Anyone who owns an income property has thought hard about their financial strategy. In order to maximize their rental income and offset the cost of ownership, you’ll need to take a few crucial steps – here are our recommendations.
The first thing to consider is that when you have an apartment, especially if it’s downtown, there are three things you can consider renting out. Most apartments come with a unit where you actually live in, a parking spot, and/or a storage locker.
If you’re the landlord, it’s not a bad idea to split these assets up, because you can typically get more money for the individual pieces.
For example, if you have just the unit, you can rent it out for $1,300 to $1,400 if you’re looking at a one bedroom. Then, the garage can go for another $200 to $300 depending on the location, and lastly, the locker can be rented out for $25 to $75 a month.
So, if you were to add this all up, you’re going to increase your total monthly rental income compared to an “all-in-one” price.
That being said, this approach does require a little bit more management. The timing won’t necessarily be aligned, and the rental contracts for all three components may turn over at different times. But if your main goal is to really maximize the dollar amount that you are earning, this is probably your best bet.
Does your investment property situation look a little different? We have lots of ideas up our sleeve! Reach out to our team and we’ll share some more tailored recommendations for maximizing your rental revenue.