When you are a landlord, raising the rent is not the only way you can increase your rental income. There are heaps of innovative solutions you can use to make some extra cash.
Here are our top ways to increase your income, without upping the regular monthly rent:
According to the American Pet Products Association 2017-2018 National Pet Owners Survey, sixty-eight percent of US households own a pet.
Because many landlords do not want tenants with pets renting their properties, this causes a shortage of pet-friendly rentals.
By not excluding tenants with pets, you are able to tap into a niche renters market.
It is becoming increasingly popular for landlords to charge a "pet rent"; an amount paid in addition to the regular rent to cover the wear and tear of having an animal.
Many landlords also charge a separate pet deposit which is refunded when the tenant moves out, if the pet hasn’t caused any damage. Some will charge a pet fee which is not refundable. Refer to your state laws to check whether these practices are allowed in your state.
For more information on the pros and cons of offering a pet-friendly rental, check out our article: Should I Allow My Tenants to Have Pets?
Related: The Smart Landlords Pet Policy
Many landlords stress when they have a vacant property. An empty room can often mean money flushed straight down the drain. This often causes cash flow tight landlords to panic and settle for less than perfect tenants.
If you have a vacant property, don't worry - simply rent it by the night on Airbnb, until you find a longer term tenant. With the right demand, it may only take a week or two on Airbnb to make up for the lost rent.
Airbnb has quickly evolved into a viable way to run in a business. Check out our article for more information on whether you should be listing your properties on Airbnb during vacancies.
Storage and parking: two things highly sought after, especially in the city. If your rental property has these amenities, then BINGO - you are in luck. Think like a real business person and put a price on these amenities.
If you have a garage or an off-street car park, do not include this in the price of the rent. You can offer the car park for an extra amount per week to your tenant, or if they don't have a car, rent it out to a professional who works nearby.
The same applies for storage that is outside of the house or apartment (and doesn't interfere with the tenant's right to quiet, peace and enjoyment). Secure storage is often hard to come by, especially for those who live in apartments!
The amount you can charge per month for parking or storage will depend on the area. To work out whether this would be a viable option, check out how much the local parking lot or storage company is charging for a similar sized space.
As landlords, we get so tied up in leasing the inside of our properties, that we forget about the outside. If your rental is a larger apartment or commercial building, billboard advertising may be a great option to generate more income.
Depending on the geographic location, size, visibility, traffic and format, a billboard can cost from $250 (in rural areas) to $14,000 per month (in larger markets).
That is a lot of passive income, for not a lot of work!
We hope you found this blog interesting! However, do note that it should not be used as a substitute for competent legal and/or other advice from a licensed professional.
Unless you are the world's best handyman, landlords need to rely on contractors to help get the job done. While finding a contractor is generally an easy task, finding one who is reliable and affordable can be a different kettle of fish. Let's dive in further...