Adding an additional revenue stream from your existing units

[Brandon Ingegneri]

In the last year or so, I found an opportunity that allowed me to maximize the returns on my investments. While my rental portfolio is operating smoothly and continually growing along with my property management business, I slowed my growth down, and really took the time to analyze how to squeeze every additional dollar out of my investments, and add additional horizontal streams of revenue.  I performed many energy efficiency renovations, ensured all units were sub-metered, etc which improved returns, provided a write offs, and added to my basis which can be depreciated.

Recently National Grid who is the supplier for gas and electric utilities in the Rhode Island, Massachusetts, New York service areas released information that they would be introducing a substantial rate hike.  Long story short, I began researching the deregulation of energy, and found that I could become a broker for lack of a better term for energy and supplemental services.  What I have basically done is lock all of my tenants into lower electricity rates. National Grid remains the provider and servicer, but the tenants lock in a rate directly from the distributor of the electricity that National Grid also purchases and marks up.  We essentially cut out the middle man without sacrificing the service.  This then lead to locking them into lower rates on their wireless providers, internet packages, and in some cases, credit card processing.  

The beauty of this situation is that all of my tenants have been paying these monthly utility bills regardless.  I have provided them with better customer service by providing them a way to decrease their monthly expenses, and I have created an additional passive income stream for the business that pays me back a percentage monthly.  So not only do I collect rents from my properties, but I now collect monthly payments for utility, internet, and wireless usage on all of my units.    

I would be happy to assist with any landlords that may be looking to do something similar.  Its a situation where everyone is able to benefit.