Open discussion about creative ways to generate additional income on top of rent for your properties.
Has anybody offered a technology package? It could consist of a Roomba and (2) Alexa speakers, as an additional source of income? Assuming a budget of $500 to purchase the three devices, you could create a separate lease agreement of $25 per month for these. It'd generate $300/year, making your money back within 2-years. And it's protected by the security deposit as well.
One of my properties is near a large university. We have a pool table which really helps sell the place to college guys. We include it in the house but we could offer it as an add-on.
Truth is you could lease a lot of different add-on's: BBQ, pool table, TV's, etc.
Has anybody had any luck with this approach?
The ultimate 'add on' is a fully furnished rental. This is done all the time through airbnb and similar sites. Most landlords are not looking for the hassle of dealing with personal property.
I rent out a high rise condo I own across the street from Sun Devil stadium fully furnished and collect about $900 per month more than I could unfurnished. Since the furniture and furnishings cost me $38,000, and I am in the fifth lease year, I have theoretically collected or will collect $54,000 on my $38,000 investment, plus residual value. Assuming residual value to be $5000, we have a $21,000 return on a $38,000 investment - over 5 years, or about 11% annual. Of course this was all accidental as I furnished the place because for 3 years it was my personal residence.
As a final note, many REITs, in both the multi family residential space, as well as office, provide add on services to increase ROI. An investor would need to see if the extra return justifies the extra time and risk when deciding whether to engage in this activity.