Ways to Increase the Cash Flow on a Rental Property

Ways to Increase the Cash Flow on a Rental Property

When it comes to owning a rental property, one important feature of being successful is making sure that you have sufficient cash flow to cover your rental property expenses and to make sure that you get good revenue. There is a saying "A penny saved is a penny earned", and this is applicable to rental property business. Property owner invests in rental properties to make money.

Cash flow is basically the money left after you deduct all of your rental expenses. If you think that your cash flow doesn’t give much good effect on your income, it would be a great idea to try some ways to increase the cash flow. So in this article based on, would give you some ideas on how to help you increase your rental property cash flow.

• Reduce utility bill expenses. Any bill that is related to the rental property that you can reduce will help you increase cash flow. If you choose to handle paying some of the utility bills, then it would a good idea to think of a way on how you can save money to increase cash flow. The question is how can a landlord save money on utility bills; some of them are the following:
• Use energy-saving light bulb.
• Install showerheads that can save water.
• Fix leaks on faucets and showerheads to save water.
• If your rental property is either semi-furnished or fully furnished that includes some appliances, you may choose an appliance with energy-efficient models.
• Adjust thermostat by lowering or increasing the temperature by few degrees depending on the season.
• You may turn the water heater settings down to 120 degrees.  

• Allow pets in your rental property. Whether you choose or not to allow a pet in your rental property is totally up to you. It is important to choose a pet that won't give annoyance to your neighbor. If you allow a pet in your rental property, you have the option to advise your renters that they will be responsible for any damage; they should keep the premises inside and out of the property in good condition and should be written in the lease agreement. Allowing pet in your rental property is one of the things that can help you increase your rent and/or cash flow because you can either charge your tenant for a pet deposit, pet fee or pet rent.

• You can reduce the maintenance issue by replacing the older items by a newer one. Regular maintenance checks resolve small issues, which prevent bigger damage and greater cost savings in the future. This will also reduce maintenance calls from your renter. And fewer maintenance calls means fewer maintenance costs.

• You may raise the rent. Depending on where your rental property business is located, it may have different rules and regulations concerning the rent increases. Make sure to study the market first on the location before making any adjustments on the rent. If your rental rates are too high, there is a risk of losing regular tenants and prospective tenants. 

• Add income from other sources like garage and parking rental. Ensure that your advert describes details such as the garage or parking rental, price, location and/or other amenities like electricity included, etc.