Growing Your Rental Income Successfully
- Published on Monday, 01 February 2016 08:38
- Eliot Chapman
The goal of every real estate investor is to get the highest possible profit and even after you have made your calculations and realized that you can obtain a decent cash flow from the properties you own, it would still be great if you could increase your cash flow even more. Here are a few tips on how to maximize the profits from renting your Charlotte NC real estate
Reduce vacancies as much as possible
Obviously, vacant units will not make you any money, so you should make sure that the property management firm you collaborate with does everything in its power to find you tenants. If your properties are vacant half the time, you can’t be expected to keep a profitable business. If you notice that one of the properties is not being rented as much as you would have hoped for, you should take the necessary measure, either by coming up with a special offer, such as a discount in the first 2 months that someone rents it or inquire about some sort of advertising campaign.
Most apartment buildings have a single master utilities meter, which is why the owner is the one in charge of all utilities bills. However, if you invest in a sub-meter for each apartment and ask tenants to pay for their own utilities, you will soon notice a drop in costs. Naturally, when utilities are not included in their rent, they will waste less water and energy, which is not only good for your pocket, but also for the environment.
Install laundry machines
If you offer unfurnished apartments, it could make sense to install some coin operated laundry machines in the basement. Of course, you will have to do some calculations, because this is an investment that is not always worth doing. But, if the apartment building is rented at full capacity and you have the necessary space in the basement, this could be a great investment, because everyone needs to wash clothes and it is always more convenient to just go in the basement of the building rather than at a different laundry facility. Other similar options could be installing vending machines in the hallways of the building, as these could also be a source of extra income at the end of the month.
These are just a few ideas of how to increase your rental profit. If you feel that you have enough knowledge and experience of the rental market, you could handle the management yourself and not rely on a dedicated firm to find you tenants and solve minor problems.