Do you want to boost your rental income?
You can get more creative than raising the rent! Sudden hikes in rent may be illegal in your area. Even if it's allowed, doing so multiple times may result in a higher tenant turnover rate as well.
Having an entrepreneurial mindset is useful for landlords. It’s possible to make more money without touching the monthly rent amount. Stay open-minded, and you’ll find exciting ways to create additional streams of income.
In this article, we're going to list the top ways you can increase your rental income without having to make changes to the rent payments. Try these approaches and see if they're a good fit for your financial goals.
1. Put Home-Sharing Platforms to Good Use
Empty rental units generate running expenses while providing zero income. Fortunately, you can use home-sharing platforms like VRBO and Airbnb to rent out your unit between tenants.
A great thing about these platforms is that you can tap into the market for holiday and short-term business rentals. The cost per night can be much higher compared to having regular tenants in your property.
2. Provide Space for a Cell Phone Tower
Did you know that you can earn extra money by leasing out space for erecting a cell phone tower? The average rent amount you can ask for this varies between $1,200 to $1,500. In some areas, the income could be even higher.
Significant figures are getting paid to landlords who lease space to telecommunication companies or other institutions. Just keep in mind that having a cell phone tower next to your rental unit could affect its perceived value.
3. Install a Vending Machine
Add an automated vending machine to the common area of your rental property. Storage or laundry rooms work great too. Make sure it carries basic conveniences like snacks, toiletries, sodas and sports drinks.
Brand new machines are expensive. However, you can always purchase a used vending machine. Buy the items in bulk and charge up to 50% more than what you bought them for.
Decent traffic around the vending machine can lead to enjoying a decent income stream. Once everything is up and running, ask people for feedback. Maybe you missed some of the desired products that could sell like crazy.
4. Enforce Strict Late Fees
The enforcement of strict late fees prevents the situation from causing you to leave money on the table. Ideally, your tenants won’t delay their rent payments. Though, if it does happen, collecting the associated fees is an extra income on top of the monthly rent.
5. Get Solar Panels
Installing solar panels to your rental property creates numerous ways you can earn additional income.
- You can sell excess energy to a company that agrees to pay for it.
- You can charge your tenant for using the solar-powered electricity.
Check with your local institutions to see if the installation of solar panels entitles you to any financial benefits.
6. Charge Pet Fees
The majority of households in the U.S. have pets. When you haven't designated your rental unit as pet-friendly, you miss out on additional income. Allow pets on the premises to open new ways of making money.
Pet fee and pet rent are two of the most common approaches. A pet fee is a one-time expense for your tenants. However, pet rent is usually a monthly fare. Additionally, you could offer dog walking services to your tenants.
7. Offer Storage Space
Rental properties often lack enough storage space. If your rental unit is different, take advantage of that unique opportunity. Put the attic or basement space into use for paid storage.
This is an especially lucrative option when you own a multi-family property. Your renters are likely to take up the offer regarding extra space to store their personal belongings. It’s even possible to provide some storage room for non-tenants.
8. Provide Paid Upgrades
Offering extra services could get you the desired additional income. Say you have a rental unit with a lawn. You can then maintain that lawn by providing lawn service to keep everything tidy.
Providing these services doesn’t mean that you have to do the hard work. Instead, you can charge the renters for finding and maintaining the relationship with a qualified professional. That could get you $10 or $20 on top of the monthly rent amount.
9. Rent Out Your Rental’s Garage
Limited parking space in your property's area creates new income opportunities. The particular amount you’ll get from this venture depends on where your property is situated. Expect extra income anywhere between $50 and $250.
10. Purchase a Laundry Machine
Get a coin-operated laundry machine if you have a condo or apartment complex. Some landlords have seen returns of about $750 to $1,500 when they respectively had three and six units in a building.
However, you may not have a multi-unit property. In this case, you can provide a combination of washer and dryer amenities. Ask a monthly charge for this. You could get up to $350 per year for that set-up.
In a Nutshell: Increase Your Income Without Raising Rent
Being a successful landlord is all about growth. While most rental owners want to increase rent, you can explore other avenues for income boost as well.
Here are some of the top ways to increase your return on investment:
- Offer storage space in the basement or attic
- Enforce strict late fees whenever a tenant is late
- Use home-sharing platforms during tenant turnovers
- Install a coin-operated laundry machine in multi-unit buildings
- Designate a pet-friendly rental and charge pet fees
- Lease out space for a cell phone tower
- Provide paid garage space for anyone in the area
- Install solar panels and sell the generated energy
