Increase Your Cash Flow With These 9 Easy Tips
If you are running a rental portfolio, keeping a steady cash flow is extremely important. Even if you are very successful and are making good profits, don’t become too relaxed as even the best rentals can be faced with cash flow problems if they don’t handle their operations efficiently.
But first, if you would like to learn how updating, refinancing, and reworking your mortgage can help you increase your monthly rental profits, let us help you. All you need to do to get started is click the link below to book a free strategy call with our team at LendCity and we will show you the options that are available to you.
Here are a few tips to increase cash flow:
Extra Space
Many landlords have extra space in their properties, an unfinished basement, a garage etc. We recommend you try to finish your basement with another apartment or even an extension of the main floor. By adding additional living space, you can get more rental income. Many investors have garages that they include in the regular house lease, but don’t! We recommend you keep the garage separate so you can rent it out as storage to an additional person.
Or, if you want to keep the garage bundled with the home, you can fix it up in order to make the garage multi-use. After all, many people like to use their garage as a workshop or even a semi-outdoor social space throughout the year.
Parking
Not even the landlord can charge rent for parking, but depending on your property and its location, you can certainly charge your tenant or someone else for a parking spot. As well, sometimes if the property is located in front of an alleyway, it may be possible to legally add a parking spot to the back of the property. So, you should make sure you take the time to talk to local authorities to see if that option applies to you.
Supply High-Speed Internet
This tip is especially helpful if you have a multi-unit property. You can charge $75 or more per month and say your lease includes unlimited internet. Unlimited internet packages start around $70-100, so if your property has two or more units, then you can begin to have additional cash flow.
However, you need to be sure that the internet bundle you are purchasing has the capacity to suit all of your units. If you try to underspend on the wi-fi and your tenants run up the bandwidth, they will quickly become dissatisfied and complain to you.
Don’t delay sending out invoices
Don’t let your laziness restrict your cash flow. As soon as a transaction is made, send out the invoice immediately because the sooner you send your bill, the sooner the customer will pay it and the easier it will be for them to remember it.
Use the same Property Management Company
If you own more than one property, we suggest you use the same property management company. Many companies will offer group or discounted pricing if they manage the whole thing. Plus, we find it easier for us only to have one person to speak to.
Discover How To Analyze a Properties Cash Flow With This Step By Step Guide
Longest Amortization possible
Some landlords get the idea to pay off the property quickly and using their funds. We understand the value in that, but we also recommend not to do that if your goal is to acquire more properties. Having your funds tied up in a property will limit and slow down your growth plans. We suggest to purchase all the properties you can and then shift to mortgage pay down.
If you have only one bathroom, build another.
We know it’s not always possible to build an additional bathroom, but only having one bathroom will reduce the number of tenants interested in your property and also lower the rent that property commands. If you can find a spot and ad another bathroom, you can easily charge $100 more per unit, if your property has more than one bathroom.
Increase your curb appeal
If your home looks dated and in need of some major landscaping you will scare off tenants, which in turn will make you rent your property for less money. However, having a great curb appeal and fresh looking front door, your property will earn more per month. Having a good curb appeal is one of the top suggestions realtors make to clients who are selling their properties as the Realtor knows this will boost their value.
Update the interior
There are some low-cost updates you can do to the property which will yield more rental income. We recommend painting with earth tones, update all plugs and receptacles; they should be white, not yellow and lastly update your lights and ceiling fans to modern ones. You can completely change the look of property by updating these basic items.
Increasing your rental properties cash flow doesn't have to be difficult. With these few tweaks you can have a better performing property in no time.
Once again, if you would like to learn how updating, refinancing, and reworking your mortgage can help you increase your monthly rental profits, let us help you. All you need to do to get started is click the link below to book a free strategy call with our team at LendCity and we will show you the options that are available to you.