If you manage your rental property effectively, you can easily earn enough income to cover your expenses and more to set aside. But you shouldn't limit yourself just because you have a positive cash flow. There are several profitable rental business ideas you can add in-house and cater to your tenants' needs at the same time.
Key Highlights:
- Evaluating feasibility is essential before adding new income streams. Budget, time, tenant demand, property type, and available space all determine whether a business idea will work.
- Service-based add-ons like cleaning, pet care, appliance repair, trash collection, clinics, and pest control can boost profits while offering convenience to tenants.
- Equipment rentals such as bikes, e-bikes, or power tools give tenants practical, on-demand solutions and create consistent extra revenue.
- Product-based ventures like vending machines and food trucks provide easy-access food options and require minimal tenant effort.
- When aligned with tenant needs and property capacity, these in-house business ideas can significantly increase rental income without disrupting daily operations.
Before You Think of Profitable Rental Business Ideas
Adding another income stream to your real estate investment sounds like a great way to maximize returns, but there are many factors to consider to determine its feasibility.
- Do you have the budget? Some ventures only require minimal investment, while others will take more. You might waste your initial investment if you don't end up finishing what you started due to a lack of a budgeting plan.
- Do you have the time? Property management is already a handful, and without help, you could neglect your small business or fail to accommodate tenants.
- What is your rental property type? If you have a single-family home, it won't make much sense to establish a small shop, since you technically only have one tenant.
- Do your tenants need it? Property owners need to assess which paid amenities or services would attract tenants by considering who the target market is. (ex. College students would appreciate a coffee kiosk.
- Does your rental property have the space? If you intend to build a small shop or install machines, make sure that there's enough space in the property without becoming an obstacle in the environment. Calculate how much space you have first before committing to an investment.
Services
Cleaning Services
Busy tenants don't have the time to clean their rental unit at times, which can become a problem over time. You can offer cleaning services for a price, although make sure you have a scheduling system set up to prevent coordination mishaps. Tenants will likely prefer an in-house service since it's more accessible.
Pet Washing and Walking
Tenants love their pets and are willing to pay for services that would make them happy and healthy. You can provide services for dog walking and washing, but limit the type and species to avoid any incidents. This will also require you to install a pet washing station, as well as hire a dog walker if you can't do it yourself.
Appliance Repair
Landlord-provided maintenance services for repair issues are typically limited to amenities that come with the rental property. Offering repair services for their personal items is the kind of convenience renters are willing to pay for. You can either hire your own professional or outsource the service and focus on property management.
Trash Collection
If you have a multi-unit property, the garbage disposal will likely be more distant than most renters. This is a service that can apply to any rental property type, which makes it a good opportunity for an additional revenue stream.
Clinic
While it might be uncommon, setting up a clinic can also be a lucrative investment. You will have to invest in the necessary medical equipment, as well as review the national, state, and local regulations for providing medical care.
Pest Control
Even with renters' or property insurance, as well as potential consequences outlined in the lease agreement, tenants don't want pests in their rental property. You could offer pest control services for faster action, seeing as it's in-house. Research the equipment rentals needed for eliminating pests, or retain a network of reliable services for quick responses.
Equipment Rentals
Bike Rentals
Traditional bike or e-bike rentals can serve as a great convenience for tenants when your property is in the metro area. Tenants can use it for short trips instead of using public transportation. You will also have to invest in locks and other security measures to keep your rental assets from being stolen.
Power Tools
You can collect construction tools like drills, hammers, saws, and other equipment that DIY enthusiast tenants can rent, should they want to install shelves, repair furniture, fix plumbing leaks, or make changes in the rental unit (if allowed). Some might even want to do fixes themselves to avoid costly repairs.
Products
Vending Machines
Property owners can install vending machines that can dispense snacks or drinks. This is a cheaper option instead of heading out to satisfy their cravings or ordering online. Vending machines are pretty common in properties in the rental industry. Just make sure to conduct regular maintenance to make sure they always work as intended.
Food Trucks
Almost similar to vending machines, food trucks will be serving fresher food. However, it will not be accessible 24/7. This also won't require extra space in your rental property, unlike many businesses where service or production equipment takes a lot of space. You don't even have to purchase new vehicles. You can buy used ones from RV rental businesses and convert them into food trucks.
Additional Rental Property Business FAQs
What are the other advantages of having in-house businesses in my rental property?
- Apart from the added profit as the business grows, it will also help you attract quality tenants. Many landlords stick to basic amenities. Unique rental items, products, and services will give you an edge in the rental market.
Is it harder to handle several businesses by myself?
- Yes, but it's always better to hire a third party. Rental businesses quickly decline when one aspect of property management is neglected, which can impact your rental income. There may also be additional maintenance requests, given that breakdowns can be expected with machines and equipment.
How to ensure the success of my additional investments?
- If you have your hands full with your rental business, you can hire a property management service to share your workload with. You should also outline rules in your lease agreement stating consequences for breaking equipment or abusing services.
How a Property Management Company Can Help Your Rental Business
In-house businesses can be a good source of additional revenue, but you must remember what your main source of income is. With a property manager, marketing campaigns will reach your target audience, tenant screening will be comprehensive to find qualified tenants. The lease or rental agreement will be enforced, and proper maintenance will be conducted.
In this regard, Blue Line Property Management can help you out. With us keeping an eye on your daily operations, you can explore profitable side hustles and achieve high profit margins.
Contact us now, and let's make some arrangements.
