4 Additional Income Opportunities for Multifamily Real Estate
As a multifamily real estate investor, you know that a steady rotation of renters allows your property to remain profitable. Of course, there will be times when units are vacant between renters, so having additional income streams in your building is wise. While the following opportunities may not apply to everyone, they may be enough to give you some ideas so you don’t have to rely on rent money alone.
When a building has a parking lot or structure, it’s not uncommon for tenants to pay an additional monthly fee to reserve a spot. Furthermore, if your building is in a sought-after area and has more parking than your tenants require, you could offer a daily rate for non-residents who wish to park as they visit the area.
If the units in your building don’t have laundry machines, having a laundry facility is a great way to bring in extra money. Laundry within the building is a selling point no matter where you’re located, as it’s far easier to walk downstairs to do laundry than it is to walk or drive to the laundromat. By adding laundry to your building, not only can you increase the rent for this added convenience, but you’ll also collect on the funds tenants pay per load. While the cost per load is nominal, when multiplied by the number of tenants, you’ll be enjoying the added cash in no time with just a few loads per week.
Installing a couple of vending machines in the lobby where your tenants can grab a quick snack or drink is a great benefit for both you and your residents. These machines can be costly at first but often pay for themselves quickly if stocked with alluring options.
Fitness Facility Fees
While this is a much larger investment upfront, having a fitness facility can make your building much more desirable. By opening the facility to all tenants and including a monthly fee in the rent, you’re giving your residents a chance to be more active and social, while making a nice profit in the process.
As you can see, there are plenty of ways to add to your bottom line that go far beyond rent alone. Many of these options are two-fold as they increase the value of your units while producing additional income, so they’re certainly worth considering. Multifamily real estate is a great income generator, so keep your eyes open for any other ways your can make your building more profitable.