5 Ways to Generate Additional Revenue with Your Rental Property

5 Ways to Generate Additional Revenue with Your Rental Property
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Are you in need of more ways to make additional revenue with your rental properties?

There can be no doubt that rental properties are the investment gift that keeps on giving. There are 101 ways to collect more money from your rental units and we’re going to give you five of the best examples.

Let’s get right into it.

Tip #1 Charge pet fees

67% of U.S. households own a pet. This means more than half of the people looking for accommodation will have some sort of pet. This gives you a great reason to allow pets in your units.

For reference, the American Pet Productions Association tells us that dogs are the most common pet, followed by cats, fish, and birds.

This is valuable information because by making your unit a pet-friendly space you can collect additional revenue in the form of pet fees.

You can charge a non-refundable pet deposit ranging between $200 and $600 when your tenant moves in plus a monthly pet rent averaging $25 per pet.

Tip #2 Consider a coin-operated laundry

Apartment complexes aren’t created equal. Some units just don’t have all the modern-day amenities that make life convenient such as in-unit laundry.

If one or several of your units are like this, you might still turn things around by providing tenants with a coin-operated laundry in the building.

Tip #2 Add vending machines

Following hot on the heels of setting up a coin-operated laundry in a multi-unit complex, you might also think of adding a vending machine or two – think combination snack and drink machines.

The advantage of vending machines is that you don’t have to buy them outright as they can be a bit expensive. By conducting a bit of research, you will be able to see if you can lease one to trial.

Renting a vending machine gives you enough room to test the concept without purchasing the machine at full price and assess if it will be profitable in the long run.

If your tenants have children, you might want to start small with say a gumball machine. This is definitely a low-cost nearly passive way to make additional revenue.

Tip #3 Collect extra tenant fees

Do you know how many adults will be moving into the unit with the person you signed the lease with? This is a very important question to ask as you will also need to conduct a background check on every additional occupant who intends to stay on your property.

How much should you charge for extra tenant fees?

Extra occupant fees can be anywhere from $50 to $100 depending on your rental unit’s location. It is imperative that there is an ‘extra tenant clause’ written in the lease. In this way tenants won’t breach their lease and also cannot claim you never told them about the fees for each additional occupant that comes to live in the unit.

Tip #4 Provide satellite TV

If you own a multi-unit you can approach your TV service provider to negotiate an exclusive discounted satellite TV package for your tenants.

Not only does this work out cheaper for them but it means you’re getting an additional source of revenue without coming across like you’re trying too hard to upsell add-ons.

Tip #5 Build a storage shed

Do your tenants need more space? Do they have more furniture than they know what to do with? It might be time to consider having a multi-purpose storage shed built on your property.

A storage shed is a fantastic addition to your rental unit and an easy way to make additional revenue.

Don’t forget to mention it in your ads. Knowing outright makes life simpler for prospective tenants as they sift through various ads.

Get more tips from our team

While we’ve given you a handful of neat ideas, we recommend having a property manager assess your rental units in order to highlight extra ways in which you can generate additional revenue. Don’t hesitate to contact our seasoned property managers at PMI Front Range Colorado.

Contact our PMI Front Range Colorado agents for more information.