Rental Property - Ideas to increase cash flow and value

[Joe J.]

Real estate investing is often about maximizing positive cash flow to produce the best possible return on investment.  We can increase value by increasing cash flow.  Here are a few ideas that I have that I want to share with you: 

1. Build a garage and rent the garage to your tenant or another tenant. The garage will easily pay for itself over time

 2. A covered carport may also add some value to your property and a tenant may be willing to pay extra to have a covered car port that is much less than a garage.

3. If you have a multi-unit building consider coin operated laundry facilities and small vending machines

4. Work with a local lawn service or snow removal company (for those areas of the country that get snow) to provide services to your tenants. Receive a referal fee for each client you get for these companies. Usually you have the tenant do their lawn and snow when they live in a single family home, so you can offer a referral where everyone is happy.

5. Basements or attics can be made into rec rooms, over the long term, the ROI will pay for itself. (Be sure to be compliant with your local codes in your town or city )

6. Fewer people that rent are always on the go and may not desire a dining room and eat-in kitchen so if your rental property has both consider converting that dining room into another bedroom, etc. Your rent should increase accordingly. Look into your paper and see the different rates for a 3 bedroom unit compared to a 2 bedroom unit! (Be sure to be compliant with your local codes in your town or city )

7. Build or convert unused space into storage areas for tenants or others to rent. Often, people are in apartments due to downsizing and may have more stuff than their apartment will hold and will pay to store it.  Look at all of the storage facilities all over the country

8. You may be able to increase cash flow by charging a Non refundable pet or smokers deposit.  Often more work is necessary when a tenant moves if they were a smoker or had a pet.  

9. Some tenants may be willing to pay a little extra rent per month for a fenced in yard or a screened in patio.  Always consider the cost vs. the payback period for the improvement.

10. Tenants often want appliances.  You may already furnish a stove and refrigerator but might be able to charge more monthly rent for providing a laundry washer or dryer.  

I hope the list helps to explore your imagination on what you maybe able to offer to increase your rental income. Please share additional thoughts and insight. Good luck on all your real estate deals. Go make it a great day!  Believe and Achieve!  :) - Joe