Creating Multiple Income Streams With Real Estate Investments

Creating Multiple Income Streams With Real Estate Investments

by Hunter Craig

When it comes to real estate investing, rental properties offer the potential to create additional streams of income. For example, while a property appreciates in value, your rental income will cover the monthly mortgage payments and maintenance expenses and maybe even leave a little left over for profit. However, rental and investment properties offer even more opportunities for multiple income streams. Keep reading to learn how.
Parking Fees

Charging for parking spots may seem like a nominal source of income, maybe even just $20 per month per tenant, but spread over three tenants and twelve months, that's $720 in totally passive income. And depending whether the general locale is tough to find parking spots, many residents would consider that fee a bargain.

Storage Costs

If your rental property comes with storage space or units, consider charging an additional fee to tenants for their use. While offering storage space for free can be a great way to entice potential tenants during a soft rental market, you can also earn income on them during a landlord's market.

Laundry

While laundry is a drain on your utility bills and will cost you in the initial investment of purchasing coin-operated laundry equipment, you can turn it into a passive form of income.

There are many laundry facility rental companies that will install and maintain coin-operated laundry equipment while you simply sit back and collect a percentage of the proceeds. In turn, you're responsible for the utility payments, but free to keep the remainder.

Internet Services

With the ease of installing internal network wiring or even wireless networks, providing Internet access to your tenants is now easier than ever. Whether you incorporate the cost into the rent or charge an additional fee, this extra service is a great potential income source.

Tenant's Insurance

As the owner of a larger rental building, you may be eligible to purchase tenant's insurance on a group basis, and therefore a discount. This means, you can then either sell that insurance to your tenants at a profit or direct your tenants to your building's preferred tenant's insurance company and collect a commission on every sale.

Utilize Unused Space

If your property has an unused outbuilding or communal or hall space, consider renting it out to a number of tenants. For example, one apartment building had an empty and unused outbuilding. It soon became an artist's studio for several local craftspeople and earned the landlord an extra $600 a month in rental income.