Most of the revenue for any property management business undoubtedly comes from the rent paid by tenants. A little more might come from additional fees such as late payment, pet, or extra occupant charges but these are generally limited and unpopular with tenants. Are there any other sources of property management revenue?
There are countless ways to boost your income if you’re creative in how you leverage what you have. Take a look at your properties and consider additional ways that you could be using them and extra services you could be offering. Here are a few ideas to get you started.
Sell Advertising Space
Earn extra income by selling ad space to local businesses. Many of them would be willing to pay for access to your tenants and their visitors. Place ads in elevators, common areas, and frequently used spaces and charge a monthly fee. At the end of the month change the ads in each location to keep things fresh.
Outdoor advertisements are good too and they don’t rely solely on your tenants. Walls and sides of buildings with good visibility are potential advertising space that could be earning you extra income. And you can start by putting up “put your ad here” signs advertising the ad space itself.
Include An In-House Laundromat
Multi family buildings can benefit from a coin operated laundry on the premises. Even though higher paying tenants tend to expect free laundry within the unit, apartment size machines are smaller. You can provide larger coin operated machines on the premises and save tenants the hassle of having to bring their large laundry items to an external laundromat while increasing your property management revenue.
Rent Out Your Tools
Your property management business probably has some equipment to keep your properties clean and operational. Put your tools to good use even when you don’t need them. Steam cleaner, pressure washer, carpet cleaner, and even a stocked tool box are pieces of equipment you could rent to tenants for a fee.
Not only can you supplement your income, renting out your equipment ensures your tenants have the tools they need to keep your property in good shape. Additional property management revenue and less work for you upon a tenant move out is a win-win situation.
Install Vending Machines
Multi family dwellings and corporate properties are great candidates for vending machines which can be a good source of additional income. Residential buildings are often full of kids who probably enjoy putting coins into machines full of colorful candy. Office buildings are better suited for easy lunch options and snacks offering employees an alternative to going out to eat.
You can purchase your own vending machines and place them in your properties. Alternately you can partner with a company that will place, stock, and maintain the machines. You’ll have to share the profit but it’s no initial investment and none of the hassle.
Get Into The Electricity Business
Solar panels continue to get less expensive and more efficient. Installing solar panels allows you to increase your property management revenue by producing electricity and charging tenants for usage. In some cases you might even be able to sell excess power back to the grid.
Although solar panels can be installed on any property, in most cases single family homes are better candidates. They have more roof space per person and individual meters that make it easy to gauge usage. Properties with empty fields and unusable spaces can be good candidates for solar panels too although you might have to charge tenants a flat fee for electricity rather than base it on actual usage.
Charge For Parking
If you have room to spare, consider renting parking space. Include one spot with the unit and charge a monthly fee for each additional spot. You can even offer short term rentals on extra parking spots for out of town visitors.
Parking doesn’t have to be limited to your tenants. Increase your property management revenue by renting surplus parking spots to the public. These could be monthly rentals for people who live nearby. If your property is in a busy area, consider putting up machines and transforming dead space into a paid lot for the general public as well as anyone visiting your tenants.
Place Digital Ads
Monetize your website and digital communications. Place Google ads on high traffic areas of your website. Include useful affiliate links in the emails you send out to tenants. Sell sponsored posts on your blog to relevant local businesses.
Be selective with the types of ads you choose and don’t overdo it. You want your website and communications to be professional. That being said, partnering with the right businesses can be a service to those who visit your website and read your communications.
Offer Extra Services
Selling additional property related services is a great idea because not only does it boost your property management revenue, it ensures your property is being looked after. Consider selling HVAC filter replacement, lawn mowing, and pool maintenance services. Additional services such as electronics setup, housekeeping, and dog walking can be attractive to tenants and good for your finances.
You don’t have to perform these services yourself. All you need to do is partner with local businesses and agree on a profit sharing program. You can charge a one time finders fee for each tenant you refer or have a more advanced plan where you get a percentage of the revenue.
Rent Space to Vendors
Rent space in the lobby of your apartment building to a coffee vendor and sell fresh brewed coffee to your tenants during the morning rush. The common area in an office building is a great space to rent to a small food vendor that can offer a good lunch menu. Common outdoor areas are perfect for hot dog carts and ice cream vendors.
Renting space in high traffic areas to well thought out vendors is a great way to boost your income while providing a service that tenants appreciate. Take a good look at common spaces with a fresh perspective and consider how that area can be utilized. You can generate quite a bit of property management revenue this way while improving the lives of your tenants.
The potential for additional property management revenue is only limited by your creativity. Think outside of the box and start utilizing the untapped potential of your properties. You might be surprised how much you can boost your income with a little ingenuity.