If you’re looking to learn more about income other than rent on rental properties, then check out our Ultimate Guide to Other Income on Rental Properties.
Some common examples include:
- On-site laundry
- Pet rent
- Storage unit rent
- Garage unit rent
- RV parking rent
- Upgrade rent (fee for installing something that you wouldn’t have otherwise installed on a property upon the request of the tenant)
- Utilities bill-back
- Pool/club house access
How to Increase Income on Rental Properties
While the following video is not exclusively about how to increase other income on rental properties, it does discuss other income and ideas on how to improve cash flow.
Calculating Gross Potential Income
Knowing other income you’re receiving on a rental property is critical to calculate Gross Potential Income.
Annual Gross Potential Income
|+||Annual Other Income||+||$0|
|Annual Gross Potential Income||=||$27,720|
Gross Potential Income is how much total income the property could possibly produce from all sources.
For Typical 25% Down Payment Gainesville, Florida Rental Property we take the total amount of rent they could collect and any additional income they might also get from the property.
The rent for Typical 25% Down Payment Gainesville, Florida Rental Property is estimated to be $2,310 per month or $27,720 per year. We'll use the annual amount of $27,720 for our calculation and we will, for now, ignore vacancies... we'll deal with vacancy when calculating Gross Operating Income.
We're estimating $0 in other income from the property.
Some common examples of other income might be: profits from on-site laundry (especially in multi-family), pet rent, renting out extra spaces on the property (like an extra garage or storage unit) or things like that.
That means that Typical 25% Down Payment Gainesville, Florida Rental Property has a Gross Potential Income of $27,720 per year.
And, you’ll need the Gross Potential Income to calculate Gross Operating Income, Cash on Cash Return on Investment, Cap Rate and more.
Other Income Primary is considered a primary input in the Hierarchy of Real Estate Metrics.
It is used to directly calculate Gross Potential Income Secondary.