How to Increase Your Income Without Raising Rent
Investing in a rental property can deliver plenty of benefits. You earn a steady income and can grow your property’s portfolio over time, and attracting long-term tenants is the best way to do it.
After some time, you might feel that you need to increase your rent rate. This requires a thorough analysis. If you decide to hike up your rent, your tenants may not renew their leases. To counter this possibility, landlords can apply strategic ideas to increasing their income without resorting to an increase in rent.
Here are some income-generating tips to consider:
Collect Late Fees
Leasing agreements generally cover rent conditions such as penalizing the renter by collecting a late fee payment. It will also increase the motivation of renters to pay the rent on the due date. Keep track of the rental payments and enforce the late fee collection. You’ll have the extra income and be less likely to worry about missed payments.
You can engage the services of a property management company, like McKenna & Vane Property Management, that can monitor rent payments efficiently. They’re also able to enforce the late charges. If a tenant has an issue and is withholding the rent payment, they can find out the reason and deal with the matter directly. This saves you time and reduces your stress.
Add Pet Fees
If you have a pet-friendly rental space, you can generate more income by collecting a pet deposit, pet rent, or a pet fee. While there are several benefits to accepting pet owners as tenants, you also expose yourself to risks. As such, pet fee collection is understandable on your side.
If proper pet screening has been done and the pet is well-disciplined, you’re able to save up the income generated by pet fee charges. You can consider hiring a property management company that can conduct various property management services for you, including pet fee collection and pet screening.
Network with Local Vendors
Property maintenance is vital to continue attracting renters to your rental home. You’ll also be handling different property issues and require repairs from time to time. This can extend to your property’s plumbing, electrical system, or even foundation. It’s important to have a reliable network of vendors you can call on. This will save you money down the line as issues will be addressed right away.
Seek to cultivate good relationships with local service companies. They can help you maintain your rental home and even provide sound advice. You can also contact a property management company that would have the best resources when it comes to having a trusted network of vendors and contractors, like McKenna & Vane Property Management!
A property management company like us is able to pass on savings to you from the discounts we receive. Due to the large scale of repairs (thanks to having many properties under their care), property management companies are able to help you save on repair costs.
If you’re a new landlord, you can quickly access and take advantage of these resources since cultivating a good relationship with vendors can take time.
Offer Storage Spaces for a Fee
Storage spaces are always in high demand. That’s why storage facility businesses are popular. You can earn an additional slice of income by renting out your extra spaces for storage. Charge extra when converting an attic, basement, or shed into a storage room. Renters can use it to store bulk items that they only use for particular seasons such as grills, golf clubs, or garden equipment.
In denser cities, extra storage spaces come in handy, especially for large families with plenty of possessions. Multi-family units tend to have fewer storage areas and renters pay extra to keep their other belongings secure. If you have several vacant storage spaces, you can also extend the service to non-renters. This way, you can obtain more income without changing the rental rate.
Charge Extra for Parking Spaces
Buying a condo unit with a parking space is more expensive since you have to pay extra for the parking space. This is also applicable for renters who need a parking spot for their personal vehicles. They generally pay a fee to have a secure parking space. As a landlord, this can be an income-generating move instead of raising the rental price of your property.
Again, in dense areas, parking spaces are prized as an amenity. You can even extend the parking business to non-renters as well. Your neighbor might have tenants who need a place to park their cars. This can be a lucrative way to earn more while maintaining your rental rate.
Rent Out a Washer and Dryer
Some tenants don’t buy big ticket items knowing they’re renting. You can market a washer and dryer for an additional fee. This is convenient for them since they don’t have to drop by laundromats.
If you own a multi-family property, you can invest in a pay-as-you-go laundry machine for the tenants to use whenever they need to do their laundry.
Bottom Line
These tips will help you gain extra money without touching the rental price, and some of these ideas work especially well with the support of a property management company. If you’re seeking a trusted firm that can help you enforce policies, collect the rent, and maintain your property, try McKenna & Vane Property Management!
We have the professional skills, ample resources, and experience to help you run your rental investment. Contact us today so we can maximize your rental home earnings!
