The goal of owning a rental property is to make money. In this article, we’ll provide five ways that landlords at Rentalutions make money:
#1 Screen Tenants
Screening tenants helps you make more money from your property by helping you pick tenants who are likely to pay rent on time every month. After all, rent is the main source of income on your property.
One of the best ways to do this is to complete the following five tenant screening steps:
- Host individual property showings so you get to know a prospective tenant
- Require a rental application
- Reach out to the tenant’s employer to verify income
- Contact the tenant’s prior landlords to see if the tenant has a history of paying rent on time and taking care of the property
- Require a tenant credit report and background check
If you thoroughly screen your tenants, you’ll be on your way to finding and keeping quality tenants who pay rent on time and take care of your property, so you can make more money from your property.
#2 Rent Parking Spots and Storage to Tenants
You can increase your rent price by including parking or storage. Or you can charge an additional fee if tenants are interested in renting parking or storage.
If you’re not renting parking or storage to your existing tenants, then you can rent your parking spots using SpotHero. SpotHero makes it easy for you to rent your parking spot on an hourly, daily, or monthly basis.
If you’re including parking or storage in your rent price, then you should mention this in your online rental listing. You can also mention that your building has parking or storage for an additional fee, if you prefer to rent it separately. This can make your rent price more appealing and help you find tenants who are seeking the amenities you have to offer.
#3 Require Renters Insurance
Requiring renters insurance is a smart business decision. The goal is to make sure you don’t end up with costly bills for damage you shouldn’t have to pay for. Renters insurance is a very reasonable price for tenants. It typically costs about ten dollars per month, but can cover thousands of dollars in damages. It can cover damage for flooding, faulty wiring, fires, theft, vandalism, falling objects, and more.
Tenants with renters insurance are less likely to ask their landlord to cover damages because their insurance will cover the cost. On the other hand, tenants without renters insurance are more inclined to ask you to pay for damage. To help avoid having to pay for expensive damage, you should require renters insurance.
#4 Install Solar Panels on Your Roof
Solar panels capture the sun’s energy and convert it to electricity, which lowers your electricity expense significantly. For example, southern California residents can save about $137 per month, Chicago residents can save $67 per month, and Boston residents can save $103 per month. Saving utility expenses is a smart way to save money. You can say “utilities included” in your rental listing and justify a higher rent price.
Solar panel installation costs about $7-9 per watt. A 5 kilowatt system costs about $25,000-35,000. Most utility companies offer incentives; some even subsidize the cost up to 50%.
You can also rent your rooftop space to nearby buildings so they can install their own solar panels. Some buildings have better attributes for installing solar panels. Your roof is good for solar panels if it’s newer, exposed to sunlight for the majority of the day, and has open space for equipment.
#5 Consider Short Term Rentals
Services like Air BnB and VRBO allow you to list your rental property as a short-term rental. These services typically cater to individuals who are traveling and want to rent a space for the short-term. You can rent out your property for one night, one week, etc.
There are some important differences between short-term rentals and signing rental leases. For one, there’s the potential to make more money in a shorter amount of time. However, short-term rentals will probably not be rented every day, meaning you’ll have a higher vacancy rate. Plus, there’s some additional risk of letting people stay short-term, including potential damage. That being said, short-term rentals can potentially allow you to make money per day, rather than per month.
Making sure your tenants will pay rent on time every month is the best move you can make as a landlord. You can also make additional money by renting your parking spots, storage spaces, requiring renters insurance, and taking advantage of short-term rentals. These ideas are easy to implement and will create steady sources of income.