Looking to boost your rental income? You’ve probably thought about raising the rent.

Depending on a variety of factors, increasing the rent could be the right move – or it could backfire. If you’ve made improvements to your property or if your local housing market is hot, a rent increase might make sense. On the other hand, you risk losing good tenants, and that increases costs and risks even if you manage to fill the vacancy quickly. Plus, if you’re in the middle of a lease term, it could be a while before you see any increased revenue.

The good news is that there are many other ways to make your real estate enterprise more profitable. Here are 10 ideas to consider:

On average, tenant turnover costs one to three month’s rent – not including any forgone rent during vacancies.

1. Offer Storage Space
   If you have some underused space on your property, think about offering convenient onsite storage to your current tenants. Let’s say the cost of self-storage is about $1.20 per square foot per month (more if it’s climate controlled) – so even if you just have an extra supply closet that measures 12 by 15 feet, you could boost your revenue by over $2,500 a year.

2. Rent Out Parking Space
   If you have room for more cars than you have tenants, consider renting out parking spaces to outside parties on a monthly or yearly basis. Especially if you’re in a dense urban district, on-street parking can be hard to come by, and many commuters are happy to pay for a dedicated spot.

3. Provide Furnished Rentals
   Depending on the needs of your current and prospective tenants, giving them the option of “furnished or unfurnished” can be a smart strategy. Residential landlords who cater to students and office-space owners who rent to startups have often profited from investing in well-made, hard-wearing furniture, lighting fixtures, and small kitchen appliances.

4. Add Optional Services and Amenities
   If your tenants are paying third parties for cleaning, landscaping, security, telecommunications, or office needs, consider linking up with a vendor and offering these services for a monthly surcharge. Coin-operated laundry machines and vending machines can also allow you to establish passive income streams while providing added convenience to your tenants.

5. Maximize Your Rentable Space
   Do you have a garage or basement that could be converted into an additional living or office space? Do you have a vacant portion of your lot that could accommodate an accessory dwelling unit (ADU) or even a storage shed? By putting every square foot of your property to its highest and best use, you can maximize your earnings.

6. Decrease Turnover
   On average, tenant turnover costs three month’s rent – not including any forgone rent during vacancies. That means that one of the best ways to increase rental profit is to increase the amount of time between new leases. Some landlords have started retention programs that progressively reward tenants for their longevity and track record of on-time payments.

7. Streamline Property Management
   Along with mortgages and maintenance, property management is a major expense. If you’re handling everything solo, much of that expense might come in the form of opportunity cost (what else could you be doing with your time?). Look into digital tools that could simplify leases and payments – and think about leveraging the experience of a property management company.

8. Allow Pets for a Fee
   Many landlords forbid animals because they’re worried about damage. But consider the fact that over half of Americans own a pet and consider it to be a member of their family. That means allowing pets can widen your applicant pool – and that you may be able to charge a pet fee that more than offsets any increased maintenance costs.

9. Sell Ad Space
   If you have a commercial property with high visibility and plenty of space, putting up a billboard could be a no-brainer. Even outside of major metropolitan areas, printed and digital billboards can generate thousands of dollars each month in passive revenue. Just make sure to look into signage regulations in your area.

10. Boost Your Finances
    Whether you have one rental property or dozens, it’s important to have a financial partner you can trust. Consult an experienced business banker to make sure your mortgage and other loan products are optimized for your specific capacities and goals, and that you’re taking full advantage of all the tools and services that are available to you.

Go Further

For more tips on how to take your real estate business to the next level, consult your financial institution.