How to Boost Rental Revenue Without Increasing Rent

Landlords are always looking for ways to increase their return on investment (ROI).

You invest a lot of your time, money, and energy into your rental business each year. It’s only natural to want to be rewarded for your efforts with satisfying profits.

However, when looking to increase ROI, it’s not always feasible to increase rent prices. Maybe you need to keep prices low to beat your local competition. Maybe the average income of your neighborhood couldn’t sustain a rent increase, or it could be that your tenants have already signed lease agreements for this year.

Fortunately, there are many secondary ways to increase your take-home revenue. Here are a few ideas for boosting rental income without increasing rent on your tenants.

1. Offer Cleaning Services

Cleaning services are a great way to collect extra revenue from your tenants. Busy students, young professionals, or working parents with kids might be willing to pay an extra fee for regular cleaning services.

If you can find an affordable, reliable vendor to contract out the work, cleaning services might be a great option for you. They also keep your units in top condition, which means you’ll save on cleaning costs during turnover. 

2. Rent Storage Space

Do you have any nonresidential space lying vacant? One way to boost your revenue is by renting out this property as storage space.

For example, extra garage space or vacant rooms could be used as storage space for local renters trying to coordinate moving their belongings to/from the area.

Aim to rent your storage space to people other than your current tenants to avoid any conflicts. You can still manage their rent payments on your property management software account.

3. Add Coin-Operated Laundry

If you don’t currently offer laundry services on the premises, adding coin-operated laundry facilities could earn some extra income. While the proceeds won’t be drastic, a little extra change can go a long way toward saving up for big projects. 

Your tenants will also appreciate the convenience of on-site washers and dryers over driving to a laundromat.

4. Allow Pets and Charge Accordingly

Allowing pets in your rentals can attract a significant percentage of renters who own pets in your area. It can also help you gather some extra funds in pet deposits, fees, or pet rent.

If you don’t currently allow pets and decide to allow them for a charge, be sure to research your state’s rules for service and emotional support animals (ESAs). Typically, landlords cannot charge extra fees for animals that are certified as service or support animals.  

5. Install Smart Home Technology

You’ve probably seen ads for smart home technology. If you haven’t considered installing smart technology in your rentals, consider investing in these new devices. 

You might want to poll your tenants first to see who would be interested in paying extra for the upgrade. If you install smart tech, you can also take advantage of its many safety, security, and sustainability benefits. For example, smart locks and video doorbells ward off porch pirates, while smart thermostats conserve energy use.

6. Enforce Penalty Fees

If you want to increase rental revenue, be sure you’re enforcing all the penalty fees you describe in your lease agreements. These include fees for late rent, illegal occupants, damage, uncleanliness, or others.

According to the lease, you’re already entitled to these amounts if tenants break the terms of the agreement. Collecting these fees helps you establish a standard of accountability with your tenants while accruing a little extra revenue.

Start by setting up late fee infrastructure on your property management software account. You can incur additional fees by adding them individually to a tenant’s account as necessary.

7. Self-Manage Accounting and Maintenance

Finally, if you find you’re spending too much on vendors and contractors throughout the year, consider cutting down on hiring help and managing aspects of your rental business yourself.

For instance, maybe you use QuickBooks or tax preparation software in place of hiring an accountant. You could also learn a few basic repairs and save on maintenance contract costs.

Remember, property management software provides all the tools you need to manage your rental business independently.

Maximizing Your Rental Income

There’s nothing wrong with setting goals for increasing your rental profits. However, it’s often better to balance any extra charges you incur on your tenants with a benefit to them instead of simply increasing rent. By thinking outside the box, reducing costs, and investing in some extra services or features, you can save money and increase your take-home rental income.

Also Read: How To Have More Respect For Yourself.