Do you own a duplex or multifamily rental? If so, have you considered creating an experimental rental unit?
That’s where you operate one apartment differently than the others.
This gives you the freedom to test out more profitable ways to operate your rental.
How awesome would you feel if your experiment generated an additional $200 – $500 each month? Wouldn’t that know-how change your entire life as an investor?
It would be HUGE! You’d probably expand on your success right?
The Experimental Rental Unit Challenge
There are at least five different ways to operate your rental house or apartment unit.
In order of least to most profitability, the operational models are:
1. Traditional Landlord – Least Profitable
2. Private Dormitory
3. Rooming House
4. Short Stay Housing
5. Corporate Housing – Most Profitable
You already know the traditional landlord path, how about trying a more profitable one?
My challenge is to create more corporate housing units at my 8-plex. Will you accept the challenge as well?
Evolve as a Wealth Creator
Technically, you could drive a plane across country but why do so – it was meant to be flown. Operating at a fraction of your potential would be silly right?!
Well that’s what I see too many landlords doing.
By creating an experimental unit, you’ll give yourself the mental freedom to discover more of your profit potential. You’ll give yourself the grace needed to do something poorly until you’ve mastered it. It will help you overcome the paralyzing self-doubt that keeps us from our full potential.
To help you take action, here’s a quick tutorial on four ways you can explore your rental’s profit potential:
1: A private dormitory
1 – Think which trade schools, law or medical schools are close to your rental?
2 – Which school can you network into? Who do you know that works there?
3 – Find out how much students can afford and plan on charging the maximum.
4 – Arrange to help students cooperate so they can get more than they could otherwise afford.
2: A Small Rooming House
1 – Talk with a parole officer about what is needed.
2 – Determine if your neighborhood could tolerate the clientele. If you’re in a remote location, connected to transit, then you may have a strong proposition.
3 – Coordinate with social services to see your funding sources and opportunities.
3: Short Stay Housing
1 – Go to www.airbnb.com.
2 – Type in the city which you hold rentals.
3 – Pick a week long stay like: January 1 through 7th
4 – Then look at the map of listings. What’s going on around your rentals? What do you think your experimental unit could be priced at per night?
5 – Multiply your nightly rate estimate by 15 to estimate what your experimental unit could fetch if rented 50% of the time.
6 – Think about the difference between your current rent and potential Airbnb monthly income. Does it look interesting?
Check out my eCourse: Airbnb for Landlord
4: Corporate Housing
1 – Check out Corporate Housing by Owner – www.corporatehousingbyowner.com
2 – Check out the competition.
3 – Consider starting with Airbnb and then transitioning into corporate housing.
Tell Me About It
Creating an experimental rental unit can be fun but a bit scary as well. If you’re up for the challenge, then leave a comment below. Let’s encourage each other.
Check out some of my articles for more information from Leading Landlord such as Making Money on Airbnb, The Overwhelming Benefits of Airbnb Long Term Rentals, and Airbnb Landlord Tips.
Interesting ideas, Al. Thanks. But before implementing any of them, landlords might check with their local municipality regarding zoning regulations. They might have to install additional exits, provide more parking spaces, or make accommodations for handicapped residents. Failure to do so could result in hefty daily fines.
There could be tax implications, too. For instance here in Palm Beach County, Florida, renting for six months or less means collecting a Tourist Development Tax.
Author, What You Must Know BEFORE Becoming a Greedy Landlord. How to build a portfolio of investment properties for an income that lasts a lifetime.
I agree George. Got to work on the up and up. I keep it one person per room. I’d be working outside Sacramento zoning laws if I did otherwise. Also, I rent bicycles so parking is never an issue.