A real estate property is a valuable investment asset and has a great potential to generate income. One of the biggest advantages of real estate is that given the circumstances, it appreciates with time and its property value increases. Management efforts to make the property more desirable and appealing can also add to its value and accordingly enhance its ability to generate revenue from monthly rents.
However, unlike other business enterprises where marketing campaigns and other business strategies can significantly boost their revenue over a short period of time, real estate does not have the ability to increase its revenue generation using such marketing strategies. So, while they provide stability and security, their revenue generation maxes out until it is reset by external economic factors. In other words, they have a limited channel and capacity for generating income. But that is until smart property owners thought of generating additional income by providing services in their property and taking shares of the profit. Today, by choosing the right ancillary revenue streams, real estate owners can add value to their property and increase their channels of income. This article will present three brilliant ideas that can significantly increase ancillary income of a property.
Recycle Bins For Apparels
As people become increasingly aware of the need to conserve resources, many have picked up a genuine desire to contribute towards bringing a much-needed change. A clothes donation drop box is where people can donate new or used clothes they have stopped wearing. These donated clothes get recycled and worn for as long as whatever life is left of them, preventing them from ending up in landfills. Capitalizing on this growing popular trend, for property owners, turning a commercial or residential property into a donation bin location can help to generate a significant amount of ancillary income.
Automated Teller Machines
Whether it’s in a commercial establishment or a residential area, the convenience of easily withdrawing cash provided by automated teller machines (ATM) is always much appreciated by users. Having an ATM in the vicinity of a property saves shoppers and residents the need to find another booth in the event that they don’t have enough or have forgotten to take cash along with them. On the part of the property owner, having an ATM installed within the property is a great way to earn ancillary income from shares of the provider bank.
People like to enjoy the convenience offered by services that make life easier and simple. Whether at home, work, or out shopping, a premium service such as an internet connection or cellular communication that allow people to entertain themselves or stay connected with friends and family make their experience better. By introducing and providing such additional services in an establishment, it increases the perceived value of the place for the people inside, provides a great opportunity for the service provider to expand and conduct business, and enables the property owner to make money off of it.
While real estate may not have the scalability of other business enterprises when it comes to generating revenue, it has great potential to earn ancillary revenue with the right choice of provided service or entertainment. The ideas mentioned above have been used by numerous property owners to increase their overall revenue generation, but those only scrape the surface of the multiple possibilities that can be utilized to earn ancillary income.
If you’re interested in implementing this business strategy, Eminent Property Management can manage your property and maximize its potential for generating revenue by identifying the best ancillary income streams.