Rental Property - Ideas to increase cash flow

LLCs can be an option for asset protection as well as tax advanatges. The best bet might be to consult with an attorney or CPA from your state to inquire about the benefits and costs. Believe and Achieve! - Joe

Thanks for sharing hte info. Believe and Achieve! - Joe

Thanks for the input. Believe and Achieve! - Joe

Check with your local Realtor. Good luck. Believe and Achieve! - Joe

Thanks for the suggestion of meter zone values. Believe and Achieve! - Joe

Thanks fof the thoughts on the rental market. Believe and Achieve! - Joe

For rentsl units you want to make sure you have positive cash flow. That means your rebntal revneus will be greater than your expenses and you will have cash left over each month. That is positive cash flow. The more the better. Good luck. Believe and Achieve! - Joe

Thank you for sharing the HVAC idea you are using. Good luck on your future deals. Believe and Achieve! - Joe

As you build your Power Team you may want to have several questions that you ask each potential member. There is not an exact script to interview your Property Manager, but here are several questions you can consider asking your Property Manager Candidates:

1. What local areas do you manage properties in?

2. What is the average length of time it takes you to fill a vacancy?

3. How many vacancies do you have right now?

4. How many total units do you manage?

5. How do you advertise your units to find qualified tenants?

6. How do you screen prospective tenants?

7. Do you ever offer incentives to rent units? If so please explain.

8. What percentage of your tenants pay the rent late? How do you handle this? Please explain late fees, etc?

9. What percentage of tenants do you normally have to evict?

10. How long does it take to get the tenant evicted?

11. What is the average cost to the landlord in repairs, attorney fees and lost rent?

12. How is your fee structure based?

13. Do you provide itemized monthly statements?

14. Do you have a website and can I access information or updates for my account from your website?

15. Do you access a management fee above and beyond the cost of each repair?

16. Do you personally invest in real estate in the local area?

17. If you have multiple available units within the same area, how do you decide which vacant units to show first?

18. Can you provide me with a list of references? (Remember: Trust but Verify! Also a great way to find other investors in the area)

19. Can I get an email and secondary number (either cell phone number or office phone) to contact you with further questions?

Good luck. Believe and Achieve! - Joe

Thanks for the additional suggestions. Believe and Achieve! - Joe

Thanks for the additional insight. Believe and Achieve! - Joe

Thanks for the post. Good luck. Believe and Achieve! - Joe

Good luck with real estate investing. Believe and Achieve! :)- Joe

Thanks for the suggestions on appliances. Believe and Achieve! - Joe

Good morning everybody haven't been here for a while and forget about the great ideas I see when I do come here. One of the things that I've been concentrating on last year and a half is my buy-and-hold portfolio.I read some great ideas about increasing cash flow, but have not heard yet by far the largest way to increase cash flow is resident retention. I don't think we spend enough time on this in our business. I think we can all agree that losing resident (good residents) every year eats up a big chunk if not all of it, of our cash flow made during the year. The two top reasons, we lose money in the rental business is not screening for the right resident first and second is not keeping good resident for more than one year.I to have a resident retention program, and I'm thinking of starting a new forum topic on the subject, as I would like to hear what everybody else is doing.

Have a great investing day!

Hi Joe&Stacey,
Thanks for the list for Property Management. Very valuable info!!!
Karin

Hey, the property is near University and a lot people rent just a room, so we did room by room, which got double the rent and less damage when one moved out.

Thanks for the additional comments and insight. It is true that good tenants can really help with less stress and good cash flow. It would be great to hear more ideas from other DG members. Good luck. Believe and Achieve! - Joe

Glad you found the proeprty manager question list helpful. Good luck. Believe and Achieve! - Joe

Thanks for sharing the info about your property near the university. Believe and Achieve! - Joe

Here's a little tip I learned that will keep vacancies lower and increase the loyalty of your tenants.
Each year when the anniversary of their lease is coming up and it is time for re-signing, let them know that you will be installing an added amenity to the property for them to enjoy. You can give them a list of items, such as ceiling fans, disposals, new blinds, etc. They do not need to be expensive items, but should be items that are attached to the property to increase its value. Let the tenant select the one they want. They get to enjoy something new in the property that they personally selected as a reward for their good tenancy and renewing their lease. This helps keep your tenants in place and makes them feel appreciated.
I would also suggest that you find out what their children's birthdays are and send a card with a couple of bucks in it. Goes a long way to build loyalty.
The cost of these items is way less than a couple of weeks of vacancy or more if they move out, and keeps your best tenants in place longer.

I'm still new. What is Dean's Real Estate Success Academy?
I guess I can call and find out.

Dallin,
Thank you for sharing this idea. It is so basic yet so profound. A real win/win situation for you and your tenet.

In our rural area farm workers are also really good tenants that rent by the room since they stay only for as long as the season last, then move on to another state. others stay longer by just changing jobs, moving from one job to another,but they are always on time with the rent.

These are some great ideas. I am looking to buy rental property now so this was helpful. Thanks for sharing. Real estate is good business for investment.

Yes you are right this points will affect the cash flow and also increase it, but i am going to share some points which has to be care by landlords;

1. If you decide to take a Security Deposit for an Assured Shorthold Tenancy (AST) you must inform your tenants within 14 days of taking it which scheme you intend to use.
2. Holding Deposits are not affected.
3. You don't have to take a deposit.
4. It's more important than ever to have a good inventory.
5. If there is a dispute you will need good evidence to present to the dispute service or the court.

I couldn't agree with you more about the importance of building a rapport with your tenants. It let's them know that they are more than just a dollar sign. I have been fortunate with a few of my rental properties to have had tenants with me as long as 12 years.

I just filled a vacancy with a new tenant. I installed brand new carpeting and told the tenants that upon the anniversary of their lease I will have the carpets refreshed and steam cleaned for them if they renew. I LOVE the idea of offering an amenity though. I believe that I will start doing that for the other tenants.