Do you want better cash flow
from your rental properties? You really can't just raise the
rents arbitrarily, because if tenants leave, income goes down,
not up. There are other ways to increase your income from your
properties, of course. Start with some of these ten suggestions.
1. Coin-operated washing machines.
If you don't have the money to do this yourself, you can find
a company that will do it for you, and share the income with
you.
2. Rent parking space. I got tired of a renter's extra car,
so I just started charging a weekly fee. A little extra income
and I didn't mind so much.
3. Raise rents. Okay, we dismissed
ARBITRARY rent hikes as a cash-flow solution, but check on rates
for similar units. You may be renting at below-market rates.
4. Storage sheds. If your apartments
are small, your renters might need a place to store their things.
Why let them spend their money elsewhere? Put a few rental storage
sheds on the property.
5. Late fees. It's perfectly
fair to have a high fee for late payment of rent, and guess what?
Those who are chronically late usually won't even complain -
they just don't look at these things the way others do.
6. Improvements for rent increases.
If it's worth $25 more rent to a tenant, install that dishwasher.
Even on a credit card you'll be paying less than that per month
for it.
7. Vending machines. With large
enough rental properties, others will do this for you for free,
and give you a share of the income.
8. Rent rooms. A four-bedroom house could make more money if
you include utilities and rent by the bedroom. This has made
many fortunes for investors in college towns. It will mean a
lot of management, however.
9. Rent-to-own deals. Usually
you'll charge a non-refundable deposit, and higher than market
rents in these deals. When renters change their minds, as they'll
often do, you got the deposit and better cash flow during their
stay. This is great when poor cash flow makes you want to sell,
because you either sell or get the better cash flow as you repeat
the process.
10. Reduce your expenses. Every dollar of expense you cut goes
to the bottom line. List all expenses of your rental properties,
and look at them one by one. How can you reduce them?
Steve Gillman has invested in
real estate for years. To learn more, and to see a photo of a
beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Do you own real estate articles or stories and want to share with other investors?
You have chance to win
$100 Amazon Gift Certificates. We will give
away 3 prizes for top authors each month!
Email your articles or stories to:
articles@buyincomeproperties.com
© Copyright 2001 - 2010 by
BuyIncomeProperties.com
Visit
Real Estate Forums
for every real estate investing topics!
Enter Here
Top of Page
