Keep your income stream flowing with smart ideas from Cousin James Management
As a rental property investor, your strategy to achieve your financial goals is a priority. Your investment is a great monthly income generator and you enjoy numerous tax breaks. But there’s always a next step you can take to generate new income into your investment, as long as you stay in tune with market activity and new ideas.
You can increase cash flow from your rental properties with helpful strategies such as optimizing rental income, adding revenue streams, increasing the rentable space, replacing inefficient appliances and fixtures, and investing in more affordable markets.
Following are 8 helpful tactics to put into use that will keep the rental income flowing.
- Buy more rental properties – Buy higher quality properties with better long term tenants. That’s where the bigger profits exist.
- Study rental income markets in each city – Don’t shy away from buying and managing properties in other productive cities, towns or neighborhoods in the US or abroad
- Think long term – Buy quality properties with potential in recession-proof regions.
- Upgrade with tech amenities – Tenants don’t mind paying premium rates for efficient tech amenities.
- Gradually increase your property buying –Solar panel systems, energy efficient appliances such as tankless water heaters, big windows, beautiful kitchens, and nice flooring appeal to quality tenants.
- Avoid vacancies – Starting out with high quality, long-term tenants is a major plus.
- Visit your tenants – Be a caring landlord and ask them what they like or dislike. Your tenants are important to your company’s profitability.
- Sell your lowest performing property and buy a better one. If a property is too much to keep it going, consider if it is really worth it.
Other smart ways to increase your rental revenue stream:
- Rent fully furnished properties
Certain segments of the rental market are looking for fully furnished homes, condos, or apartments. Vacation rentals are among the most common. You can charge a premium for these real estate rentals, not only for offering furnished spaces, but also for the comparatively short duration of the stay.
Vacationers are not the only ones looking for furnished spaces. Some professions, like traveling nurses and auditors, relocate every few months depending on where they’re scheduled. Corporate housing such as this is an excellent way to increase income from rental properties. You can contract with a single company to host all of their traveling professionals.
- Offer Additional Storage Space
Storage space is always a premium no matter where you live. We tend to accumulate more stuff than we can store. Renters come in with their holiday decorations, bikes, and seasonal clothes, gym equipment, all of which require storage space. As a property owner, you can capitalize on this universal need by offering additional storage space.
- Offer Additional Services and Amenities
In these busy times, everyone has too much to do. Common chores and errands like laundry, housecleaning, and getting groceries present unwelcome interruptions and sometimes even get neglected. Many renters are all too happy to pay someone else to handle these tasks. You can increase your rental property income and boost resident satisfaction by offering these services, especially in high-end locations.
- Maintain a Personal Touch with Your Tenants
Provide exceptional customer service to your tenants by being responsive, addressing maintenance requests promptly, and following up to make sure your renters are happy with the home. Show appreciation with a $10 coffee shop gift card — an inexpensive way to surprise and delight your renters. Build a sense of community by making your renters feel welcome to the neighborhood, offering suggestions or answering questions about where to shop, eateries, and such.
Regardless of which of these improved tactics you choose to increase your long-term revenue strategy, you’ll discover which performs best to help you grow your rental yields.
Calculating the right numbers and data for each property you’re interested in buying is an essential first step to getting it right. That’s why we created our helpful Rental Property Analysis Checklist. It provides significant, key details of what you need to look for before making a real estate purchase.
For more helpful ideas and real estate investment help, contact Cousin James Management.
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