Owning a rental property can generate a sizeable income over the years. You may increase your rent periodically to pay for improvements and rising maintenance costs.
Some years, however, when the market is in a downturn, you still might want to increase your income without resorting to rental increases. Long-term tenants are more important than the short-term gains from a rent increase.
So is earning more possible without touching the rental amount? It is! Here are tips that you can try to maximize your earning potential.
Use solar panels to reduce your utility bills.
Initially, one may shell out a higher cost for installing them in your rental property. However, there are several benefits to having solar panels.
Solar panels can attract tenants who are more focused on environmental sustainability. With climate change, people are more aware of the need to be. Some states also offer tax incentives or energy credit. This motivates residents to welcome solar panel additions to the rental space.
Something to consider is the property location. If you get maximum sun exposure, installing solar panels is a reasonable method to reduce utility bills. In fact, if your summers are very hot, solar panels will help tremendously to pay for the air conditioning bills that can be rather high.
If you only have minimal sun exposure and have no state incentives, then this plan may not be for you.
Opt to be a furnished rental.
Furnished rentals fetch higher rent. This way, you don’t have to keep increasing your rent since your earnings will be higher than an unfurnished rental. There are also tax breaks you can often get. The cost of purchasing furnishings can be deducted when filing your taxes. Initially, you will be spending more upfront, but it will still payback in the future.
Another encouraging thing about a furnished rental is you’ll rarely be scrambling to find occupants. It’ll be easier to rent out. Thus, saving money through reduced vacancies is a real advantage. You won’t be paying for maintenance costs that can be steep when you don’t have any renters. A steady income is definitely a good way to gain more income long-term.
Consider renting out your garage.
Making extra cash is doable when you transform your garage to be more income-generating. In cities where space is prized, tenants or non-tenants would be glad to find parking space to keep their car or motorcycle secure. This is also useful in areas where public transportation is inconvenient.
Additionally, if you live in a congested urban location near a local attraction, people would also welcome a parking area. As long as their vehicles are safe, they’d be willing to pay extra.
One of the first things you have to do when renting your garage is to clean it thoroughly. Remove all the junk and make sure that the garage door operates smoothly.
Next, determine the rate for the monthly rental, or if you plan to make it a weekly or daily rental, then that’s also acceptable. Check the normal rate around your neighborhood to assign a fair rental price. You can then advertise and show your garage to interested potential customers.
Ride the Airbnb trend.
Think about turning vacant rooms or rental homes into an Airbnb rental. The rising popularity of travelers booking via the app is worth evaluating. It’s a very lucrative income-generating strategy.
Short-term tenants use Airbnb for the security it provides. The details of the host/ property owner are always available. The platform also has a secure payment process giving the renters peace of mind.
Landlords earn better when partnering with AirBnb. A daily or weekly rental is higher than a monthly rental fee. You can even charge a cleaning cost and ask for a security deposit. This is good protection to ensure minimal damage to your property, even if the turnovers are frequent.
Add a vending machine to your rental property.
If you have an apartment complex, then your tenants can use the vending machine as a common area to meet up. You can sell a variety of products from food and drinks to detergent for more revenue. Convenience is always welcome. Even if people spend a bit, the volume adds up if it’s frequent.
The cost for installation may be high, but considering the profit margin, it’s worth considering. Second-hand vending machines are also available. What makes it work is the self-sufficiency it offers.
You don’t have to hire extra staff to monitor the business. Security technology comes with the package and maintenance services can also be scheduled. In terms of payment, there are a variety of acceptable methods such as cash, cards and payment apps.
Offer convenient services.
In this age where time is crucial, convenient services are welcome.
These can be laundry services with a pick-up and delivery option. Dog services such as walking, grooming and taking to the vet are also in high demand. For busy parents, baby-sitting services are very encouraging, especially when they need to attend important events.
Maintenance/cleaning services are another area to generate additional income. You can offer gardening services to mow a lawn, pull out weeds and trim bushes and trees.
Make your services affordable since this can be recurring income. The tenants will be greatly relieved knowing they have other options when time is running short. It also contributes to overall high quality of living. Children, pets and the general property upkeep don’t have to be neglected when times are busy.
Offering convenient services is a profitable avenue to increase your bank account without burdening your tenants with an increased rental rate. Thus, you’re likely to earn tenant loyalty in the process.
