One of the best forms of passive income is the classic rental property. If you own a rental property, you can easily use it to pay off the mortgage, clear any other debt and build wealth. One of the amazing parts of owning a rental is that you can figure out a few ways to a lot of consistent money. People have been making money from rental properties for ages and this type of income is very doable for anyone with a property.

1. Target Marketing

It’s really important to become crystal clear on who you’d like to rent to. Try to create a picture of your ideal tenant in your head. If you own a single family home in an area with an elementary school nearby, you might want to envision renting your home to a family with small children. This isn’t to say that you won’t rent to whoever can afford it. However, when you place an ad on different rental sites, an elementary school within walking distance will definitely be attractive to a family with young children. If you own a condo in a swanky high-rise, you might want to consider the amenities and nearby places to shop. This lifestyle will be more attractive to a couple with no children or a single person. Try to get into the mind of the person you’d like to rent to and figure out what would attract them the most. Write these elements down and include them in the rental description for the various ads you produce. It’s also wise to be realistic about what you own and who would want to rent it. For example, if you own a home in a low-income neighborhood, chances are that you’ll have a difficult time finding someone who is incredibly wealthy that would want to rent the space. Is it impossible? No. Is it unlikely? Yes.

2. Upgraded Interiors

In a lot of rented spaces, there are certain amenities and qualities that have become standard. A lot of people like the look of granite countertops. Granite is definitely in style and will be that way for a while. The same thing goes for stainless steel appliances. When people decide to rent a property, aesthetics play a role. People want to live in a space that’s attractive. Knowing this, it would be wise to stay on top of the trends within home decor. Check out various shelter blogs and magazines to know what the next trends are. It’s also good to watch different television shows that focus on home remodeling, upkeep, and property development. These sources will keep your creative juices flowing and you’ll be able to draw inspiration for your own property.

3. Multiple Streams of Income

It might seem hard to understand how you can receive multiple streams of income from one renter or a rental property. When you’re working on making money from rental properties, it’s important to get a little creative. The multiple streams of income can flow in more than one way. First, you can charge for the convenience of having a washer and dryer installed in the home. You can either use coin-operated machines or charge a rental fee through the rent. If you’re doing a dormitory-style rental option, you can include a cleaning fee in each person’s rent. Find a cleaning service or even one maid that you can pay bi-weekly for cleaning services. Make sure to negotiate a price that leaves you with extra cash to spare. For example, if a maid charges $100 to clean the common areas of the house on a bi-weekly basis and there are four tenants, include an additional $60 per tenant. At the end of the month, the maid would receive $200 and you’d be able to collect an extra $40 per month. At the end of a year lease, it would add up to an extra $480. This strategy can be done with lawn services, cleaning services and more. The key is to make sure you get the lowest rate possible for the service so that you can collect the difference and create an income stream.

4. Rental Rooms

Another feasible way to approach making money from rental properties involves housing multiple tenants in one house. Think of a dormitory and how multiple students share the common areas, but rent a private bedroom. This is a great way for people to keep their housing expenses low. However, it’s still an excellent way to cash in. You might want to start by contacting a property management company in Morton Grove. Property managers in Morton Grove may be able to adequately walk you through the proper protocol on how to really profit. They’re also helpful because they can manage your property for you. When you’re dealing with a lot of different renters and personalities, it’s nice to hand off that extra work to someone who’s an expert at managing people and their properties. Property managers in Morton Grove could also give you a good understanding of how much rooms are renting for in the area. Remember that you’ll want to keep your prices competitive yet fair.

5. Temporary Rentals

With sites like popping up all over, these new-age alternative forms of housing are giving hotels some major competition. Your rental property can become a part of the movement. Spruce up the home to make it look like a hotel. When you have all the amenities a guest could ask for but at a better price, people will naturally want to choose your rental. Make sure to get professional pictures taken and include a lot of natural light. In addition to the rental fee for the overnight stay, make sure to include a fee for clean-up and maintenance.

With rental properties, there will be times you’ll need to put in a little sweat equity. In this case, wash and bleach towels, washcloths, and sheets after the guests have used them. Sweep, mop and clean the area thoroughly. In this case, you can pocket the cleaning fee and use it as an additional source of income. It’ll be a lot cheaper for you to clean than it would be for someone else since you’ll just be paying for inexpensive cleaning supplies. As a property owner, you might find that there are times when things don’t go the way you’d want them to. As long as you keep a level head and utilize the help of professionals like property managers and maintenance services, you’ll be able to be an excellent landlord with properties that are overflowing with money.