Rental Properties: Ten Ways to Increase Income
By Steve Gillman - 2006-2015
Do you want better cash flow from your rentals? Charging more
comes to mind, but you can't just raise the rents arbitrarily,
because if tenants leave, income goes down, not up. Fortunately
there are other ways to increase your income from your properties.
Here are ten more suggestions for increasing the income from
your rental properties.
1. Install Coin-Operated Washing Machines
If you don't have the money to do this yourself, you can find
a company that will do it for you, and share the income with
you.
2. Rent Parking Spaces
I got tired of a renter's extra car, so I just started charging
a weekly fee. Just a little extra income and I suddenly didn't
mind so much.
3. Raise Rents
Okay, we dismissed ARBITRARY rent hikes as a cash-flow solution,
but check on rates for similar units. You may be renting at below-market
rates.
4. Rent Storage Sheds
If your apartments are small, your renters might need a place
to store their things. Why let them spend their money elsewhere?
Put a few rental storage sheds on the property.
5. Collect Late Fees
It's perfectly fair to have a high fee for late payment of
rent, and guess what? Those who are chronically late usually
won't even complain - they just don't look at these things the
way others do.
6. Make Improvements to Increase Rent
If it's worth $25 more rent to a tenant, install that dishwasher.
Even on a credit card you'll be paying less than that per month
for it, especially if you shop around for the cheapest install
kits.
7. Install Vending Machines
With large enough rental properties, others will do this for
you for free, and give you a share of the income.
8. Rent by the Room
A four-bedroom house could make more money if you include
utilities and rent by the bedroom. This has made many fortunes
for investors in college towns. It will mean a lot of management,
however.
9. Offer Rent-to-Own Deals
Usually you'll charge a non-refundable deposit, and higher
than market rents in these deals. When renters change their minds,
as they'll often do, you got the deposit and better cash flow
during their stay. This is great when poor cash flow makes you
want to sell, because you either sell or get the better cash
flow as you repeat the process.
10. Reduce Your Expenses
Every dollar of expense you cut goes to the bottom line. List
all expenses of your rental properties, and look at them one
by one. How can you reduce them?
Another related article: Buying
Rental Properties - What To Look For : Some good tips for
finding the best deals.
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