Rent is definitely the big ticket earner in terms of multi-family property profits, but there are many other ways to get money through the door each month. In most cases, finding new revenue sources at a property just requires a little out of the box thinking. The following ideas illustrate that money is there and waiting with just a few small changes.
Parking is becoming increasingly difficult to find in populated urban areas. If your property features on-site parking, renting out spaces at a competitive rate to tenants can generate money where there wasn’t any before. Additionally, if you notice that there are extra spaces in your lot or that the lot is mostly empty during working hours, you can rent out the spaces to local companies who need employee parking. Any way you cut it, parking lots have great potential as an additional source of revenue.
Does your property have a pool, a fitness center, or a clubhouse? If you notice that these amenities aren’t being used by tenants, you can still utilize these features to earn some extra cash. Freelance yoga instructors and personal trainers are always looking for new clients and spaces to conduct their sessions. Renting out these facilities benefits almost everyone involved. You collect another rent, the instructors earn money from tenants, and tenants have a great amenity. If you find this a successful venture, you can also raise the rent to reflect the new offerings.
Many property owners do not allow tenants to have pets. While the skepticism is understandable, allowing tenants to have a cat or a dog can make a big difference in your revenue. Not only will you be able to collect a pet deposit, but you can also charge a fee each month per animal. You may be thinking, “But what about the damage?” Some studies have been conducted showing the damage caused by pets is comparable to damage caused by the tenants themselves. In that case, both the security deposit and the pet deposit are more than enough for repairs.
Often times, the key to finding new revenue sources at multi-family properties relies in the ability to look around and see what could be improved upon. Think innovatively and creatively and, more often than not, you’ll be able to find money in many new places.