Renting out a house is a great way of gaining a steady income. But if you have your wits about you, there are several ways you can make more money in addition to the rental price. Here are five ideas to consider.
1. Always Sign a Professional Residential Lease Agreement
First off, you need to ensure you do not lose money. One of the easiest ways to become out-of-pocket is to rent out your house without a contract in place. If you don’t ensure that you have a legally binding agreement between you and your tenants, you could lose substantial money if your tenants decide to abruptly leave without paying the rent. So, ensure you use a residential lease agreement to avoid potential problems.
2. Rent Out Furnished Units
You’ll be able to rent out a furnished house for more than an unfurnished property. While you may be appealing to a smaller niche market with a furnished house, people who want properties with furniture are willing to pay for it. The better furniture your house has, the more you’ll be able to charge. Of course, you’ll have the upfront cost of purchasing furniture, but it can be well worth the investment. You don’t have to spend an arm and a leg on furniture, but even if you spend a thousand dollars or more, you’ll regain your outlay within months and be able to continue charging a higher rental price than you would if your house was unfurnished. In addition to being able to ask for a higher rent, you’ll also be justified in asking for a higher security deposit.
3. Rent Additional Storage
If your house has a basement, attic, or outbuilding, consider converting the space into a storage unit. Storage space is always in high demand. So, you could rent your converted storage space to your tenants or you could rent the space to someone else. Furthermore, by renting out a storage unit, you won’t face all of the headaches that come with regulations for rental properties. Work out how much it will cost you to convert a space into a storage unit and calculate how much rent you can attain for it on a monthly basis. You can then work out how long you’ll have to wait to make a profit on your investment. It will probably not take as long as you think and the cost will soon be justified as you begin making more income.
4. Offer Property-related Services
Large apartment blocks offer a range of services to their tenants, so why not do the same? You could offer your tenants services like housekeeping, lawn-mowing, and laundry. You don’t have to get your hands dirty and provide the services yourself. Instead, find a good local servicer that you can partner with. In exchange for a cut, you then offer the company’s services to your tenants. Offering such services can even help you to find renters more easily, as you’ll be able to attract tenants by advertising the property as having something like “regular housekeeping services available.”
5. Buy a House to Rent in the Right Area
If you have yet to purchase your first house to rent, or if you’re in the process of expanding your property portfolio by purchasing more houses to rent out, you can make more money by choosing the right area. The neighborhood can determine the type of tenants you get and the vacancy rate, and you could pay fewer property taxes on certain types of properties. Buying a house in an upcoming area will also allow you to increase rent over time. You’ll also own a property that increases in value.