Landlords who have long-term tenants should look for creative ways to earn more. Increasing the rent should only be used as a last resort amidst rising property management costs.
A little bit of rent adjustment would be understandable when the inflation is high. But ask yourself, how much can you pass over to your renters? What’s your priority: retaining quality tenants or generating a quick profit?
Many potential moneymaking opportunities are available to try. As such, it’s important to be open-minded and resourceful. This way, you retain your high-quality tenants and earn more side income. Here are tips to make additional income:
1. Offer convenient services to your renters.
A landlord has various ways to create more income streams by offering in-demand services around the property.
Here are some ideas:
- Laundry services – you can pick up and deliver laundry to the tenant. This is a popular service since some renters can be short on time. They like to have clean and ironed clothes to use right away.
- Dog assistance services – you can offer to walk your renters’ dogs or take them to the vet. You can also offer to groom their pets if the owners have busy schedules.
- Babysitting services – if your tenants are busy, working parents, they’ll need an extra hand. You can babysit their kids, especially when they have important functions to attend.
- Cleaning services – life can be hectic, and sometimes it can leave little time to perform a cleanup. Your tenants may want to take advantage of your cleaning services on stressful days.
- Landscaping/gardening services – if your tenant has a yard and garden to maintain, you can offer to trim the bushes and mow the lawn. Some tenants may be busy, sick or too old to manage the gardening job.
2. Consider installing solar panels in your rental unit.
Even if solar panels require a higher investment cost, the savings you’ll get are huge in the long run.
Here are some benefits worth thinking about:
- Environment-friendly – climate change is an important topic nowadays and it’s best to contribute to sustainability. Some renters may also appreciate this green approach and resulting utility savings.
- Tax incentives/energy credit – to encourage people to be more environmentally friendly, a couple of states provide tax incentives. This inspires homeowners to use solar panels and earn credit.
3. Go for a furnished rental.
A landlord can earn a higher income for furnished rentals than an unfurnished one.
Here are the advantages of furnished units:
- Tax breaks – when you purchase furnishings, you get to enjoy tax deductions. This can earn you more in the long run compared to unfurnished rentals.
- Reduced vacancies – renters often prefer furnished units since they don’t have to use their own money. They like the convenience of moving in right away.
- Easy to market – there’s a greater pool of tenants who will apply to rent furnished units. This leads to lower maintenance expenses spent on an unoccupied rental property.
4. Capitalize on the popularity of the Airbnb trend.
Travel is a preferred mode of entertainment for people these days. Landlords are opening up their rental units to this profitable method of earning extra.
These are some of the benefits:
- A higher rate for short-term stays – it’s obvious that you can generate more profit on a per day rental rate than on a monthly or yearly basis.
- Secure payment process – Airbnb has several booking partners that have solid systems for convenient payment. It’s reliable, quick and efficient.
- Collect cleaning costs – because turnovers are frequent, you want to prioritize cleanliness to attract more short-term renters. You can collect cleaning costs on top of the daily rental charge.
- Ask for a security deposit – even if the stay is short, you can still hold onto a security deposit. This protects you by having a buffer for potential damages or losses.
- Generate positive reviews – with Airbnb’s popularity, it’s easy to gain good reviews, further attracting new renters. You don’t have to spend a lot on marketing since the feedback and photos are all present on the website.
5. Rent out extra spaces.
Your property may have extra rooms or spaces, and many of those can be a source of additional income.
Consider the following spaces:
- Storage room – a lot of renters wish they had extra storage space for some of their miscellaneous belongings. You can convert an old room/ smaller room into a storage unit for additional storage rent.
- Parking lot – if you have an extra wide area or garage, you can convert it into a parking space. This won’t be limited only to tenants and can be a lucrative source of earnings.
- Garden shed – you can rent a shed to tenants to keep their gardening tools and equipment. This lessens the clutter in their homes.
6. Install a vending machine on your property.
Vending machines are popular for their convenience and affordable items. If you have a multiplex or an apartment, this will generate extra income depending on the number of tenants you have.
Here are some advantages of adding vending machines:
- Convenient – it’s a self-sufficient income generator. It’s easy to maintain and there’s no need to hire additional manpower to run it.
- Secure – a security camera is installed for monitoring.
- Multiple payment options – tenants can pay in ways they prefer. They can use cash, payment apps and cards.
- Range of products – you can sell a variety of products and display cosmetics, food, drinks and even detergents.
Bottom line
Some years the economy may be down. During these critical times, you can help show support to your tenants by not increasing rent prices. It will also enforce tenant loyalty.
You can make this a win-win situation by finding alternative ways to earn more. Your tenants will appreciate the additional convenient services you offer. You’ll be more attuned to your tenants’ needs.
Are you looking for a trusted property manager in Antelope Valley, California? Don’t hesitate to call Doug Anderson Property Management at (661) 945 5444. You can visit our website at dougandersonpropertymanagement.com.