As the market slows and more of us find ourselves in the unlikely role of landlord, we need to develop a new reality Here are some good ways to maximize income beyond rent. Take a good look at your space. In other words, what are the unused assets available and how can them be used to increase income. When you isolate areas available for income use, consider whether you want to be the owner/manager of this operation. There are many companies that exist to develop you space in a revenue sharing basis.
Revenue Sharing Arrangements
Here the company will provide the service or facility and you would provide the space. Generally, they will maintain the equipment and all maintenance of such and you would provide the space and be responsible for all upgrades such as plumbing or lighting.
In this model the company brings in everything necessary and operates it, paying you a flat fee. This method leaves you with a steady income and little operational responsibility, of course you can buy the equipment and maintain it. This is the high maintenance high income approach. Always, safety and insurance issues are the owner’s responsibility. Do periodic inspections to be sure that the equipment and maintenance are up to snuff. Basements
Laundry Room: Can you put some washer dryers in there? There are contains that will install their own machines and maintain then for you. All you need to do is plumb and collect the change. In fact, newer machines offer a plastic card with a debit account funded by all your tenants. No need to haul quarters with the newest machines. The profit is split between you and the company. I’m told its an average of $75.00 per apartment building.
Storage: If you have a large unused basement you might consider an investment in cleaning it out and installing metal or wire cages that can be used as storage containers and rent them to tenants.
Do you have extra space for a car or a garage you are not using? Renting a parking space is much like renting a unit. You should have a parking lease or addendum. There are some special considerations when allowing someone to rent a garage.
A. Be sure the car is owned by the renter. Have in your file a copy of the driver’s license, a copy of current car insurance and the car license.
B. Certainly have a parking lease. Among other things there should be an understanding about sub leasing the space, that all flammables and toxics never be stored in the space and that all clean-up be the responsibility of the renter.
C. Take photo’s of the space before and after to validate any claims.
D. Always have a termination date to this or any lease. It will allow you to raise rent or ask the renter to move on.
If the property is large enough you should be able to find a vendor to install and maintain on a revenue share basis.
1. Always have mortgage and insurance agents compete competitively. The internet has created a level playing field with quote engines where you can fill out one form and have four to six agents offer competitive bids in minutes. You might go to yourpropertypath. com and check out the insurance and mortgage areas. They are always free.
I know this sounds odd but its quite possible to arrange services for your tenants. This idea works well with busy upscale tenants. Have your residence manager receive finished cry cleaning for your tenants for a small fee. offering a pick-up and delivery service for a slight fee. This can be a great amenity for busy up and coming workforce.
Add a rental unit over the garage. As Boomer’s retire there will be a need for smaller inexpensive rentals matching retirement incomes.
Howard Bell for yourpropertypath. com