As a property owner, you’re always trying to find balance between increasing the rent and retaining your tenants. You want to earn more returns to fund new investment projects and property upgrades. However, at the same time, when the economy is in a downturn, you don’t want to risk a tenant turnover.
So, how do you increase your income without a rent increase?
Well, you want to create various streams of income to increase your profitability.
In this article, we will offer you ways to earn more money without automatically resorting to a rent adjustment.
Here are alternatives to making more money:
1. Install a Vending Machine
This is an easy way to increase your income since people value convenience. If you have a vending machine filled with food, drinks, sanitary pads, detergent and cosmetics, you can easily earn more revenue.
Even if there’s an initial cost of purchasing the vending machine, you can gain back the return month after month. The best thing about this is that it’s self-serving so you don’t have to hire staff to manage it. There will also be scheduled services to keep it from breaking down and to review the security technology attached to it.
The best area to place your vending machines is near a common area. That way, many people pass by it every single day.
In addition to vending machines, you may consider installing arcade games as well. This is a good option if your apartment complex has many kids.
Having arcade games can also bring a sense of community to your property and act as a family activity, so it’s always a good idea!
2. Rent Out Parking Spaces and Other Amenities
Parking spaces are rarely guaranteed, but most people own cars. That’s why it’s a good idea to rent out parking spaces per week or per month. If your property is near a local attraction, then you can also use your parking lot to earn revenue from those who need a parking space for special events.
Aside from that, you can also buy a couple of washers and dryers and have a laundry area just below your building. This way, it’s convenient for the renters to wash their clothes and you’ll also earn an income doing so.
You can even decide to charge an extra fee to collect and deliver the laundry to those who lack the time to do a self-service laundry.
3. Rent Out Extra Storage Space
Most condominium units are a too small and renters always need extra space. This is a great opportunity for you to consider using a vacant unit for that extra storage space. In doing so, you can gain additional profit without resorting to a rent increase.
Tenants will appreciate having a safe nearby space to store their extra belongings. Some of these belongings can include:
- Large bulk items: these items can make their tiny apartment units appear even tinier, so they will like to store them elsewhere.
- Seasonal items: this can include winter sports equipment and winter clothes.
- Extra appliances: if you have appliances that you have collected over the years, you can store them here, too.
4. Opt for an Eco-Friendly Rental
By choosing eco-friendly properties, you will save on utility expenses.
This alternative means investing in solar panels to save on electricity. If your rent includes electricity, and you save on it through the solar panel installation, then you’ll have the bigger chunk of the rent going to your pocket.
5. Furnish your Rentals and Turn Vacant Units to AirBnB
You can charge a higher rent when your rental space is furnished.
With this choice, you only need to invest once since the furnishing stays with you when a tenant moves out. Then, you can again charge a higher rent for the next renter. If your rental property is a vacation home, then there’s all the more reason to purchase furnishings to complete the look.
In fact, you can even maximize the opportunity by converting vacant units into AirBnB rentals that are hugely popular. A daily or weekly rental can be much more lucrative in comparison to long-term rental stays. So, whether you have long-term or short-term renters, you’re secure enough to know you have an extra cash flow on-hand.
6. Charge a Pet Rent
If you have a pet-friendly rental property, one of the benefits you get is creating another income source through charging pet rents. Aside from the regular monthly property rental payments, you’ll be able to collect extra fees from pet owners. This is commonly practiced!
7. Offer Convenient Services
Here are some convenient services you may consider offering:
- Laundry services to pick up and deliver a tenant’s laundry
- Dog-walking services or pet grooming services
- Open up a babysitting service for families that have young kids
- Cleaning services
- Errand services
- Gardening services
The opportunities are certainly endless if you know the needs of your tenants. Convenience is a priority these days, and for busy people, they’re always willing to pay a bit extra. Hence, you can maximize income opportunities this way.
Increasing your rent can frustrate some tenants, so it’s best to carefully strategize for other alternatives. This might even be more lucrative compared to adding a few dollars on top of the existing rent.
For further inquiries, contact McGuire Property Management today.