6 Unconventional Strategies to Make More Money with Your Rental

Is it greedy to say that, in real estate investing, it’s all about the bottom line? I don’t think so. Because it is. The amount of money in your pocket at the end of the day is Priority #1 for every investor I know, and that’s not necessarily a bad thing. Obviously, if you’re running your rentals like a slum lord, you probably need to reevaluate your situation and maybe even reconnect with your basic human decency. But for most of the investors out there, it comes down to providing high quality, affordable housing to other people, while still turning a profit and providing for their own livelihood.

While the rent payment alone should be generating most of your profits, there are a few other steps you can take to boost your income. Yes, some may be a bit unconventional, but hey, they work!

1. Implement other fees. If you’re not already charging various fees with your rental, you’ll missing out on some easy money. Before you even have a signed lease, you should be assessing at least one charge: an application fee. This will weed out lower quality tenants and help cover the background check and other costs you may incur when considering an applicant. Other fees you may want to consider include late payment, lease termination, extra occupant, pet, etc. Writing these fees into your lease agreement is one of the easiest steps you can take to see a bump in your revenue.
2. For multi-family units, add coin-operated laundry facilities or vending machines. Why let the laundromat down the street get all the profits? If you’ve got the space, install some coin-operated washers and dryers. Your tenants will enjoy the convenience, and it’s a good selling point for your units as well. Throw in a couple of vending machines (kids love to buy stuff from them), and you can make even more.
3. Get your real estate license. As an investor/landlord, it never hurts to obtain your real estate license, especially if you plan to expand your rental portfolio. Yes, you’ll incur some expense to get and maintain the license, but you can save significantly on new properties when you act as your own agent. Plus, if/when your tenants are ready to move out and buy their own place, you can offer your services to them!
4. Perform your own maintenance. This one isn’t for everyone, but if you can take on some of the maintenance tasks yourself, you can save money. While a good property management company can actually save you money, if you’re extremely handy and have the time to commit, you can save that monthly fee and take care of your own maintenance jobs.
5. Sell partial months. When you’re transitioning between tenants, why wait until the first of the month to let them move in? If you’ve found a great renter but their lease expires a month after yours opens up, offer to prorate the unit and let them move in mid-month. This way, you’re only out half a month’s rent instead a full one.
6. Make your own keys. Don’t laugh. You don’t have to be a locksmith to make your own keys. You can get a quality key cutting machine for less than $400, and blanks will run you less than a dollar. When tenants leave, you can get new locks and make new duplicate keys yourself. You can also charge for lost keys. Over the course of your ownership, you’ll more than pay for the machine.

Creating new revenue streams is an excellent way to maximize profits on your rental property. While the gold standards of 1) decreasing vacancy, 2) minimizing turnover, and 3) taking advantage of tax breaks should certainly be capitalized on, there’s no reason you can’t take it a step further.