Real estate will always be one of the prime ventures with comparatively good investment returns. There’s no doubt about that. Human beings are guaranteed to always seek shelter- and that translates to a consistent investment opportunity for both property sales and rentals.
What is changing, however, is investment models. As the society continues to evolve, so do preferences and investment options.
Consider the rise of Airbnb, for instance. It continues to change the whole concept of short-term rentals, especially for travelers. And this has had both real estate hotel industries reeling.
Of course, many property managers perceive Airbnb as competition because it promotes increased competition. But, let’s take a minute and analyze it critically.
Short-term rentals, particularly in popular tourist destinations, have always been booming for property managers. Despite quick turn-around, it’s a good way to rent out property at rates that are substantially higher than standard long-term leases.
To attract tenants, property management firms have always used websites and social media to showcase their properties. So it was only time till someone found a way to consolidate all this in one platform- and provide a single channel to source for short-term rentals across the globe. Not quite a far-fetched idea after all.
Currently, Airbnb is valued at $31 billion, with more than 150 million users and 640,000 hosts. Let that sink in for a minute. Clearly, property management can mint you extra money if you’re very strategic and clinical about it.
With tools like Property Matrix, managing rentals is now easier, and it provides the requisite flexibility to explore other income-generating options. To help you in this, here are a couple of ideas on how to make extra income as a property manager:
Increase Rent Strategically
Revising the rent upwards might lose you some tenants and increase your vacancy rate. That’s true. But so is the fact that maintaining constant rent could choke your growth, and inflation may even catch up with you over the long haul.
That said, it’s possible to increase rent and maintain a low property turn-over rate at the same time. All you need to do is handle the process systematically and strategically.
If you’ve been a property manager for quite some time, chances are you know tenants can smell a raw deal from miles away. They know when their property managers are being greedy enough to increase rent at rates that are higher than standard market norms. On the other hand, however, many of them are also aware of inflation and the rising costs of property maintenance. So they know that rent might be reviewed at some point during their tenancy period.
And that requires some amount of finesse. Review similar properties around your area, standard inflation rates, property appreciation rates, and relevant legislation on rent increment. Some states, like Oregon, have outlawed increases during the first year of month-to-month tenancy.
Most importantly, since you might be tempted, avoid being overambitious. Because otherwise, you could lose it all just when you thought you were about to make a killing.
Run a Coin-Operated Laundry
Now that you already have tenants, it would be a good time to start looking into at lucrative services you can provide. View them not only as tenants but also as a ready market of consumers. One thing that’s guaranteed, for instance, is that tenants will definitely do their laundry.
Despite operating for 70 years, the laundromat industry is seemingly never getting old. As a matter of fact, it’s considered recession-prove, is set to continue growing from its current $5 billion annual revenue. All simply because everyone likes clean clothes.
So take advantage of this and install sufficient coin-operated laundry machines that will adequately serve your tenants. And don’t worry about a consistent flow of customers- because no one will load up their laundry to drop in a commercial laundromat, when they have good laundry machines in their apartment building.
Get a Real Estate Agent License
Rent is a bill that’s only enjoyed by property owners and their corresponding managers. Tenants hate periodically paying for properties that they’ll never eventually own. That’s why every single one of them is pretty much aspiring to be a homeowner in the future.
The bulk of them won’t be around forever. As a matter of fact, the average age for a home buyer is the U.S. is 33. Well, of course, this means property turn-overs in the long run. But, it could also translate to a stable source of income if you’re calculative and strategic.
Bond with your tenants during their stay within your properties. Combine that with a real estate license, and you’ll have a good chance of making a handsome commission every time they are on the lookout for properties to buy. They will come in broods, especially if you sufficiently comprehend their needs, and consistently provide a fresh list of new listings. And closing a deal should be comparatively swift, because most prospects prefer working with professionals they’ve connected with over a long period of time.
Of course, you might be worried that this could eat into your management business. That, however, should only concern property managers relying on outdated systems. Implementing a transformational automated system like Property Matrix will substantially free up your time, allowing you to undertake other income-generating ventures
We’ve only mentioned a few solid opportunities that are open to property managers across the board. With the current dynamism in the American real estate market, there are plenty of other options for both managers and owners. So feel free to share some of the most exciting ones in the comment section.