10 Tips to Increase Real Estate Investment Income
There are so many possibilities in how to make money as a real estate investor. You can increase income without raising the rent or having long-term tenants. The money-making possibilities are endless and exciting when it comes to investment properties.
TOP 10 TIPS TO INCREASE REAL ESTATE INVESTMENT INCOME WITHOUT UPPING THE RENT
1. Charge pet rent
In the United States, over 65% of households own a pet. While not allowing pets in your rentals is understandable, you may be cutting out a large portion of potential renters. By allowing pets and catering to pets and pet owners, you are essentially opening a floodgate of opportunities. You can charge a monthly pet fee or a pet rent. Renters will happily pay a little extra to allow for their pet. As an added bonus, you can have a dog park for your tenants.
2. Provide furnished rentals
Furnished rentals can bring a higher rental price per month than unfurnished rentals. Corporate, cross-county, and short term renters are more likely to rent a furnished apartment and pay a higher monthly price for it. Another bonus is that during tenant vacancies the unit can be rented on Airbnb. The rent will increase, on average, more than 25% for a furnished unit.
3. Use Airbnb during vacancies
Do you have a unit that is vacant? Don’t worry. Rent it out by the day instead. You can have flexibility with showings, and make more per night than with a long-term renter. Obviously, you won’t be able to show the property or unit when you have guests, but you can schedule around the guest calendar. A unit with rent at $1,600 per month might bring in $180/night as a vacation rental. It would only take about nine nights to make up the lost rent.
4. Rent out the garage
If you own a garage in an area where parking is limited, take advantge of it by charging a fee for garage space. The amount you can charge per month depends largely on the area. In metropolitan areas, it isn’t unheard of to charge over $100 a month for garage space. Uncovered parking spots can be rented out for an extra $50-$100 a month.
5. Charge for shed storage
Storage is desired by most renters. So why let your shed go to waste? Even small storage sheds can bring in an additional $35-$50 a month, while larger sheds can bring in as much as $200 a month. Take advantage of the extra income, and move that lawnmower somewhere else.
6. Add a vending machine
Adding a vending machine to the common area or laundry area of your property could add significant income. For instance, adding an automated vending machine to one apartment building can generate more than $2,000 a week in revenue. People are willing to pay for convenience. A vending machine with food, Chapstick, toiletries, and detergens saves people time, and if they run out of something they need right away, the vending machine is a convenient option.
New vending machines can be pricey, but smaller properties can purchase one used for a few hundred dollars and start generating a new income stream instantly.
7. Lease a cell phone tower
Are you interested in earning a passive six figures? It’s very possible to do so when leasing out space to a cell phone tower. Leasing out space to a cell tower averages $1,300 per month in rent. In San Francisco, California, you can earn as much as $2,500 a month for leasing out space for a cell tower.
8. Offer upgrades
Make life a little more manageable for your residents by offering upgrades. Consider offering services similar to hotels like dry cleaning, laundry, maid service, or lawn care. People are willing to pay extra for things that make their lives easier. If people were going to be outsourcing those services anyway, it’s a huge bonus to have those available through their property management company or landlord.
9. Lease a billboard
If you own a larger building, leasing a billboard can be very profitable. Apartment buildings can charge $3,000 a month or more for billboard space on the side of the building. Imagine over $3,000 extra income a month for no extra work.
10. Add solar panels
By attaching solar panels to your rental property, you can essentially become the utility company. Adding solar panels can generate income in three distinct ways: 1) increase rent to incorporate energy, 2) sell excess energy to utility companies, or 3) charge an electricity bill to renters for using the solar energy.
Rental income is not the only way to generate money with your investment property. There are several opportunities for adding passive (or not so passive) income to your monthly revenue stream. Why not take your rental business to the next level by adding a few new streams of income?
Interested in purchasing an investment property? Search thousands of available properties here at vrmproperties.com.