Securing a tenant for your rental property is the primary method of generating income from your investment. However, it isn’t your only method. Developing additional revenue streams allows you to maximize your rental property’s potential.
Consider these six additional revenue stream options for your rental property, and you could enjoy a greater return on your real estate investment.
1. Add a Washer and Dryer
Adding a washer and dryer to the home can allow you to increase the monthly rental rate. However, these two additional large appliances also represent additional costs. There are additional methods for adding a washer and dryer that create an added revenue stream without increasing maintenance costs. You could lease the machines and then charge your tenant a premium for these added amenities. If you own a multi-unit property, then you could create a communal laundry room. Rent the space out to a laundry vendor who provides their own machines and manages them.
2. Add Storage Options
Add a storage shed to the property. This additional space could be an add-on to the rent. If the tenant chooses to rent the storage space, you create an additional revenue stream. If the tenant chooses not to rent out the shed, you can use this space for storing lawn maintenance equipment or tools needed for maintenance.
3. Include Furniture
Sometimes renters do not have a lot of furniture. This could be because they are young and just starting out, or they are moving from a small apartment to a larger house. You could own extra furniture that you rent to tenants as an additional service. For an easier solution, contract with a furniture rental company. The company provides, sets up, maintains, and removes the rental furniture. You can then collect a premium from the tenant.
4. Offer Cleaning Services
It is in your best interest to ensure your tenant takes care of your rental property. The best way to do that is by keeping it clean. You can ensure your rental stays clean and create an additional revenue stream by offering cleaning services to your tenants. The easiest method is to work with a cleaning service. Work with a specific company, so you can negotiate a volume rate for all of your properties. You could use the same cleaning service for deep cleans post tenant move-out. This reduces your maintenance costs and increases your bottom line.
5. Satellite TV and Internet Contracts
If you own more than one rental, you can negotiate with the TV and internet companies for an exclusive provider contract. You can then include these as an added amenity to your rentals. With the added amenity, you can increase the monthly rent you ask for.
6. Work With a Property Manager
While hiring a property manager is an expense, the benefits far outweigh the additional investment. If you own one or two rentals, then you may not be able to secure a lucrative deal for laundry, furniture, or internet. When you work with a property manager, you can leverage their connections. They may also be able to secure you a contract for these amenities. An experienced property manager will suggest additional revenue stream opportunities that you may not have thought of.
Generate Additional Revenue With a Property Manager
Investing in real estate is a multifaceted approach to growing your wealth. In addition to the long-term appreciation of your property value, you can enjoy a steady monthly income. When you add additional revenue to the rent, you can maximize the income potential of your rental property. Consider trying one or more of these six ideas with your rental property.
Contact our office today and let us help you make the most of your real estate investment.
