Investors who own multifamily units have a number of opportunities to increase their cash flow. Some of the things are rather obvious, and today we’re talking about four specific things that you can do to bring more money in every month.
Pay Attention to Your Property’s Exterior
The outside of the property is something that’s often forgotten by landlords. People will do great things improving and updating the inside, and then stop or run out of money or just completely ignore the outside. You’ll be able to attract better clients and charge more rent when you pay attention to the vegetation and the landscaping on the outside of the building.
Setting a Price Consistent with the Rental Market
Everyone knows that right now, rents are going up significantly. So, if you’ve had a tenant in your property for a certain length of time, the rent you’re collecting might be under market. Or, perhaps you’re accustomed to certain rental rates and you might be misinformed about what things are worth right now. Get some good advice about local market values so you know what you should be charging in rent.
Add an Element to Your Tenant Screening Process
Screening makes a difference in your cash flow. Most landlords screen to ensure they’re getting a high quality tenant. But having a great tenant in your home for a long time can increase your cash flow. Turnover costs money in down time and the maintenance and repairs that are required between tenants. So when you’re screening, find out if you have a tenant who is interested in staying longer than a year. That would be a good thing to know before you approve the application and get the person moved in.
Visit Your Property and Note Maintenance Needs
Visiting your rental property regularly can also increase your cash flow. You need to see your investment and stay on top of minor repairs so they don’t become larger and more expensive. For example, caulking around the bathtub is often overlooked but inexpensive to maintain. If it’s not maintained, water can start getting behind the vinyl or tile and create a soft area in the floor. Over time this becomes expensive to repair.
These are just a handful of ways that you can increase the cash flow you earn on your multifamily property. For more ideas, please contact us at T.J. Guyer Property Management.