As a property owner, you're allowed to increase the rent of your rental property. That said, when you do so, you risk upsetting tenants or discouraging them of renewing their lease. If that's the case, looking for new renters takes a lot of work, time and money.
So, how do you earn more income without increasing the rent? That's the question we'll address in this article!
There's a vast opportunity to earn additional income when you own a rental property. The following are 7 ways you can make more money without raising your rent:
1. Set up a vending machine.
Vending machines are beneficial for both renters and landlords alike. Renters will appreciate the convenience of having snacks and beverages readily available in the property. As a landlord, you'll enjoy receiving the extra income from the vending machine sales. Typically, vending machines will accept cash or card. They also normally have an attached camera which is good for detecting vandals.
If you're worried about the cost of the vending machine, consider buying one second-hand. It'll be more affordable than a brand new one.
Similarly to vending machines, you can also install arcade games. This will be a big success and wonderful income opportunity if your property has many children.
2. Charge for parking spaces.
Consider renting out your vacant lot. This isn't limited to your tenants. You can also make it available for non-tenants. You'd be surprised at how many prospective renters would be interested. This is a great, low-maintenance way to earn passive income. If you're location is attractive, there's a change for sizeable income!
3. Offer convenient services.
Many tenants will be willing to pay for services that can save them time.
Consider offering your tenants the following services:
- Laundry pick-up
- Food delivery
- Professional cleaning
- Pool maintenance
- Lawn mowing
Study the needs of your tenants and then determine services that would be beneficial for them. This is a lucrative way to earn side income since the services are continuously required.
4. Rent out extra storage space.
Some tenants are seeking extra storage space for excess possessions or belonging that they aren't ready to give up.
So, if you have space, start charging for additional storage. This is another low-maintenance method that has great potential for high returns.
The storage industry is big business. If you have a vacant garden shed, you can also charge for its use. People generally want to keep their gardening tools within easy access.
5. Join the AirBnB trend.
If you have vacant units, transform them into AirBnB rentals. Initially, you may be spending money on furnishings and design in order to make the space more attractive. However, it's a good investment. The more attractive the space, the more bookings you will earn.
The returns are high for short-term stays as the units come with furnishing.
Not to mention, when you want to advertise your property on AirBnb, it's free! So, you don't have to pay additional money for listing. You'll only pay for service fees during booking. Fees will be higher if your rental home is centrally located and near local attractions.
6. Charge late fee penalties.
Be firm with your rent collection policies. If a tenant pays past the due date, charge a penalty. Not only will this provide you with extra income, but it will also discipline renters to be accountable with their payment dues. Being too lenient will affect your rent collection. This is bad for business since it can affect your immediate returns.
7. Charge a pet rent.
A pet rent is an additional charge you can ask from tenants who own a pet. If you don't allow pets in your rental, you're narrowing your potential returns.
There are multiple ways to earn a side income. You don't always need to raise the rent if you want to increase your income. You only need to be more creative and strategic. It also pays to study your tenants' needs and priorities. When you do, you know how to earn additional income in a way that'll also benefit them.
Consider the following:
- What services will be convenient for them?
- Do they own a pet?
- Are they units small? Are they seeking additional space?
- Is there limited parking in your city? Can they use a parking space?
It will also benefit you to check what you have to offer. You may have overlooked extra spaces that can be converted into profitable avenues such as parking lots. Generating additional income is actually easier when you already have a set of customers in your property. You just need to align yourself with products and services that will help make your tenants' lives easier.
Should you need a professional property manager for your Fleming Island and Jacksonville Florida rental property, contact Gifford Properties & Management, LLC. We can be reached at (888) 870 5070. You can also visit our website at www.giffordpropertymanagement.com.