Some investors like to diversify once their property management portfolio becomes robust enough to support other income streams.
Managers of apartment complexes or dense areas of rentals can augment their business by opening or purchasing a side business that caters to the needs of renters, either onsite or in a nearby location. Read on for a few examples that work well.
Vending machine management
Owning vending machines near a popular outdoor location (like a basketball court or near a lobby entrance) can present a lucrative side business that requires little maintenance.
Upkeep and restocking is much easier for your property management staff, since they are already onsite. Compare this to a typical vending machine route, where the operator must drive to several different locations.
Vending machines have been undergoing a quiet revolution, with several hot food options like pizza and burritos available. So these can even fill a necessary gap in a location that has few fast food restaurants. Ice cream and energy drinks are popular fare as well.
Plus, having a wide range of food and drink available in one spot increases the likelihood of steady foot traffic.
While having a washer and dryer in-unit is desirable to renters, a laundromat is still vital for tenants who don’t have their own appliances or whose appliances have broken down. The repair process can take over a week depending on parts needed, and delivery and installation of a new machine can take just as long.
Even for renters who have their own appliances, sometimes a laundromat is needed to quickly handle multiple loads of laundry in an afternoon, rather than spreading the job out over a few days. And laundromats typically have oversized load machines that can easily handle comforters and bulky items.
These are all draws that make a full laundromat appealing. Including vending machines at your laundromat is a great way to capitalize on foot traffic that has already entered your establishment.
Depending on placement, ample parking, and ease of entrance and exit, a coffee shop has a lot to offer in a densely rented area. In addition to the café’s offerings, many provide a pleasant outdoor seating area for friends and family to gather.
Freelancers and students enjoy being able to work on free Wi-Fi in a relaxed setting. Having a coffee shop next to your laundromat also potentially captures the same foot traffic and adds to the convenience of services you offer.
One thing many renters lament is the lack of space to wash their cars in an apartment building, and without a garage or with limited storage space, few renters keep all the necessary items for a thorough car wash.
If you can install an automatic version or a self-wash, this is a relatively low-maintenance business that will bring in constant customers. Additionally, you can provide discounts or coupons to entice potential renters right from the time of rental application.
Dog washes are becoming more popular as dog owners seek easier methods for bathing their dogs. But find paying a groomer regularly to be too expensive. Some larger dogs have difficulty getting in and out of standard bathtubs, and some owners have back problems that make it difficult to bend down for enough time to thoroughly bathe their pets.
The platforms and hose attachments at a dog wash make bathing much easier for both pet and owner, and dog vending machines offering everything from shampoo to treats can bring in more revenue. If you have the acreage, pairing this with a dog park is a perfect way to ensure your dog wash gets regular traffic.
Creating multiple offerings in a dense location can make your set of businesses a regular hub for renters and nearby homeowners alike, which can also enable you to bring more jobs to your community. You can use a variety of cloud-based services to keep your administrative overhead low, including asset management software, accounting services, and payroll options.