Amid the pandemic lockdown, we saw our sense of community emerge stronger than ever before. Landlords, neighbors, employers, local grocery store owners, and so many more joined hands to provide relief amid the extremely stressful times.
At a time like this, raising the rent would not have been the best idea even though it became a need for many landlords as they struggled with vacant rentals and other issues. In this article, we give you 5 tips to increase rental income without raising rent.
If you've got a building, then leasing a billboard is an ideal way to raise extra income. Depending on the building's location and the size of the space available, you can earn a substantial amount of money. In fact, many owners claim to make around $4,000 per month via billboard leasing. You don't have to worry about a couple of rentals not bringing in profit with that kind of money.
People pay for convenience, and a vending machine can help you generate a substantial amount of income. If you own a single-family home, a vending machine is not a good idea, but it is an excellent option for all multi-family rentals.
You can add one to the laundry area or any other shared space and keep it with essentials that can help people avoid going out. With the coronavirus still a very dominant looming threat, a vending machine can help generate extra income and keep people safe.
An empty rental unit means a substantial loss in earnings. Imagine if an apartment unit brings in $1500 per month. It's empty and is likely to stay that way because of the uncertain economic conditions. You'd be accumulating a $1500 loss per month. However, you can minimize that or recover the full amount by putting the apartment out as an Airbnb. Even if you charge $100 per night, you can recover the cost within 15 days.
Pets are also part of the family for many. While a landlord's hesitation in allowing pets in the building is understandable, it reduces a significant portion of potential renters. You can avoid that by charging pet rent. It increases not only your income but also the number of potential tenants.
Charge for Detached Buildings
Detached storage sheds and garages are a necessity in some areas and a bonus in others. Charging rent for using them may be a good idea, especially for shed storage. It is a usable space, which, if big enough, can be converted into a separate unit, so treat it as such.
Garages, however, come part and parcel with most single-family properties. You can charge a little extra rent for a garage in a multi-family property, especially in areas where parking is an issue. You are essentially providing an additional service, so treat it as such.
There are various ways you can use to increase rental income. You can even offer minor upgrades or go solar and charge the electricity bill amount to the rent.
However, these require substantial investment. With our tips to increase rental income without raising rent, you can get around the same level of benefit with minimal investment. You can also consult with your property manager on the matter to get a better idea of how landlords maximize their rental income.