Although you should keep up with market rents and be mindful of what your market demands, raising rents and decreasing expenses aren't the only way to improve the bottom line. Many landlords overlook opportunities that can both generate more revenue and improve tenant satisfaction. These strategies often lower turnover because they add convenience or value for the people living in your buildings. Generally speaking they involve spaces of the building that people completely overlook, the basement, the attic, the parking lot.
Here are a few proven ways to increase income without raising base rent:
1. Coin-Operated or Smart Laundry Machines
Adding shared laundry facilities can easily generate hundreds of dollars a month in extra revenue. Families especially appreciate the convenience of on-site laundry, which means lower vacancy rates and longer tenancies.
- Tip: Upgrade to smart-pay machines (card or app-based) to reduce hassle and theft risk.
- Bonus : Sometimes you won't have space anywhere other than the basement but if you can find a place close to the units in a common area that's even better. Don't forget to think about plumbing, venting and making sure you have enough electrical service!
2. Parking Upgrades and Assignments
Parking is often underutilized — or given away for free. By striping and numbering spaces, you create order and give tenants the option to pay for additional spots.
- First spot: Keep it included in the rent to avoid friction.
- Extra spots: Charge a reasonable monthly fee, especially valuable in areas where street parking is limited.
- Winter parking bans: In New England, reliable off-street parking during snow season is worth real money to tenants.
3. Storage Units in Basements or Garages
Unused basement or garage space can be transformed into lockable storage cages or small rooms. Tenants with bikes, seasonal gear, or kids’ items will gladly pay for the convenience.
- Build simple wire or wood partitions to keep costs low.
- Price per month: Even $50-$100 per storage unit adds up across a building. Especially since maintenance of storage units is generally almost zero.
4. Pet Rent and Pet Fees
Pet owners are often willing to pay more for the privilege of keeping their furry family members.
- Pet rent: A small monthly fee ($50–$75 per pet) adds recurring revenue.
- Upside: Pet-friendly units rent faster and appeal to a larger pool of tenants.
- Tip : Check with your insurance carrier if they have breed or size restrictions on dogs. Most of them are ok with dogs but have a limit on size.
5. Utility Bill-Backs
If you’re covering utilities in a multifamily property, consider implementing a ratio utility billing system (RUBS). Tenants pay their fair share of water, sewer, or heat, which lowers your expenses and increases NOI.
- Key: Be transparent in the lease and comply with state/local laws.
- Result: Tenants become more mindful of usage, lowering costs overall.
Why This Works
Each of these strategies improves the tenant experience while adding incremental revenue. Unlike across-the-board rent increases, these are “opt-in” — tenants only pay for the amenities they value. Make sure you explain that this is an attempt to reduce the amount you have to raise rents across the board.
