Hidden Income Opportunities: Part 1

Written by Marc on March 19th, 2007

When you are out looking at rental properties, be sure to look for hidden income opportunities that would make a good investment a great one.  Some examples of these hidden gems are below.

  1. Garage

    Most people assume that when they rent a house, the garage is part of the deal.  What you should really be considering is renting the garage as a separate unit.  Typically a garage can rent for $50 or more.  Many people use garage rentals as a place to store vehicles in the winter, storage (as it is usually cheaper than self storage), a place to store their boat, etc.  If you want to make sure that you have it rented all the time, get your tenant to sign a one-year lease, and make sure it expires in the winter.  Don’t forget to charge your tenant a damage deposit for the garage as well.

  2. Large back yard

    If your property has a large backyard, and it is close to a school or area with little street parking, consider renting out parking spots.  These parking spots you rent out can be more profitable than renting out a garage.  If the winters are cold, consider charging extra for electrified parking stalls.  Be sure to explain to your tenants living in the house that their backyard is for parking and either assign them a parking stall, or do not allow them to park in the backyard.

  3. Large basement

    If the basement of the house is large enough and has a separate entrance, consider adding a suite to the basement.  For the small investment in renovations to make the suite legal, you can get very good return on your investment.  You should work out some agreement between your tenant upstairs and your tenant downstairs regarding the laundry (if you offer it) arrangements, and how the utilities are split.  Be sure to setup your new suite as a legal suite to avoid potential problems with the property later on.

Try out these ideas to make your rental property a goldmine.  We will look at some other ideas in Part 2 of Hidden Income Opportunities.

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