How to Increase Cash Flow from your Rental

Every Landlord's goal is to maximize cash flow, or profit. While making a profit off of rental property may often be difficult after maintenance, mortgage, taxes and insurance; there are many easy ways to increase your income.

Difficulty: Easy

Instructions

1. Raise the rent. This is the easiest way to increase cash flow however you must consider the going rate on comparable properties in the same area. You will want to keep the increase low enough as not to lose the current Tenant, maybe $25-$50 per month more.

2. Decrease operating expenses. If you are managing your properties it is likely you have very few operating expenses. If you are managing several properties for other homeowners as a business, you may want to reevaluate your office and business expenses.

3. Require your Tenants to pay for utilities. While offering 'all utilities included' may give you a leg up on other Landlords, you can definitely rack up expenses when paying for someone else's electricity, water, cable, etc.

4. Reduce turnover. While you cannot prevent a Tenant from leaving, turnover is extremely costly for a Landlord. Often times security deposits do not cover damages and when you factor in lost rent you come out upside down. There are no foolproof ways to avoid turnover, proper screening is the best defense.

5. Upgrading your rental property will increase the value and therefore allow you to increase your rent. Try installing new carpet or flooring; increase your curb appeal through landscaping and cleaning.

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on 6/18/2009 These are some great suggestions. Thank you for your contribution!