How do you increase your cash flow and minimise your expenses on your portfolio.
Be interested in what you do
Remove washer and dryers out of properties that require the landlord to pay for water
Update all electrical lighting to LED
Appeal tax increases / assessments
Require tenants to mow / shovel snow
I do allow pets in my places. I charge $25 per animal per month for them. I also write in my lease that if there is a repair for $150 or less the tenant is responsible for it. I do monthly inspections on my places.
Remodeling on vacancy is our big one, but:
- Insulate attic
- add storage pallets in basement @$x a month
- water pressure regulator where the line comes into the house.
- water efficient heads
- Chicago controls thermostats
- coin op laundry was our move this year- big ticket item but I am still a kid when I empty the quarters 👍
- make room for parking on the property- additional $
- turn the boiler down.
One of the biggest drains on a portfolio are vacancies and turnovers. Aim for long tenancies. Tenant retention is key... Happy Tenants = Happy Bank Account!
Have tenants responsible for all utility bills especially in sfh. Tenants pay for water/sewer/garbage/electricity/gas/mow the lawn/shovel the driveway. Pet fee $250 plus $35 per pet per month. In multiunits submeter utilities.
Always challenge the property taxes.
Cash flow is not the only benefit.
Tenant is paying your mortgage and paying down your principle
Tax write off on property taxes and mortgage interest
Some appreciation in property value but I do not count on it, it’s a bonus when it happens. It is cyclical.
If you truly analyze your investment you receive much more benefits then just cash flow.
Buy n hold is long term wealth.
On my 8-plex I put in LED lighting in the common areas since they're on a lot, especially in winter. I also put covers over the heat regulators on the common areas as they seemed to be magically turning themselves up too much. The covers paid for themselves the first month. I also do most work there myself. It saves a ton of money.
How to increase cash-flow: Find wastes and mitigate inefficiencies; With sub-metering water & sewer use drops by 25 to 35%. Let me know if I can help; We're here to answer your sub-metering questions.
Reducing expenses is key and can usually be accomplished through a plan of preventative maintenance. Do not invest in properties that do not have separate utilities for all tenants. Do quarterly inspections and bill tenants directly for all tenant caused repairs. Be pro active in policing tenants. Move swiftly when rent is not paid on time. The biggest and most expensive mistake is not posting notices immediately when tenants are in violation of their lease. Time is money. Compassion is very expensive. Plan for turn overs do not avoid them. Every new tennat is a opportunity to increase your rent. It is mandatory that landlords do annual rent increases. Do not spend money to upgrade or do cosmetic work that will not increase rent. Rent increase pay back should be 2 years or less on all reno expenses.
The best way to increase return is through leverage. Never leave cash sitting in real estate doing nothing. Equity is where money goes to die. You only allow dead equity when you have no use for any additional income.
@Marisa R. . In order to increase cashflow, you need to increase income and/or decrease expenses. Here are five ways to increase cashflow:
-Washer and Dryers
-If you are responsible for electricity, have a company make an energy assessment of your properties
-Turn some of your units into short term rentals.