What if you could turn a simple idea into money? How much money? It depends. It depends how good the idea is and how well you implement it.
You're intelligent to know that if you give keep adding more value, you make more money. The same applies to real estate investors who must continue to learn new ideas to keep adding value.
Do you want to know 7 ideas that can add more value to your investments and add more income?
Before we go ahead and learn about these 7 ideas, I want to tell you a short story about the jungle.
You see, it was a hot Friday afternoon, and all the animals in the jungle were debating who deserved the most credit for producing the greatest number of babies at birth. So they go ask the lion of the jungle, "how many kids did you have at birth?"
"Well, just one. But he's the king of the beasts!"
What's the point of having more of something that is NOT as valuable as oppose to having one thing that is uniquely valued?
Would you rather have 10 Honda Civics, or just 1 Ferrari?
Real estate investing is a business. A business that has customers known as tenants. You can dramatically increase your income of your property by:
1. Improving the quality of the tenants
Get tenants that actually pay on time. Tenants that are in the high income brackets that have steady jobs. Tenants with no criminal background, good credit. No exceptions to these. The better the tenant profile, the more you can charge for rent. This can easily put an extra 30% of income in your pocket.
As your improving the quality of tenants, make sure you add more value so you can keep them there by having
2. On site Laundromats
If the property doesn't have a laundromat, you're missing out on some additional income. Income that instead of going to the nearby laundromat, it could go into your property, making it easier for your tenants to solve their laundry needs.
3. Vending machines
People get hungry. People like to snack. Why not have a vending machine or two onsite? The tenants would love the convenience of having cold beverages or light snacks right where they live, without having the drive 2 blocks to get a cold soda.
4. Pool/ Spa/ Gym
The gym charges $40/ mo. If you had a 100 unit property, that is an easy $48,000 on your bottom line on a property. That could equate to hundreds of thousands of equity on a property. Can your property increase its value and income by adding a gym, pool, and or spa?
Other than adding "stuff," to the property, you can also "tweak" a few things about your property such as
5. Changing the toilets and other appliances
Why would this help increase your income? Well, by having toilets that are designed to save water, imagine how much money you can save by dramatically cutting your water bills in half.
6. Change the landscape
Does your property's architecture becoming a money waster? Does it have a big patch of grass that needs to be watered constantly? Does it have an office that using too much electricity? Maybe you can change light bulbs and even the windows of the units and everything else.
7. Charge for late fees and the use of credit cards, or auto pay
This can equate to thousands over a year if you really implement late fees. Even one day late fees can be an extra $30 bucks per tenant. Also, you can charge for the convenience of paying with a credit card, online, or autopay.
3 BONUS WAYS TO INCREASE INCOME:
1. Billed the tenants for their own utilities. By having a master meter, the tenants can be responsible for paying their own bill, as they have more control since they can know how much water or electricity their using up. As the real estate investor, you can reduce your liability of having to pay out of pocket if tenants went over the average utility bill.
2. Build more units. Does your property have enough land that you can build more? If you have an apartment building, is it worth putting up more units? Why let the land go to waste?
3. Get a better property manager that'll agree to profit sharing. Property managers are masters at finding little ways to increase income. By giving them an incentive in future profits, they are more than willing to get serious at helping increase the bottom line.