Two Ways to Improve Your Property and Increase Revenue
August 23, 2021
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Two Tips To Help You Improve Your Property And Increase Revenue
Offering cleaning services and storage rental can keep your properties looking great while adding to your monthly revenue.
And it may even increase tenant satisfaction.
Tenants often have more “stuff” than storage space within their apartment. And who has time to clean?
Giving your tenants the option to pay a small extra fee for storage rental and cleaning services not only makes their life easier, but also decreases the wear and tear on your properties. It’s a lot faster to flip an apartment that the previous tenant kept clean, right?
Let’s take a closer look at these two services to see if they’re right for you.
Renting Storage Space
Any landlord that has extra space could maximize profit by renting it out. This requires little additional effort — you already own the space, after all — and has the potential to yield significant gains. Landlords can rent out sheds, garages, unfinished basements, and uncovered parking spots. It’s all about utilizing the resources readily available to you.
It’s important to keep in mind that renting out your excess space means additional liability. Issuing clear guidelines for usage of the space and keeping up to date on maintenance are both crucial. There is also a possibility that renting to non-tenants could lead to conflict between the storage space renters and pre-existing tenants. Again, setting guidelines would minimize the chance of conflict.
How to get started:
- Assess your unused space. Figure out how much storage space you have available and how it would be best used.
- Know the laws. Non-dwelling units are regulated by state laws concerning zoning, building, renting, and more. Staying up to code is your first priority.
- Rent to non-tenants. The laws and regulations surrounding non-dwelling units differ greatly from landlord-tenant laws. Renting non-dwelling spaces to tenants can lead to many complications, which is why it’s best to avoid mixing these relationships.
- Collect rent. You can collect rent monthly via cash or check, or you can choose to collect online using a digital payment service.
How renting storage space will increase your revenue:
What you’ll pay: $0-200 depending on how much work is required to begin renting the space.
What you can charge: $35-200 per unit per month; see the breakdown below.
- Garage: $100-200
- Uncovered Parking Spot: $50-100
- Small Shed: $35-50
- Large Shed: $150-200
Revenue Summary: Renters will pay $35-200 per unit per month, which will go directly into your pocket.
Offer Cleaning Services
This additional revenue stream would work for most landlords, especially those managing large units and university housing. Few college kids clean regularly — if at all. Offering them cleaning services packaged into their lease could be a selling point for students and their parents.
Keep in mind — regular cleaning will help better maintain your properties. Ensuring that your units are in good shape will have a demonstrably positive effect on your long-term cap-ex charges. You might even be able to coach the cleaning service to focus their efforts in a way that maximizes this benefit. For example, asking them to regularly clean the coils on refrigerators can significantly extend that appliance’s life.
Independent landlords managing smaller properties might experience more difficulty selling the services, but there is certainly a chance that tenants would be interested. Try talking to your tenants to see if cleaning services appeal to them. Even if only one or two units pay for the services, it is an opportunity for meaningful profit.
How to get started:
- Find a reputable cleaning service provider. Choosing the wrong provider could put the security of your tenants’ belongings at risk.
- Contract out the work. The particulars of the services will vary based on tenants’ needs. Some may require only monthly cleanings, whereas others might prefer weekly or bi-weekly services.
- Determine a price. Because more regular cleanings require less work, your service provider will likely charge less for weekly cleaning services than they will for monthly services. In this case, you might consider adjusting your additional fee based on how frequently the cleanings occur.
- Collect payments. You can include the tenant’s package in their lease agreement if you know the services they require upon signing, or you can write up an addendum after they’ve signed.
How offering cleaning services will increase your revenue:
What you will pay: $50-100 per cleaning.
What you can charge: $10-30 on top of the cost of each cleaning.
Revenue Summary: Tenants will pay $60-130 per cleaning; you will profit $10-30 per unit per month.
Offering storage rental and cleaning services helps keep your properties looking nice and may even decrease the amount of maintenance you have to do between tenants.
Your tenants get a clean, tidy unit to come home to, increasing their satisfaction—and helping you retain them when it’s time to renew their lease. What’s more, it can even help you drive additional revenue from your rental property: a true win-win!