Every rental business aims to generate revenue. Typically, this revenue comes from rent payments. However, rent is not the only viable way to make a profit.
If you’re looking to accrue a little extra revenue, you might consider adding secondary revenue streams. Some examples of additional revenue streams include cleaning services, TV packages, subletting, corporate housing, or other ways of monetizing your resources.
Property management software is designed to manage rent, but it can also help you with additional revenue streams. Software is a flexible tool you can use to accommodate the ways your business grows and changes over time.
Below are three examples of revenue streams and the ways in which property management software helps you manage them.
Cleaning services are a strong selling point for many tenants. If you manage large units or university housing, the tenants interested in these spaces might be especially inclined to sign a lease with included cleaning.
To add cleaning services as a revenue stream, you’ll need to locate a reputable cleaning service provider, contract out the work, and decide on the frequency and price of cleaning.
Next, you need a way to collect payments. Here’s where property management software comes into play. Instead of receiving separate checks for cleaning, software allows you to include cleaning packages in lease agreements. Alternatively, if your tenants have already signed their leases, you can write an addendum for cleaning services.
In both cases, sharing the additional information is as quick as entering tenant emails and signing digitally.
Bonus: Regular cleaning also helps you maintain your properties for future showings or virtual tours. You’ll also save on the costs of major cleaning involved in turning over a unit. Tenants might let dust build up or leave stains to become permanent, but if you’re in charge of cleaning, you know your units are in top shape.
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Offering satellite TV is another opportunity to generate extra revenue. Although streaming services are increasingly popular, many tenants will prefer their traditional TV programming. In these cases, offering satellite TV packages is an excellent lease upgrade.
TV providers like Spectrum, AT&T, Dish, and others frequently offer package discounts. Be sure to look into these if you plan on adding satellite TV to multiple units.
Once you’ve selected your TV provider, installed the hardware, and advertised the new amenity, extra payments can be collected just like those for cleaning services. Once again, property management software can do most of the hard work for you. Either add the new clause to an original lease or write a separate addendum for it.
Adding this revenue stream involves renting out your fully furnished units to businesses. Those businesses then use the space to put up their employees who are travelling for work. Unlike traditional renting, corporate housing agreements typically require you to provide all the furnishings and include utilities in the bill.
If your properties are located near business parks or public areas, corporate housing could be a promising revenue avenue. However, there is significant preparation associated with converting properties for corporate housing, including furnishing, manipulating leases, and marketing your units.
After deciding to convert a unit to corporate housing, you’ll need to redesign your advertising and marketing strategies. Property management software is advantageous in this process. For instance, many software platforms offer listing syndication, a feature enabling multiple simultaneous posts on separate listing sites.
While you won’t have tenants directly under your management, you’ll still receive rent payments from participating businesses. This means you’ll need to modify your current lease for that unit on the software.
Browse existing templates for corporate housing leases or start from scratch. Property management software is adaptable to either option.
Increase Profit with Revenue Streams
Profiting with your rental business isn’t always dependent on rent. Increasing rent can scare away applicants and risk tenant turnover when it comes time to renew leases. Revenue streams are a resourceful way to boost revenue in circumstances when increasing rent isn’t feasible.
As always, property management software is your partner in this endeavor. Armed with software tools, your business can profit in as many different ways as you can imagine.