21 Additional Property Management Revenue Streams

Today we wanted to share 21 additional revenue streams that we see used by property management companies across the nation. We can help implement and manage these ideas.

Top 21 Income Streams

1. 1App Fees — If you are not using the AppFolio Application, get that set up immediately. Firms typically charge $35–$100 per applicant.

1. 1Admin Fees — Charged to tenants and homeowners for lease renewals, project management, evictions, etc. Used for anything outside normal operating procedures.

1. 1Parking/Garage — Monetize garage space as an additional rentable item or a separate unit under the property structure.

1. 1Pet Rent — Charge additional rent determined by number of pets, weight, etc. Firms often take 50–100% of pet rent and fees.

1. 1Security Deposit Interest — In some states you may hold deposits in an interest-bearing escrow account. At move out, charge an admin fee ($60–$100) to account for and pay out interest earned.

1. 1Redecoration Fees — Charge a $300–$500 "easy move out" package at move-in covering basic cleaning and painting.

1. 1Trash (Valet Trash) — Install bins near unit doors. Charge $20–$30/month for doorstep trash pickup. One of the potentially largest money makers.

1. 1Storage — Rent storage units and garages separately. Some of the best investment returns come from storage.

1. 1Water — Sub-meter each unit and bill individually plus a service charge, or flat-rate tenants with budget forecasting.

1. 1Furniture Rental — Works well in higher-income areas.

1. 1Cable/Internet — Negotiate a "Bulk Services" deal with your local provider. Wrap services into rent for higher rental rates.

1. 1Gas — Sub-meter and charge per unit, or charge a service fee.

1. 1Electricity — Bring the fee in-house and charge tenants directly for increased cash flow.

1. 1Corporate Usage Fees — Useful for corporate housing with high tenant turnover.

1. 1Washer/Dryer — Provide washers and dryers for a fee. Companies will install and service systems in exchange for a percentage of monthly income.

1. 1Pest Control — Bill a monthly fee to all tenants. Both a money maker and protection policy.

1. 1Short Term Lease — Always charge more for shorter lease terms.

1. 1Misc. Property Amenities — Monetize premium amenities like VIP parking spots ($20/month extra).

1. 1Early Termination — This fee typically goes to the owner at move out.

1. 1Damage Fee — Develop a pricing sheet for typical move-out costs, signed by the tenant at lease signing.

1. 1AC Filters — In warmer climates, order and deliver filters directly to tenants for $15–$20/month.

Additional Insights

• RUBS — Some firms don't prefer RUBS as residents dislike the utility breakdown. Switching to submetering and lowering rent to mitigate complaints is a common alternative.
• Fees vs. Upgrades — Higher-end PM companies focus on opt-in upgrades, while others derive ancillary income from punitive fees.
• Renter's Insurance Lapses — Some PMs charge $50/month if a resident lets their renter's insurance lapse.
• Unit Upgrade Income — Provide upgrades to a unit for a charge, then charge subsequent residents for those upgrades.