BiggerPockets Real Estate Podcast

Episode: How to Make the Most Money Possible from Your Rental Property

Release Date: October 8, 2025

Hosts: Dave Meyer (A), Henry Washington (B)

Overview

In this episode, Dave Meyer and Henry Washington dive deep into the most effective ways to maximize cash flow from your current rental properties in 2025, without having to acquire new units or take on more tenants and taxes. Through practical strategies, innovative value-add ideas, and candid conversation, they explore how landlords can outperform bigger players and reach financial goals more efficiently.

Key Discussion Points & Insights

1. Shifting Focus: Profit Over Portfolio Size

• Main Point: Owning more doors isn’t always better; the real goal is maximizing the income from what you already own.
  • "You're investing to make more money, not just to have a bigger and bigger door count... your current properties might be leaving income on the table." – Dave (00:05)

2. Boosting Rents Through “Perceived Value” Upgrades

• Idea: Small but thoughtful improvements create an emotional response, letting units command higher rents with minimal investment.

  • Examples:

    • Design accent walls (geometric, colorful)
    • Fancy kitchen backsplashes
    • Curated outdoor spaces (screened patios)
    • Premium finishes (marble/quartz countertops)
    • Organizational drawer/cabinet inserts

  • "People see them and they go, oh, wow, I can have these kinds of amenities without having to own a home." – Henry (03:25)

  • Cost-Benefit: Often $300-$5,000 in upgrades can yield $50-$200+ per month in increased rent, paying for themselves within a year or two.

  • Actionable Tip: Study your comps, see what’s missing, add small differentiators to outshine larger landlords.

3. Adding Unique, Tangible Amenities

• Laundry:
  • Install hookups or provide machines for added rent, but weigh the maintenance costs.
  • Alternative: Rent laundry machines to tenants or partner with service providers for a revenue share.
• Storage:
  • Rent existing garages for $25-$50/month or add inexpensive storage sheds for $100/month.
  • “I could buy these [sheds] for $1,500... rent them for $100 a month. I should just do this all day.” – Dave (10:35)
• Shared Laundry for Small Multi-Families:
  • Convert basements to laundry rooms; use coin-operated or revenue-sharing machines.

4. Adding Capacity: Converting & Splitting Spaces

a) Bedroom/Additions Conversions

• Garage to Bedroom:

  • Conversion cost: $5,000-$12,000; adds $200-$300/month.

  • "That's like a 30% cash on cash return. That's incredible." – Dave (17:43)

  • Most single-car garages are being used for storage, not parking; converting adds livable space.

b) Unit Splits/Accessory Dwelling Units (ADUs)

• Split-Level/House Hacking:

  • Convert basements or split homes into two units (e.g., a 2,800 sq ft house split into two 1,400 sq ft rentals).

  • Dramatic rent increase (e.g., from $3,500 to $5,500/month with $50k in upgrades in Seattle market).

  • “These houses are still expensive, but... the efficiency of your capital, it just makes the money go a whole lot further.” – Dave (20:10)

• ADUs & Parceling:

  • Build and sell/retain ADU as city zoning permits evolve.
  • Example: Seattle ADUs built for $350k, selling for $750k (21:13)
  • Be strategic: requires appropriate lots with access.

5. Management & Operating Strategy Shifts

a) Short-Term & Mid-Term Rentals

• Caveats:
  • Greater expenses and regulatory risk; need for robust market demand.
  • Should earn 2.5x long-term rent to justify the effort and cost (28:05).
  • “You could end up actually getting a negative return... if you're not doing the proper research.” – Henry (31:12)
  • Best results come from cities with strong tourism and limited hotel capacity.

b) Rent by the Room & Co-Living

• Most viable in dense urban or college markets.
• Not worthwhile if total room rents aren’t significantly higher than regular tenancy.
• Warning: Do not alter a property’s structure based solely on current demand; market shifts could leave you with an un-rentable asset.

c) General Philosophy

• View these as management strategies, not investment categories.

  • “I have never thought of myself as any of those things. I think of myself as like a residential rental property investor.” – Dave (32:12)

• Always have multiple operating strategies/exits. Don’t over-specialize unless market supports it long-term.

6. Maximizing Value in Larger Multi-Units (4+ units)

• Complex-wide Amenities:
  • Add gym/workout rooms, lounge spaces, vending machines for essentials (e.g., laundry detergent).
  • Charge modest monthly fees for access (e.g., $10-25/month), boosting Net Operating Income and overall property valuation.
    • “If you could add a vending machine with things that are convenience... that increases your net operating income.” – Henry (36:50)

Notable Quotes & Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 03:25 | Henry | “... you may be priced 50 bucks a month higher than your competition or than the unit next door... just simply because somebody sees something in your unit that elicits an emotional response.” | | 06:33 | Henry | “They look lifeless. They look like no one cares about you, the tenant. They just want a roof over your head.” | | 17:43 | Dave | “That’s like a 30% cash on cash return. That’s incredible.” | | 21:13 | Dave | “Dude, in Seattle there are like 1200 square foot ADUs ... they sell for 750. It's insane.” | | 28:05 | Henry | “My general rule of thumb, at a minimum, it's got to make me two and a half times what I would make as a long term rental for it to make sense.” | | 32:12 | Dave | “I have never thought of myself as any of those things. I think of myself as like a residential rental property investor.” | | 36:50 | Henry | “If you could add a vending machine with things that are convenience... that increases your net operating income, which increases the value.” |

Timestamps for Key Segments

• 00:00 – Introduction and main thesis
• 02:10 – Emotional and perceived value upgrades
• 06:04 – How to price and benchmark upgrades against the local market
• 08:27 – ROI of upgrades vs. property acquisition
• 09:54 – Adding storage, laundry amenities
• 15:45 – Increasing income by adding capacity (bedrooms, units, ADUs)
• 27:44 – Strategic operating shifts: Short/Mid-term, co-living
• 35:46 – Value-add strategies for small apartments/complexes

Takeaways for Property Owners

• Focus first on your current portfolio; incremental improvements count.
• Small, design-minded upgrades dramatically improve renter demand and rents.
• Evaluate your property’s unique amenity/expansion potential against comps.
• Run the math – prioritize investments that pay back in 1-3 years via rent bumps.
• Match management style (STR, MTR, co-living) to local demand and regulations; don’t force a model that doesn’t fit.
• Think innovatively about shared amenities in multi-family properties to drive income and NOI—even modest fees matter.
• Above all, be flexible, research-centric, and willing to adapt operating strategies as market conditions change.

Summary prepared for listeners who want actionable strategies to boost rental property profits without portfolio bloat, straight from two seasoned investors.