Rental Property - Ideas to increase cash flow

Another thing would be to build or convert unused space to storage areas to rent. Many times people are in apartments due to downsizing and may have more stuff than their apartment will hold.

Thanks for the additional great idea for more cash flow. Every additional dollar can flow to the bottom line. In the midwest there are usually basements in moist properties and storage lockers could be rather easily constructed. This would be a great idea for a few extra dollars a month. Thanks Coach and have a great day! Believe and Achieve! - Joe

These are some great ideas. I am looking to buy rental property now so this was helpfl. Thanks for sharing.

Jeremy

Thanks for your comments. I am glad it helps. Good luck on your rental properties and future deals. Believe and Achieve! - Joe

Those are some good ideas.

Thanks for the comments. This list can always grow as you think about other good items, add it to the list. I feel in the next few years I will have even more ideas to help increae cash flow for the rental units. Believe and Achieve! - Joe

It was always my policy to advertise and enforce "No smoking, no pets, no parties. I was asked to consider, though, renting to pets IF the building did not have nice carpet. Tenants are willing to pay an extra $50/mo. to help you raise money for new carpet when they move out! Obviously, you need to screen pets as well.

I just got some tenants into a place that I had just cleaned out the smell and everything. I don't allow smoking, but the previous owners did. There was minimal smell left when my new tenants moved in. I screened very well, but I trusted them when they said they were "outdoor smokers" and didn't like the smell of smoke in their home. Yeah, right.

They were GREAT tenants, until I went to do a repair, and I knew as soon as I walked in- cigarette smoke. Ashes and butts in the house confirmed the obvious. I took pictures, then talked to the tenants the next day. I told them that that was grounds for eviction according to our no smoking addendum. They said they were very sorry. I knew they would not become no-smoking tenants, so I decided to charge them an extra $50/mo if they wanted to stay, since the damage was already done. They agreed.

I would certainly use this as grounds for eviction if they were bad tenants, but in this case, I made an exception.

Andrew

Thanks for your comments and information. It is very true about smokers and pets. You can usually tell when you go into a place whether people were smokers and had pets. Sometimes you can get the ordors oout and sometimes you can not. Thus, a larger depsoit or an additional fee is a very good idea. I just saw at the paint store that you can even add an additive to paint, such as an arm and hammer product to help with the smells of the paint and property. Thanks again for the insight and good luck with REI. Believe and Achieve! - Joe

My opinion is that it is better for the landlord to profit by keeping all utilities OUT of (separate from) the rent. I have an 8BR duplex 4BR in front and 4BR in back, right next to the college in town. The building currently has one furnace for both units. The previous owner charged $800 plus electric. Heat is included in the rent.

How am I supposed to charge each unit a fair price for the heat? How do I know the tenants don't have the windows open in the middle of the Minnesota winter and have the thermostat at 75 degrees?

I CAN'T WAIT to get that second furnace hooked up next month! I just bought this particular building last fall, at a very busy time for us. We knew it would be first priority this summer to add that furnace. I paid some pretty huge heat bills this past winter. As i figure the numbers, we will be saving hundreds of dollars each year, letting the tenants be responsible for their own utilities.

Most landlords know this. Some landlords disagree. I use one-year leases to avoid many headaches.

one way to keep them from building up such a high bill is put int he contract that you will only pay x amount of money the utilities and if they go over the x amount then pay the overage... example you pay up to 150 if the bill is 200 then you pay 150 and they pay 50. that way its fair... thats what flordia landlords do... it seems reasonable to me.

Thanks for sharing your insight and comments. In some parts of the Midwest multi-units with one furnace are common. This expense for heat can be very high as you indicated. In the winter you will see come tenants of these multi-unit building even have their windows open. Thus, buidling with separate utilites will work out the best. If you have a duplex such as you mention it is smart to get the utlities separate because it will more than pay for itself over time. Thanks for sharing your thoughts. Good luck with REI. Believ and Achieve! - Joe

Thanks for sharing your ideas with the forum. The more creative ides we discuss the better it will be for everyone. Thanks again and good luck with REI. Believe and Achieve! - Joe

Love all the ideas you all have posted...Some I already use, others I will look into or use in the future. Thanks everyone! Best, Angie

I live in Alaska as you know it can be really cold here and the winters last a long time, so the heating bills are definately something on the formost of my mind especially since we pay some of the highest prices in the nation for our fuels. These tremendously high utilities I know have killed a lot of landlords. I want to invest in multi unit rentals between duplex to 8 plexes and would like to get sugestions on how to deal with this problem. If you have single heating units how can you tell how much each unit uses for fuel, ect.

