It’s true what they say: cash is king. This is especially true when it comes to investment properties like rental homes. It can be a lot of work to keep up with a rental property (unless you use a property management company, of course), and you don’t want all that hard work to be for nothing.
If you’re trying to think of ways to increase the cash flow on your rental property, we are here to help! We’ve come up with some changes you can make that will make your property the income source you’ve been waiting for.
- Reexamine your fees. Are you charging an application fee? You should be. Application fees will make sure you only get serious applicants vying for occupancy of your house. This can also help you offset the cost of background checks (you’re doing those, right?)
You should also reconsider charging late fees, if you haven’t done that before. If fees aren’t stated explicitly in your current contracts, have them rewritten to include when a late fee will be charged, and how much it will cost. Tenants that don’t pay on time are disrespecting their rental agreement. Remember: it’s not personal, it’s business!
- Upgrade appliances. Newer appliances will do a few things for you. First, the home will be an easier sell, meaning fewer vacancies. Also, newer appliances are often more energy efficient, lowering power and water costs noticeably. You’ll recoup your costs in no time.
- Cut out carpet where you can. Carpet is difficult to keep clean and needs to be replaced often, especially when you’re in-between tenants. Replace carpet with something more durable (tile is great!) that will stand the test of time and not need to be replaced so often. Bonus: it’s easy to keep clean, so your tenants will love it, too!
- Charge for pets. Allowing tenants to bring their furry friends along to your property is usually a good choice; such a restriction can be a deal breaker for many potential renters. But it is very reasonable to increase the rent by a small amount (say, $20-$30) when a pet is involved. Pets can do damage to a property and require a deeper cleaning once the tenant moves out, so the increased rent is completely justified.
- Install new window treatments. New blinds, shades, or shutters can be very appealing to potential tenants, which means that your property may be rented faster when you include these things. Also, you’ll keep direct sunlight out of the home, which could lower utility bills significantly, especially in hot climates.
Whether they’ll make it easier to find new renters or help you to manage cleaning costs, these changes can help you keep your rental property profitable and your cash flow high.
Looking for more great tips, or more help managing your rental property? Contact Real Property Management at 480-719-1243 to get property management tips from experts who have been there, done that, and helps dozens of property owners turn their investments into profitable ventures. We can’t wait to help you succeed in your business!