9 out of 10 landlords do not realize these 3 simple ways to make easy extra money!

Make Your Tenants Happy & Make More Money At The Same Time.

As a landlord you have 2 objectives in mind; 1) make money 2) make your tenants happy. Now, what if we could tell you that there was an easy way to do both with little to no effort required? Well, you better keep reading!

Accept Pets To Broaden Your Potential Tenant Base And Make Your Property More Marketable.

One of the most common questions we receive from tenants is “do you accept pets?”. In our experience most owners do NOT want to accept animals because they fear of damage occurring. It is very true that animals can cause damage, but it’s even more certain that humans will probably cause even more than animals! So, you need to take a deep breath and change your outlook on this topic for the sake of your bottom line and your tenant longevity as well!

Nexus Property Management highly recommends charging ‘pet rent’. What this means is that for each pet you and the tenant agree to a specified dollar amount per month per pet that is to be paid for the duration of the tenancy. The most common amount is between $25-$50 per pet. There are many benefits to this approach with the first being you are now collecting additional rent for the same unit without having to do ANY upgrades! Second, it is ‘rent’ and not a deposit. Most landlords demand a ‘pet deposit’. This is a viable option, but the downsides to it are that you must refund it at the end of a tenancy (as applicable) if the unit is left in good repair, and its finite in nature. For example, if you took a $300 pet deposit and the tenant stayed for 5 years, you have lost out on such a great opportunity! If you charged $25 ‘pet rent’ for that same 5 year tenancy you would have made $1500 AND you would NOT have to refund it. Now imagine if the tenant had 3 cats, think about all that extra money!

Add Laundry Facilities To Provide Convenience And Additional Income Streams.

Next up are laundry machines, yes, that’s right the tenants do have to wash their clothes! In our experience laundry is proven not only to increase the duration of a tenancy (because they have this additional comfort of home), but it also increases the revenue you bring in. Our studies show that each occupant (no matter the age) will generate roughly $16 in monthly laundry revenue. So, if you have a 4 family home with 8 total residents you have the potential to generate about $130/month in additional revenue for yourself! This estimate is based on a wash and a dry each costing $2.00 per cycle respectively. A used pair of laundry machines typically come included with the purchase of a multifamily home, but if not, you can grab a pair (used suggested) from your local appliance vendor for about $500 per machine. The average lifespan of laundry machines are 10 years plus, so your payback period is short, and your utility is quite long!

The third and final tip to increase your bottom line simply is to add a ‘change machine’ right next to your laundry machines. By change machine we mean a machine that accepts bills and dispenses quarters. The most common type of machine will change $1 and $5 bills. According to our research it will increase the usage of laundry (due to convenience) by 150% per occupant. This means each occupant is generating about $24/month in laundry revenue. So, in total, to reference our previous example, this would now become about $190/month in revenue. The cost for a used change machine will be about $300, and will last for 20 years plus assuming it is used properly. Once again, this creates a very short payback period and a very long utility period!

So, what do you think? Not bad, right? All it takes is a couple minor adjustments to your processes and you can increase your bottom line substantially with little to no effort. Now, imagine how much more effective you could be with Nexus Property Management managing your property and giving you advice on a daily basis! Don’t forget, we also have protected office locations available for sale. Visit our franchise page today to learn more about our offering!

Gregory Rice is the Vice President of franchise sales for Nexus Property Management®.

Nexus Property Management® is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

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