Successful real estate investors are constantly looking for ways to generate more money out of the spaces they already own. While adding properties to your portfolio is an essential part of finding success in the world of real estate investing, it's also important that you know how to maximize the net operating income of each property that you already own. While you can increase the rental fees for the units in your complex at the end of a lease period, doing so may cause you to lose some tenants. One of the most effective ways to start making more money from an existing property is to install additional revenue sources.
When you start offering more amenities, even those that tenants have to pay more for, you increase the perceived value of your property. If you've been charging $1,300 per month for rent and suddenly bump that to $1,400 without adding anything, tenants will probably start looking for alternative living options. However, if you take steps to start giving tenants more bang for their buck, they will likely stay. If you own an apartment complex, especially one in a major metropolitan area, there may be a potential revenue generator right under your nose.
You should certainly start if you're not already charging a separate parking fee for your tenants. According to industry experts, landlords who charge for parking can expect to make anywhere between $75 and $500 per month in parking fees! As is the case in any type of real estate, location is key. If you own an apartment complex in a remote, rural area, you may not be able to charge anything for parking. However, most apartment complexes lend themselves to paid parking. While many landlords provide a discount for units that have multiple vehicles, the fact remains that paid parking is a great revenue generator. However, your parking lot may be able to do more than hold vehicles.
You're probably already aware that some areas of the country rely more on public transportation than others. If you own an apartment complex in a metropolitan area, especially near a business district, many of your tenants may opt to walk to work instead of purchasing a vehicle.
Let's say that you own an apartment complex with 100 units and on your property, there is a parking lot capable of holding 100 vehicles. However, only 50 of the people who live in your complex own vehicles. While you can generate extra revenue from those 50, you may be missing out on revenue from the other 50.
You may not want to go through the time and expense associated with constructing something permanent on the unused portion of your parking lot, but that doesn't mean you can't use that vacant space to generate more income. One of the most popular ways that landlords are using the empty space in their parking lots to make more money is by installing self-storage units.
There’s a good chance that your tenants have more belongings than they have room for in their apartment. With that in mind, they’re probably already paying for self-storage somewhere. The self-storage industry is booming, as roughly 10% of homes in the United States acknowledge that they pay for self-storage. Additionally, that number is expected to increase in the coming years as more people downsize. Additionally, young families just starting out often choose to rent an apartment over buying a home. With millions of people nationwide opting for self-storage, there is money to be made.
A small self-storage unit provides an average of $90 per month for owners while larger units can generate up to $300 per month, per unit. That means that if you only converted half of those empty spots in your parking lot into self-storage, you could earn between $27,000 and $90,000 per year!
If you're a landlord looking for a way to convert unused parking spaces into a revenue generator, Max Space Storage has the solutions you're looking for. Our units are affordable to install, and you can choose between purchasing them outright or letting us manage them for you.
