Are you a property owner that’s looking to unlock hidden revenue opportunities? The good news is, if you’re looking to increase all of your rental property’s value, you’re on your way to success. Ancillary revenue is any income that doesn’t include rent, that you gain from the property or properties you manage. You might think, “That sounds great, but where do I start?” Property managers can drive ancillary revenue in many ways to create more value that residents will appreciate and are willing to pay extra for. Continue reading the helpful tips below on different ways to unlock hidden revenue opportunities for your properties.
Resident-Focused Ancillary Fees
Start by finding optional services you can provide for your tenants that’ll be important to them. Consider sending a survey out to all your tenants to gather ideas on what they’d be willing to pay extra for. Include a wide range of amenities to add that are not already available, property upgrades, and optional fees for your tenants to choose from. A few examples of amenities to add to the survey include an in-house washer and dryer, washer and dryer hookups, air conditioning, a backyard patio, hardwood floors, a dishwasher, and a fireplace. Upgrades to add to the survey could include fixing the driveway, installing new countertops, elevating the landscaping, installing a backyard fence, adding the best home security for the landlord’s and tenants’ safety, replacing the roof, or installing new windows. An additional fee that you could offer to your renters is a pet fee if they choose to have an animal. Once you have an idea of what your renters are looking for, you can then start creating a plan of action for remodeling, construction, or upgrades for your rental properties.
Investor-Focused Ancillary Fees
On the flip side of additional revenue opportunities, you should consider the investor side as well. Anything that you spend money on, should be an additional source of income. Offering a regular maintenance checkup is a great way to ensure the property is being taken care of, but it’ll also allow you to charge maintenance fees. This is beneficial for both you and the tenant because if something were to break, such as the boiler, then you’ll have the maintenance fees to help cover the costs to fix or replace whatever is broken. You should also consider hiring a professional photographer for your properties so that when it’s time for a new tenant to move in, you’ll have a wide range of photos you can show them or include on your social media platforms. Don’t forget eviction fees and renters insurance. By adding a late fee to their bill, it’ll encourage all your tenants to pay their rent on time.
Finance the Renovations and Upgrades
Now that you have an idea of what your tenants are interested in and additional fees that will be helpful for both residents and investors, you can move forward with the renovations and upgrades. It’s no secret that some of the upgrades or amenities you plan to make can be costly. As a property owner, you might want to explore a low-interest home equity loan that’ll allow you to pull funding from the equity you’ve built up over the course of your mortgage term. If you plan to make the property updates as soon as possible, this option will provide you with fast funding that can be tax-deductible when used on home improvements. You could also do all the renovations and upgrades yourself if you have experience. This will save you labor fees and allow you to complete the job on your own timeline. It’s crucial to have a plan in place to help fund the projects and a timeline to get them done. This will allow you to let your tenants know an accurate time frame for when the upgrades will be completed and help avoid potentially hurting your finances.
If you’re looking to find ways to increase your rental property’s ancillary revenue, be sure to find evaluate each property and tailor your services accordingly. A main priority of yours is to focus on increasing the value of your properties, so your tenants are happy and will continue to rent.