Cash flow from a rental income property is the lifeblood for the owner. If this cash flow is positive and increasing all the time, you can consider yourself as a successful landlord. However, obtaining positive cash flow form a property is not easy and landlords need to find new and innovative ways to make sure that all their expenses are met, and they are able to generate surplus money every month form their rental properties. Here are some important ways to achieve a positive cash flow from a property.
Increasing revenues
One of the easiest ways of increasing your income from a rental income property is to increase the monthly rent every year. However, it is easier said than done as it runs the risk of tenant turnover. You should increase the rent only marginally to make sure that your tenants continue to live inside your property. Another way to increase income is to provide value added services to your tenants. You can start a laundry service, make a gym in the basement, or provide extra storage space in exchange for a charge to earn increased income from your property. These are only suggestions as every property and tenants are unique and only you are the best judge of what services are needed by your tenants.
Lowering your expenses
This is a good way to earn more money from your rental property. Repairs and maintenance of a property are the most common expenses and most landlords find their rental income going to meet them. As a landlord, you must make sure that you are able to save money without compromising with the quality of repairs and upkeep. There are many ways in which you can keep your expenses down during repairs and maintenance. You can use the same color scheme to paint your property to buy the materials in bulk and use the leftover materials later on when needed. The same applies to fixtures and appliances where you can use the same brand to keep your expenses down. You can also lower expenses by utilizing services of same set of vendors and contractors to get materials on a wholesale rate. Also, you need to be alerted to minor repairs and carry them out in time to avoid spending a lot of money on major repair in future.
Looking after your tenants like a guardian
One of the biggest reasons of reduced cash flow is tenant turnover. If your tenants are not satisfied with one or the other aspect of your property, they are likely to move out on a frequent basis. A moving our tenant not only means end of rentals income for some time but also means lots of expenses in making the unit rent ready again. You can prevent tenant turnover by interacting with your tenants and understanding their problems. If your tenants feel they have an understanding and caring landlord, they prefer to stay put rather than try out another landlord in another property.
Another way you can make sure your tenants do not leave your property is to maintain your property in a good condition. You should always respond promptly to requests for repairs form your tenants to show them how much you care for your tenants. Fixing the problems of your tenants makes them feel that they are a part of a big family. You can win the love and respect of your tenants. They will not only stay inside your property for long time periods but also bring more business for you by referring their friends to your property.
Don’t keep your eyes on rent all the time. Positive cash flow is something that you can achieve by being a sensitive and caring landlord also.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
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Palm Coast Property Management
Flagler Beach Property Management
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
