Are you searching for ways to increase your passive income apartment complex revenue? If so, you’ve come to the right place.
There’s no doubt that the last couple of years have been tough for many landlords across the United States, especially in states where rent control is now a reality.
Coronavirus has made it more difficult for some landlords to make money than ever before since many people who were employed are now unemployed and this has of course cut into profits of landlords across the United States.
Thankfully, there are a wide variety of ways that landlords can increase the revenue from their apartment complexes.
Tip #1 – Convert Unused Apartments Back into Rentable Units
Does your apartment complex have one or more units that you have been using as a storage closet or maintenance room over the last several years? If so, one of the first things that you should do is consider converting those unused apartments back into rentable units.
By converting unused rental units back into usable spaces, you can easily boost your rental income and earn $900 to $1000 (or more) per unit each month.
Tip #2 – Add an Onsite Laundry Facility
Having a laundry room in your apartment complex should be one of the first passive income ideas that you consider implementing to increase revenue because the simple fact that your tenants are going to have to do their laundry somewhere so why shouldn’t they be doing their laundry at the apartment complex that they live in?
Setting up a laundry room doesn’t have to be costly or time-consuming, you can easily hire a laundry service to provide you with new machines and then contract with them so that they will be responsible for collecting the coins and servicing the machines on a regular basis.
Creating a laundry room for your tenants will also enable you to offer them a valuable service while at the same time increasing the overall value of your apartment complex and your monthly passive income revenue as well.
Tip #3 – Offer Your Tenants Onsite Storage
Another great way to generate revenue from your apartment complex is to offer your tenants an on-site storage space.
This is an important option to consider because of the simple fact that most people are already storing their items off site anyway and if they were given an option, they would prefer to have the ability to store their items in the same building that they live in.
Depending upon the storage option that you’re able to offer your tenants, you should be able to earn an easy $55 to $200 per month per tenant so it’s best to seriously consider this option because it’s a great way to increase the revenue that you will be earning from your apartment complex.
Tip #3 – Start Charging Late Fees
If you’re not charging late fees already, you are literally leaving money on the table every single month so it’s best to start implementing this as part of your overall strategy to increase the revenue that you’re earning from your apartment complex.
Late fees are important because not only will they help to increase your bottom line, late fees will also eliminate the problem of having tenants who pay their rents late. Any tenant who pays a late fee, will be less inclined to pay their rent late again since they will remember the financial “sting” of having to pay the late fee.
Tip #4 – Start Billing for Utilities
Although you may be the type of landlord who has paid utilities in years past, continuing to do this is not the best strategy.
Instead of paying the utilities for your apartment complex, you should consider implementing a Ratio Utility Billing System Program because this enables you to bill your tenants for utilities like electric, sewer, water, gas usage and also garbage instead of you having to cover those costs on a monthly basis.
Tip #5 – Implement Other Fees
You may start charging your tenant late fees if they pay their rent late but did you know that you can also implement fees and other areas of your business as well? For example, you can also start earning additional revenue from late fees when you charge prospective tenants an application fee to run their credit and do a background check, plus you could also charge move in fees as well.
What is a move-in fee? It’s a non-refundable see that you will charge your tenant in place of the security deposit.
Move-in fees are ideal because of the fact that the security deposit often creates a point of contention between landlords and tenants plus when the tenant moves out, the landlord has to return the remaining balance of the tenant’s security deposit after deducting the cost of cleaning and maintenance to the unit.
With a move-in fee, it’s 100% non-refundable so you get to keep the entire fee while avoiding the uneasiness which can come from having to refund the security deposit to your tenant after they move out.
Contact Rent Portland Homes
At Rent Portland Homes, we’ve been managing single family and multifamily properties in the Portland area for years.
Our company takes pride in offering excellent property management services including tenant selection/placement, rent collection, maintenance, customer service, accounting and more.
Don’t make the mistake of managing that multifamily property yourself, let us do it for you.
For more information about the property management services that we can offer you, contact us today by clicking here.