How To Increase Net Rental Income for Multi Family Housing

Frank Chen

Hi, this is Frank Chen with REIClub.com, your link to creative real estate investing. Today I’ve got a quick video on how real estate investors can make more money without raising rents

1. Energy Upgrades

Energy Saving maintenance, by having these simple things done, it will put more money in your pocket
shower heads, replace shower heads to use less water
low flow toilets, or put a bag of water in the tank, less water used
timers on lights and sprinkler systems, install timers, this decreases electricity and water
energy saving light bulb replacement, LED bulbs use approximately 80%less electricity and last longer
Low flow faucet, install hardware to faucet to slow water pressure

2. Property Upgrades & Services

Furnished units, A furnishing an apartment will add value and landlord can add charge for furniture use. Average income about $150-200 a month for furnishings, depending on location.
Parking- Assign spaces and charge for additional parking. Average charge $30 to $150 again location.
Vending Machines, soft drinks, tenants seem to like this. Buy or rent vending machines.
ATM machine, install and charge fee for use, if five people a day used ATM at $3 per use thats $15 a day and an extra $450 a month
Laundry facility, it is a fact that installing a coin operated facility versus tenants having a washer and dryer in their unit is much less costly to the landlord. Tenants use more water if it is in their unit, and by using a coin operated machine they are paying for the cost of water and electricity also with extra revenue.
Internet-Group rates, make revenue by charging retail internet prices and getting it wholesale, average cost to resident, again depending on location about $25 per unit a month.
Cable TV/Satellite TV -Landlords get group rates and charge retail prices $20 to $25 per unit or more.
Computer lounge, charge hourly rate, In bigger buildings, if there is extra room, install the computers and install software that would allow user to buy computer time. $10 to $15 an hour for use. Or charge by minute increments. tenant may need quiet or private area to use computer.
Cell Phone Provider- Landlord can possibly get a tower installed on property, Call your local providers for information. Charge retail prices while getting it wholesale. Depends on location.
Storage – There always seems to be a storage issue with an apartment. Tenants will gladly pay to have storage close by and have easier access to their personal property. Prices are charged according to the area market. Also boat and RV storage can be added to the menu of services.

All of these tips wil help real estate investor increase net rental income and cash flow, by making energy saving upgrades, upgrading the property and adding services.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.