To Your Massive Success: Tom Taylor

Does anyone on here know anything about LLC's and keeping your investments seperate from your own personal stuff so that according to taxes and everybody concerned that everything is in the companies name and not yours.

Here's a new way to increase the cashflow on the rental property!
Saw this one skimming thru Craigslist

http://chicago.craigslist.org/wcl/sbw/1736538993.html

For the midwest and northern states... Here's a thought: find a great geothermal guy or gal in your area and partner with 'em. peace,

Good information

I want to buy a house and use it for an alf. I think there can not be two alfs within two miles of each other. Is there a list for Fl. so I know wich house not to use or buy?

Tom

You can install metered zone valves before they reach each heating unit.

Demand will be the overall factor in the coming months. There's a shortage of housing and due to the foreclosures and ruined credit, people will be forced to rent and pay higher rents than ever before. Rental rates are expected to rise 50-100 month in short term and even higher as time goes by.

Can someone give me some input on a rental deal? I have a agent who has come across a property for sale with a tenant occupying it. The seller is asking for 151,000.and will negotiate the price based on the listing information.I don't have all the numbers right now but would like to hold this property for myself if the numbers are right.

Thanks

i have a duplex where i pay the utilities w/ central heating and air. the installer set internal limits so the tentants cant go above (heating) or below (cooling) a certain temp range. also add in lease no ac or heaters can be used.

Hello,

I'm currently active in the military based in VA and I just recieved word that my wife and I are being relocated to Maryland the end of this year. I'm looking for tips on how to groom and find a reliable property management company to rent out my property while I'm away. I'm not planning to move back into this property, but I do want it to be part of my real estate profolio. Any help or advice would be greatly appreciated.

A home with a full or partial fence will add value and be a plus for children and pets and who doesn't have either...and if not, you are an exception.
Other value would include a screened in patio for your pets, storage, etc.

Becoming a landlord has always been a well-worn path to millionaire status, with good reason: Not only does owning properties let you generate a second source of income, your tenants' checks will help you build equity in your investment.

The case for owning rental real estate is even more compelling now thanks to depressed prices, super-low interest rates, and the fact that the shortage of rental housing is the most acute it's been in five years, according to CoreLogic.

With median prices on existing homes at around $182,600, you won't get rich by owning one home. Based on modest estimates for appreciation and reasonable expectations for profits, it's likely to take three or more properties to produce the cumulative equity and rental earnings you need to get to the nominal sum of $1 million down the road.
KEY MOVE: Expand your holdings to at least three properties!

Randy Bailiff
Dean Graziosi Investment and Life Coach

Randy great info, this is my 1st time posting on here. I know there is a lot of info here on rental. I think have money coming in from more than just my job is a very good idea. A.J.

Thanks for the information Randy. I am new to Dean Graziosi's website and am in the process of reading his book "30 Days Real Estate Cash". I attend one of his free events... unfortunately attending the training looks as if it has to wait. (no money)

With all that said I am moving forward with securing a way to become an income property owner, setting up a renters scenario within the same residence that I will live in as my first income property. I currently live with family and want to move closer to a higher population city - Dallas. I'm about an hour away today.

Here's my question. What is your advise to me on getting started with an income property? Is it doable for someone with bad credit, no money and no full time job? I'm 51 years old and single and I am looking to be financially secure so I can focus on growing my existing business as a Life Coach. Bill, the Real Estate guy in the video with Dean talks about how a person has a hard time making emotional decisions for himself so it's a good idea to have an unattached person (like a neighbor) talk with you about choices. That's me.... I can life coach people and help them with their success and have ended up in a financial pickle.

What words of wisdom do you have for me that will help me fast track (at a steady pace) finding a home to live in and rent space to others... or is this a good idea as a first income property. I live in Texas if that matters.

Thanks
Debbie

I had an investor friend of mine whom had tenants that wanted new stainless steel appliances. So he told them if them he would agree if they signed a 3 year lease for $100 more per month. They agreed and are happy.

Glad to hear you enjoyed the tips. Good lcuk on your future deals. Believe and Achieve! - Joe

Some landlords I know will taje the heatuing bill and divide it by square footage by unit and have the tenats share the bill based on their square footage. Some other lanlords have put in separate meters which can get rather costly. Good luck. Believe and Achieve! - Joe