Low Hanging Fruit and Boosting Your Other Income
Wondering how to boost your revenue? Have you dug into your other income? Refining your business plan and streamlining your operations will offer various opportunities to boost other income, in addition to rental income. Here are some strategies that can help property managers increase their other income:
Utility Billing: Implementing a utility billing program allows property managers to bill residents for their individual utility usage, such as water, gas, electricity, and trash. By leveraging submetering or ratio utility billing systems (RUBS), property managers can allocate the cost of utilities to residents based on their actual usage or predetermined formulas, respectively. This can generate additional income for the property while encouraging residents to be more mindful of their utility consumption.
Amenities and Services: Offering additional amenities and services to residents can generate other income. This can include providing paid services such as laundry facilities, parking spaces, storage units, pet services, or fitness centers. Property managers can also consider partnering with local businesses to provide exclusive services to residents, such as discounted gym memberships or package delivery services, in exchange for referral fees or commissions.
Late Fees and Administrative Charges: Property managers can charge late fees for rent payments that are not received by the due date, as well as administrative charges for additional services such as lease renewals, application fees, or pet fees. These charges can generate additional income for the property while incentivizing residents to make timely payments and follow property rules.
Advertising and Signage: Property managers can generate income by allowing advertising and signage on the property. This can include billboards, digital displays, or sponsored events, where local businesses can advertise their products or services to residents or visitors in exchange for advertising fees or sponsorships.
Property Upgrades and Renovations: Investing in property upgrades and renovations can increase the property's value and attract higher-paying residents, resulting in increased rental income. Upgrades can include modernizing common areas, adding new amenities, improving landscaping, or renovating units to command higher rents or attract premium renters.
Ancillary Income Streams: Property managers can explore additional income streams by leveraging their property's unique features and location. For example, if the property has a rooftop with a great view, it can be rented out for events or parties. If the property has excess land, it can be utilized for community gardens or leased for additional income. Property managers can also explore partnerships with local businesses to provide exclusive services to residents in exchange for referral fees or commissions.
Using the above tips, property managers can generate additional income and increase the property's profitability. It's important to carefully evaluate and implement these strategies while considering local laws, regulations, and resident satisfaction to ensure a successful and sustainable approach to boosting other income!