Operating a rental unit can be a major source of both regular and passive income. However, it also comes with many expenses, and you have to ensure you are still making a profit. But when looking to expand your rental business and create new revenue streams, it can be a challenge without raising your rent.
Raising the rent may turn tenants away or discourage them from renewing the lease. So, you may ask if there is a way to gain a higher income without adjusting the rent fee.
At McCaw Property Management, we believe there are plenty of ways to increase your revenue without increasing rent. So, this article will give our recommendations on doing just that!
Collecting Overdue Payments
Even though leasing agreements regularly include penalties for paying the rent late, in our experience, they are rarely enforced. Enforcing these clauses can provide additional income for the rental owner and it also incentivizes the tenants to pay their rent on time.
Hiring a property management company can make this task easier as a landlord may not have adequate time to monitor late rent payments. Most property managers have an organized system to enforce late fee collection.
A property manager can also find any underlying cause of things and deal with the matter to ensure that policies are enforced. You gain peace of mind and the money that is due to you will be duly collected.
Charging Extra for Pets
As a property owner, you need to decide whether to rent to tenants with pets. Even though there are plenty of benefits when you become a pet-friendly rental space, there are also risks.
To protect your rental home, you should collect pet fees. So, if damage occurs, you have a fund to dip into. It is best to review the State laws before deciding since some can require pet fees to be refunded.
Be aware, however, that charging a pet fee for a service animal is against the Fair Housing Act and so should be avoided.
Build Relationships
Being a great landlord is about not only maintaining the value of your rental home through constant upkeep but it’s about building relationships. So, a property owner needs to conduct regular property inspections. They can check for leaks, the pipes and evaluate the gutters and roof for damages.
Scheduling property repairs are part of the duty of the landlord. So, it is advisable to find and maintain strong partnerships with local service providers. As a repeat client, they can also offer you discounted prices.
This is also a great incentive to engage the services of a property management company such as McCaw Property Management. With our experience in the industry, we have built a solid network of vendors and contractors.
Create Storage Spaces
If you want to earn more money, you can follow suit and offer extra storage spaces to your tenants for a fee. Having an unused space in your building allows you to convert it into a storage space. These can be attics, basements, and garden sheds.
If your rental market is focused on families, they will often need extra storage space. If you own a multi-family unit, you can also capitalize on this opportunity.
Storage spaces are a lucrative way to generate more income. The emptier spaces you can use for additional storage, the better for your wallet. You can even consider renting it out outside of your tenants.
Offer Parking Spaces
Parking spaces are one kind of renovation that is always in high demand, especially in dense urban areas of a city. If your renters own any vehicles for commuting to work, they will need a secure area to shelter their cars.
Offering parking slots for a fee can be a good income source. Renters are also well aware that it is an accepted practice to pay extra for a parking space. So, if you have more parking spaces than the number of renters, you can even extend your pay-for-parking business to your neighbors.
If your rental property is near many local attractions, you could even advertise to tourists that they use your parking area for a small fee.
Bottom line
Making an extra income from your investment property need not require an immediate rental price adjustment. Creating more storage, offering parking spaces, or charging pet deposits can provide you with extra income.
But evaluate each tip before launching it. Check if there’s actual demand and review the laws beforehand.
Having the assistance of a property management company can help the process become easier. They have the skills and relevant knowledge to manage your property investment.
If you need the expertise of an experienced and trusted property management team, contact McCaw Property Management today! We are open to inquiries and we look forward to maximizing your returns from your rental property investment.