Your goal behind owning rental properties is pretty clear, you want to make money. And that is not a bad thing. But it can be frustrating to look at a rental property and know that it could be bringing in more money for you. As the landlord you know very well that if you raise rent too much or too often, your tenants will leave and you will be losing a lot of money. But what you need to focus on are other ways to generate additional income from your rental property.
One way to generate more income is to install coin operated laundry facilities in the building. Not only will this provide you with some extra income but it is also an added convenience for your tenants. If you can’t afford the initial investment in the machines check out local vendors who will install their machines and pay you a percentage of the earnings. Another feature that you might want to consider adding is a storage area, locker or shed. Most apartments do not offer a lot of room for storage so your tenants might be very happy to be able to purchase on site storage for an additional monthly fee. You might also want to consider installing vending machines in your building. If you can afford to purchase the machines and have the time to refill them, then you can make a great profit over the cost of the items that you sell. A monthly trip to a big box store would let you purchase the vending machine goods at a greatly reduced rate.
You might also want to offer your tenants the option to upgrade certain features in their unit for an additional fee added to their monthly rent. Offer to add a dishwasher or maybe an extra-large refrigerator knowing that it will increase the value of the unit for the next tenant and that you will be able to pay for it with the increased rent from the current tenant. Another option would be to offer extra parking spaces for a fee each month. Limited parking spaces might mean that some tenants rarely get to park in your lot, but offering reserved spaces could help them to park closer to home and would provide you with added income.
One final option might not seem to be bringing in any more money but it will be putting more money in your pocket each month. If you can find ways to cut your expenses then you will in a sense be making more money. Are there repairs that you could make yourself rather than paying someone else to do? Can you eliminate any services that you don’t really need? Have you noticed that the water bill keeps going up? Tour the building to see if you can find leaking faucets in the common area or in the laundry area. Is there a faucet outside that could be dripping or is being left on? Fix it or even remove the handle so that it can only be used by you or members of your staff. Trying just a few of these ideas can help you to maximize the money coming in from your rental properties.