craving strikes.
Collect late rent fees
As a landlord, you rely on prompt rent payments. You need to insist that tenants meet their rental obligations. You can include penalizing late payments with additional charges in your lease agreement. This serves as a deterrent to late payments and has the potential to earn you additional income.
Always refer to state and federal rental laws when it comes to applying grace periods for late rent payments. For late rent fees, make it a reasonable amount. Again, it’s vital to review the state laws in case any maximum percentage must be applied.
Don’t hesitate to collect pet fees
The number of pet owners in the country continues to increase each year. Don’t miss your chance of collecting an additional income stream. For property owners, it’s common practice to ask tenants with pets for a pet fee or pet rent.
Pet fees are one-time charges while pet rents are recurring monthly charges. Being a pet-friendly rental can be a good option to increase your income aside from opening up your prospective tenant pool.
Offer additional services
Renters in Raleigh, NC are open to paying someone to manage their lawns and pools. As a landlord, you can take care of this maintenance task by collecting an additional service charge. You can link up with a vendor to provide this service.
By acting as a middle man, you can earn a consistent income while still protecting your time. What’s more, you’ll feel better knowing your Raleigh property is maintained by a professional landscaper or cleaner and tenants will feel happier and more comfortable in the space.
Turn your empty rental garage into a profitable space
Finding a parking space is often a problem, especially in a high-density area where city attractions are commonly found. If you have an empty garage area, this can be advantageous for you since you can rent out that space. Even if it’s a small fee, it will add up over time.
Offering parking in the rental listing will benefit your business as parking is often an in-demand amenity.
Offer an extra storage space for a fee
A lot of residents often have more belongings and lack the spaces to hold them. If you have an empty space for storage such as garden sheds, basement, or attic, you can promote them as storage spaces for rent.
Perhaps a renter needs additional room to place their sports equipment. You offer them a convenient place for storage while producing additional income.
Think about using solar panels
Solar power lowers utility bills. You can ask your renter to pay a fee for tapping into the installed solar-powered electricity. Some states also provide financial earnings to landlords who use solar panels. You can make money from selling the extra energy to companies.
Install a coin-operated laundry machine
Generally, additional amenities are attractive to renters. If you own an apartment, invest in several laundry machines. It’s convenient to use for renters and also provides you with recurring income.
Although it will be a steep price to pay upfront, if you have several units rented out, you can make that investment back and then some fairly quickly.
You can also opt to rent out a washer and dryer if you own a townhouse or condo unit. Just make sure to keep the machines in good maintenance and conduct periodic inspections.
Bottom line
Finding alternative income streams is always beneficial for both landlords and tenants. The renters are safe from spending more on rent payments while the landlord opens more income streams.
Offering tenants new amenities in changes for small fees can entice them to stay long-term which also protects your income stream.
If you would like help managing your rental properties, contact the experts at Schambs Property Management today!