For landlords, an ideal property manager will extend their services to help them handle a wider range of the responsibilities associated with owning rental properties. Due to the COVID-19 pandemic, property owners have turned to their property managers for more help than ever before.
This wide range of new responsibilities includes everything from cleaning and sanitation to working with tenants who may have trouble paying their rent due to a loss of income.
These changes have led many landlords to see incredible value in property managers who can provide them with a larger variety of services regarding their rental property. This gives property managers more opportunities to increase their income and gain more streams of revenue.
When it comes to property management, the most sought-after services by landlords include the following:
- Rent collection.
- Maintenance and repairs.
- Handling the eviction process.
- Leasing and marketing of the rental property.
- Frequent and detailed property inspections, including move-in and move-out walk-throughs.
Find out how you can turn these services into additional revenue streams below.
In the last few years, more landlords are reaching out to their property managers asking that they provide cleaning services for their rental properties. This can be an excellent opportunity for property managers to maintain an extra source of income.
Any property manager or landlord needs to ensure that the property they are taking care of is always clean and habitable. Taking extra steps to ensure this while also using high-quality cleaning products that are safe for the environment will keep tenants happy and more likely to stay long term.
Property managers may also offer cleaning services to tenants, as some property management companies offer this service in their resident benefits packages.
Rental Property Construction and Renovation
If a landlord is faced with high vacancy rates at their properties, it may be worthwhile to use that time to invest in some upgrades or renovations to the home. This can be good news for property managers.
For property managers, there are two different ways to offer this service to clients. The first is to provide your own contracting service and keep the job internal. However, to do this successfully, you will have to make sure that your contracting business is properly licensed and insured.
The other way that a property manager can provide renovation services to the landlords they work with is to simply partner with an existing contractor that they trust or has come highly recommended. In this case, the property manager would mainly act as a middleman and then collect the referral fee.
Advice on Legal Matters
The expertise that property managers have regarding local legal matters and laws continues to grow more and more valuable as time goes on. Navigating legal rules and regulations that come along with owning a rental property can risky or complicated for self-managing landlords.
This may be a reason for landlords to seek the help of knowledgeable and reputable property managers in their respective areas. Generally speaking, property managers must be familiar with and knowledgeable about local rules and regulations that have to do with rental properties.
However, the task of officially offering legal advice can be a tricky thing to get into. If you are not a licensed and practicing attorney, then you will ultimately be limited in the amount of legal advice you can offer to landlords.
The most that you can typically do is to warn landlords about relevant issues that may get them into legal trouble. As a property manager, creating legal documents, litigating, or legally representing landlords is illegal.
Some states have also passed legislation stating that some services previously provided by property managers, like sending demand letters or advising a homeowners’ association on legal matters, are also illegal.
However, property managers have the option to partner with a law firm to consult with when their clients bring up questions regarding rental laws. They can then collect a referral fee from their clients or the firm.
This is another service that a property management company can work with an outside firm on, in exchange for a referral fee. Insurance services are something you can also offer to both tenants and landlords that you may work with.
Offering both tenant and landlord insurance is beneficial for everyone involved. The property manager gets an opportunity to continue growing their income, while landlords and tenants can benefit from peace of mind.
Both landlords and tenants will be grateful to be able to rest knowing that their property and positions are all protected against the unexpected.
In recent years, some property managers have decided to extend their services to include outside work for the rental properties under their care. This can look like adding an outdoor cleaning team, lawn care, or in some colder locations, snow clearing.
Some property managers are even offering home care services to tenants, rather than just reserving them for the property owners. This is particularly geared towards tenants of single-family homes who may be overwhelmed by outdoor work.
Either way, a property management company can either employ an in-house outdoor maintenance team or they can partner with an external one for a referral fee.
HVAC Filter Replacement or Cleaning
If the rental property being managed is located in a warmer climate, then functioning and reliable HVAC systems are crucial to a tenant’s comfort while at home. Simply trusting a tenant to continue to frequently replace the filter is often not a good way to ensure that the system is being well maintained.
To ensure the HVAC system stays up to date on maintenance and to bring in some extra income, property managers can charge an extra $15 to $20 a month just by ordering and delivering filters directly to tenants.
This is a relatively simple way to increase your cash flow while also taking extra care of the rental property. If you want to find more ways to increase your cash flow, check out some of the best books for property managers to get advice from entrepreneurs.
Many tenants have pets, and this can be an opportunity for you to bring in some extra revenue as a property manager. Being a pet-friendly rental property is a big deal, and this alone can make the rental properties that you manage more desirable to many people.
To optimize this for increasing your monthly income, you can charge additional monthly rent for pets, the price being determined by the number of pets a tenant has, their size, etc.
