In the real estate market, the rent income is called passive income, but the headaches and struggle that goes with is anything but passive. To maintain the healthy and consistent cash flow isn’t an easy fiat. A landlord struggles day and night to keep his or her tenant satisfied for renewal of contract. Quality tenant is what keeps the flow steady, here’s what you can do to keep the incoming coming without any breaks.
PRICING THE PROPERTY:
Understand the potential and drawback of your property and then price it right. With the right pricing you can:
- Make your property more visible online
- Get potential inquired as well as request for showing
- Get steady stream of tenants
Observe your rental property from the tenant’s point of view to understand the pricing. You can increase the rent gradually, in time. Being greedy in the start may leave you empty handed. Raise priced very couple of months and give proper notice proper raising prices.
CHOOSING THE RIGHT TENANTS:
There are three factors to every real estate renting.
Between these three steps the landlord can use a month’s cash flow in a year. This is a fact and no matter how hard you try this is going to happen to you sooner or later. Here are a few tips to hang on to your best tenants.
- Proper screening
- No late payments or rule violations
- Communicate better to make your tenant sign the long-term lease agreement
- Get feedback from your tenant regularly
- Personally, you can be a responsible, polite and easy going landlord to make your tenants fall in your will your mannerism and stay longer.
SEEK LONG-TERM OPPORTUNITIES:
You can easily ensure a healthy stream of cash flow if you take in long-term rentals. Don’t go for seasonal renters, students or vacationers or you will have to seek a new tenant every other month. With regular renter you can also increase the rent rate every two years.
Take advantage of you taxes to pay less and get more. Learn the laws of tax deduction it will help where you are renting your own house or a 2-storey building. You can learn all the ropes by appointing a tax expert. You can save a lot on depreciation, transport, interest, car and travel expense, labor expense as well as insurance start-up expenses and casualty or theft losses.
You can’t spend a lot on maintenance this will surely break the bank for you. But repairs are nightmares you can’t ignore. Learn to catch things at early stages so that you can do DIY repairs and not pay an arm and leg in the name of maintenance. Go for simple updates to keep the place looking fresh without spending a lot. Be upfront with your tenant, let them have their share of maintenance to-do list, also take proper security deposit so that the tenant will treat your property with care. Always do proper budgeting and keep an estimate of the maintenance cost.
Let the tenant know that he can’t let minor things like leaks and sparks go unnoticed or unreported. These can turn in to huge issues. Add penalties to the lease agreement so that the tenant will know that he will be in trouble if they ignore t rules.
OTHER KEY POINTS:
- Keep your renters happy so that they will renew their contracts
- Keep your renters in line so you don’t have to pay for unnecessary damages to the property.
- Your rental property will generate consistent property if you know how to negotiate a favorable deal
- Greed will get you nowhere, there is plenty of time to earn what you think is fair
- Don’t shy away from productivity and hard work
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