Are you a real estate investor looking for a way to get as much money out of your property as you can? If so, continue reading to find out how you can maximize your dollars for profit.
1. Charge Tenants For Utilities.
Have you ever heard of sub-meter utilities? Well, sub-metering is a system that allows the landlord to charge the tenant for the individual measured usage of their utilities. Putting this in place will make tenants aware of the amount of usage each month and deter them from over using. A lot of times if a landlord offers the utilities included in the rent, you will for sure at some point get a tenant that will over use the utilities because they don’t have to pay for them. Examples of over usage are running the heat with the windows wide open or allowing a toilet to run instead of having it fixed because they don’t have to pay the water bill. By making sure you have sub-meter utilities you will never have to worry about paying an astronomical amount for a utility bill because that responsibility will fall to the tenant.
2. Add Appliances in All of Your Apartment Buildings.
By offering appliances in the apartment it gives the landlord the right to raise the rent by $50-$75 per month per unit. If you have a sizable apartment building that means that much more per month that will be going into the bank each month. This is a convenience, an amenity for the tenant so they don’t have to worry about buying their own appliances. Basically, you can consider the extra money per month a convenience fee.
3. Put In New LED Lights.
If you have one apartment building or one hundred, putting in new LED lights is a must. This type of lighting uses so little energy which only saves you money on utility bills. The LED bulbs they have now last up to 25 years so you don’t have to worry about them burning out and having to pay someone to come out and fix them. By having these newer upgrades, it only adds value to your apartment. 4. Having Premium Parking or Garages. If you have garages or carports to offer tenants along with the rental of an apartment, most every person you encounter will pay an extra fee per month just to have that convenience. If you don’t have garages on your property but would like to cash in on this idea, carports are a less expensive substitute and they don’t take long to construct. Living in an apartment building means everyone is fighting for the spot closest to the door! Everyone wants that spot. An easy way to make some extra cash is to have some signs made for the spots closest to the door that say “Reserved Parking For Rent” and the tenants will pay just to reserve that spot. Doing these little changes to your property will add more money to your pocket each month, plus the value of your property will increase.
5. Offer Trash Removal Service.
Do you have a maintenance man available on the property? If so, another way to make some extra cash each month, would be to offer customized special services to your tenants. Maybe you have an elderly couple in an apartment and you noticed they have trouble taking their trash to the dumpster, you could offer them trash removal twice a week for an extra fee per month and just have the maintenance man pick it up and
discard it for them. Once one tenant sees this and by word of mouth from neighbors talking more tenants will sign up for this extra amenity, that means a cash influx for you each month and property value increases.
6. Make Storage Units For Tenants.
Apartments do not have a ton of room or closet space. So where is a tenant supposed so store all of their stuff? By offering a storage unit to the tenants, you could easily put some extra money in your pocket each month. When you live in an apartment you have to try and keep your belongings to a minimum otherwise your apartment will feel really cramped. If tenants know you offer this service they would be more than
happy to pay a little extra each month to be able to utilize the extra space. Each one of these tips will help you to increase your cash flow each month and bring added value to your property. It’s a win win situation for you and the tenants who reside in your building.
Do you invest into multi-family dwellings? Want to learn how to make even more money on these property investments? If so, we suggest you check out our multi-family dwelling investment guide.