Additional Rental Revenue Streams

[Jim Shepard]

All,

About 2 years ago I started taking what I call the "Cafeteria" approach to my rentals.  I was trying to come up with additional revenue streams to increase my potential profit on a unit.  A few examples of this would be:  $25 per month per pet for pet rent plus an additional $275 per pet security deposit.  I also now charge $25 per month if the tenant wants a refrigerator.  Half of my tenants already have a refrigerator and don't need it.  Its one less appliance that I have to repair!  I have thought about a washer & dryer for $30 - 35 per month.  Although I'm not sure about that because I know how much they get abused.  Recently I added in my lease an extra $75 per month if the tenant wants to go to month to month.  I'm game for an extra $900 a year.  One tenant has been looking for a house for 7 months now.  $525 extra for Jim...I love the smell of cash in the morning!

We have all had the tenant that comes to us 10 months into a 12 month lease that wants out for whatever reason.  I came up with a $500 "break the lease fee" plus reasonable advertising cost.  They are still responsible for the rent until it is rented.  I am thinking I want to change this amount to $1000 though.

I use to be the sucker paying for the carpets to be cleaned at each turnover.  I now require my tenants to have a professional carpet cleaning company come in after they have moved out and clean the carpet.  They then have to provide me with the paid receipt.  No, they can't do it themselves with a rug doctor!

All of these extras are spelled out in the lease agreement that they sign.  No one has blinked an eye.  BPers, what do you think?  Does anyone else have other revenue streams that they would like to share with the rest of the community?

[JD Martin]

I think it depends on your market. Nickle and diming tenants around here will get you high turnover or worse tenants. I'd rather have good, long term tenants than an extra $25 per month from the tenant. Maybe your rental market is so tight you can get away with some of those strategies. I live in a tight market but the best tenants are still going to have the pick of places, and all things being equal charging extra for every thing under the sun will cost.