This happens to be one of the most used services when it comes to rental properties. To help make this service more profitable for you, you can bill all tenants a monthly fee for pest control.
They may not need it every month, but the funds can be useful in case the rental property is ever faced with a larger pest issue that must be dealt with. This monthly fee can be both a protective measure and an increase in cash flow for you.
Charging admin fees to both the rental property owner and the tenants is an excellent way to increase cash flow. Admin fees can be applied to a multitude of different services including things like renewing leases, managing a project for a rental property owner, and evicting tenants for the landlord.
This fee can generally be applied to any service a property manager provides for their clients that is outside of their normal operation as described in their management agreement with the landlord.
While this is often overlooked, providing a valet trash service for tenants in apartment complexes can earn a considerable amount of income each month. Essentially, this service involves paying for and installing garbage bins near the main door of each rental unit.
For a fee of around $20 to $30 per month, trash may be collected from each of the tenants’ bins and taken to the compactor by someone on your property management team.
This prevents the compactors from being overused by tenants and also brings in a healthy amount of cash flow every month, making trash collection and disposal a good way to maintain the property while making an extra income every month.
One of the most versatile options on this list, providing storage rentals is an excellent way to increase a property manager’s cash flow. Storage units and garages can provide some of the most lucrative returns of all the services and items on this list.
Whether it’s offering tenants access to storage units for their extra furniture or garage space for a care they don’t drive, there are endless ways to use storage rentals to your advantage as a property manager.
Another way to increase your income as a property manager is to provide rentable furniture for tenants. Some tenants prefer furnished properties and would rather rent their furniture long-term than commit to the time and energy that it takes to go out and buy it.
From the cumbersome task of moving furniture in and out of a property to the time it takes to find the right fit for their new space, offering tenants a convenient alternative to furniture shopping for an extra fee is a service that many renters may choose take advantage of.
Keep in mind that this practice is typically more successful in higher-income areas.
Washers and Dryers
Washers and dryers that are located within the rental building are an attractive amenity for any tenant. A good way to make some extra income as a property manager while also making the property more desirable to tenants is to install washer and dryer machines that tenants may use for an extra fee.
While this idea is simple, it can be an excellent source of extra cash for your property management business. Washers and dryers are universally needed and most tenants will be grateful to have convenient access to them.
When it comes to short-term leases, you should always be charging more than you typically would for a long-term lease. This price difference can account for the costs associated with shorter-term tenants, such as marketing, cleaning, and searching for a new renter once they move out.
While this income typically is directed to the landlord of the property, it is possible and for property management companies to charge an extra fee when it comes to managing short-term rental properties.
If a property manager has a building under their care with a long list of amenities available to tenants, there are ways to potentially monetize them. While things like charging an admission fee to use the pool are not recommended, there are other ways to optimize the benefits of the building’s more desirable features.
This includes offering additional items that the tenant has the option to rent or purchase each month. For example, you might have a parking garage for the apartment complex that you manage. If there are certain parking spots that are more desirable than others, you could convert them into “VIP” parking spots.
While all tenants will still have access to parking and will be assigned their own spots, they now have the opportunity to pay an extra $20 a month for a VIP parking spot. This is an easy way to increase your income without having to spend extra.
A redecoration fee can be charged during the move-in and move-out periods of a new tenant. For example, your property management company can offer an “easy move out’ package.
This would be ideal for tenants who want to leave the property as easily as possible, or for landlords who don’t want to deal with the many tasks associated with getting the property ready for a new tenant and want you to take over the responsibilities.
This can include anything from basic cleaning of the property to repainting the space. Often, both landlords and tenants may be willing to pay extra, sometimes even as much as $300 to $500, to have this stressful period of the renting process taken care of.
For a set fee, you can offer tenants the ability to pay just one bill each month for all of their utilities. This includes water, electricity, gas, or any other utilities that may be relevant to the rental property.
Some tenants have trouble keeping track of all their utility payments, so combining all of them with an additional fee can help your tenants budget and keep track of their finances, while increasing the amount of revenue that your property management company is generating each month.
Parking or Garage Access
Providing your tenants with a reliable and safe spot for their cars to be parked can go a long way, and many tenants are willing to pay extra for the added security. Giving tenants access to a garage or a parking spot can be quite the desirable amenity for any renter.
Aside from the security aspects, providing tenants with a guaranteed place to park their car when they get home relieves them from needing to rely on things like street parking, can go a long way.
This keeps tenants feeling secure and content in the unit while providing you with another way to generate consistent income.
At the end of the day, there are countless ways that property managers can increase their monthly cash flow, all while making their clients and tenants happy by providing extra services and making their lives easier.
If you’re looking for services that your property management company can provide to generate some extra revenue, give the list above a try!