Do you know the second rule of real estate? Right after location, location, location — the more creative the operator, the more profitable the property. There are countless ways to use a little innovation to boost the rental income your multifamily property produces.
Consider some of these ideas for your units to pump up the profits.
Cleaning Service
Just like you, your tenants likely have busy lives, and cleaning is one more task on their to-do list. If you already have a cleaning team for your property, negotiate a deal or contract to offer a cleaning service to your tenants. This strengthens your relationship with your cleaning provider, puts extra money in your pocket through the agreement you establish, and gives you peace of mind that your units are routinely cleaned.
Short-Term Rentals
Do you have a multifamily property in a touristy area or a dense business location? Consider turning some of your units into short-term rentals. Furnish a vacant unit into a cozy space and charge vacationers or business travelers a nightly rate competitive with other short-term rentals or hotels — during peak season, this can bring in double or more compared to a typical tenant’s monthly rent. Be sure to research your city or municipality’s short-term rental rules before you get started, since regulations vary widely.
Parking Spaces
You never truly understand the value of a parking space until you’re circling a major city or event venue looking for one. If your property has ample parking, you may be sitting on a gold mine without realizing it. Properties near event complexes or areas with minimal public parking can rent out extra spaces on a day-to-day basis. If your tenants own toys like ATVs, RVs, or motorcycles, consider working out a deal for them to park on your property for an additional monthly fee — easy money that maximizes every square foot you own.
Storage
In an unpredictable economy, cinderblocks and garage doors can be a safer investment than many retirement funds. Self-storage is one of the lowest-risk, lowest-maintenance ways a landowner can add passive income to a property. If you have extra land or unused space, consider adding self-storage — just be sure to check zoning requirements first. Bike storage is another easy amenity to add in city locations without using much space.
Coin Laundry, Vending Machines, and ATMs
Coin laundry might seem old-fashioned, but if your tenants don’t have in-unit machines, it can still be a solid source of passive income. Dedicating some vacant space on your property to a vending machine or an ATM adds convenience for tenants and a little more cash flow for you.
Billboards
Do you own a property in a high-traffic location? Use it as an ongoing advertisement for your apartments, or lease the space to a local billboard company for a low-hassle income boost.
Money-making opportunities are all around us, and with a little upfront effort, they can become fantastic ways to optimize your property’s potential and add cash flow. Take a look around — your next income stream could be right in front of you.
