There are various ways of earning passive income. However, rental ownership ranks among the best options in the market. After finalizing the construction or purchase, you must begin the process of attracting tenants, leasing out the space, and enjoying rental income. However, after an extended period of receiving the same fixed amount, you may consider increasing the rent.
Although increased rent converts to higher income, it may also translate to higher rates of tenant turnover. This would be counter-productive to your investment’s growth. Hence, many real estate investors inquire as to how they can increase the income earned from their investment without raising the rent.
This post explores several alternatives for increasing rental income without applying rental escalations.
Enforce Penalties for Late Rent Payment
Fees or penalties for late rent payments are common in leasing agreements. The enforceability of these fees by landlords however can be weak. Hence, as you explore ways of increasing the income from your rental property, consider enforcement of penalties for late rent payments. It provides a great way to increase your income by enforcing what is legally yours.
To enable easy enforcement of collecting fees for late rent payments, one must keep a reliable record of the payment dates. The process may sound complicated for a self-managing landlord. This is where property management companies come in as they are a great solution to enforcing these fees.
They can help you keep track of your tenant’s payment records, collect the fees they owe you, and deal with your tenants directly, leaving you with more free time and money in your pocket.
Impose Pet Fees on Your Tenants
A landlord decides whether to allow or prohibit pets in a building. It’s worth noting that even if you have a “no pet” policy, this does not apply to service animals as stated in the Fair Housing Laws.
If you want to allow pets while mitigating the risks associated with it, you can impose a pet fee. Charging a pet deposit is a great way to ensure the high costs of repairs and cleanings do not fall on you but rather on the pet’s owner.
Pet fees (pet deposits) are similar to security deposits. It’s paid one-time and is paid separately from security deposits. Since they are a less common occurrence, you must research first to determine the proper and fair amount of fee to charge. When considering the amount payable, you must consider that you aim to save future repair costs.
The concept of charging a pet deposit may be unfamiliar to many self-managing landlords. Therefore, it’s best to research your local and state laws before imposing those kinds of feeds. You may also seek professional management help if you’re overwhelmed.
Build Relationships with Local Businesses
Property ownership comes with various risks and tasks. Rental property for instance is prone to unavoidable tasks such as repairs to the building. You cannot avoid electrical, plumbing, landscaping, or daily maintenance. Although repairs are costly, they must be done.
While you cannot avoid the repairs entirely, you can come up with measures for cutting down the costs incurred. One of the proven ways of slashing the repairs costs is by developing and maintaining, solid business relationships with local service providers. The relationships can help save costs in the long term through personal discounts and being a returning client. Besides the savings, there is also the assurance of quality workmanship.
This can be especially hard for property owners who do not live in the same neighborhood as their rental property. This is where a professional property management company like Haas Properties comes in.
As the premier service provider in Fulton and Cherokee County, we have forged strong relationships with reliable local businesses that can come to the rescue quickly and resolve maintenance issues on your building at a discounted price.
Offer More Storage Spaces
Storage space is always a limited resource among renters. Hence, anyone would appreciate having additional space for storage. On the other hand, a landlord can use the limited supply for profitable gains. If your building has basements, sheds, or attics, you can rent them out to willing tenants, and they can pay you for access.
Tenants can use the space to store large furniture, seasonal equipment, and landscaping tools that aren’t in constant use. This will allow them to have safe and easy access to these items without having to store them directly in the rental space.
Offering more storage could be a win-win for you as the landlord and for your tenants. You’ll earn extra income while they gain more safe storage spaces.
Rent Out Parking Spaces
The issue of finding parking space is everywhere. While you may anticipate the number of vehicles to be similar to the number of units, this isn’t the most accurate assumption. If you can source additional parking spaces for your tenants and charge them this could be a great way to earn more income without adjusting the rent.
The tips above are just some of the many ways you can make an extra income from your property. Learn what your tenants want and need. If they need more storage this could be an opportunity to rent out the shed. If they want an additional parking space, this could be an additional charge and source of income.
Feeling overwhelmed? Work with the reliable property management firm, Haas Properties for these tips to become enforceable. We will take over the time-consuming research of suitable alternative sources of income and ensure that it does not exceed the legal boundaries.
For additional information, give us a call at (770)-928-4910 or send us an email, and let us assist you to achieve your financial goals in Northwest Georgia. We would be delighted to serve as your property management firm and assist you with your property requirements.