It’s no secret. Every real estate investor wants to improve their cash flow. We’ve rounded up some real estate investing tips you can apply to put you on track. After all, the whole reason you got into this business in the first place was so you can take care of yourself and your family – all while making a profit in the process.
Here are 5 ways to increase your cash flow.
1. Make Improvements To Your Property
Making improvements to your property like adding new windows and sealing doors can save you on heating and cooling bills as well as add quality so you can charge more. Switch whatever you can from electric to gas, like a stove, to save on your utility bill. Upgrade light fixtures and faucets to add even more value to your rentals.
Are doors creaky? Do kitchen drawers get stuck often? Upgrade them! Be sure to take a proactive approach to property upgrades because it could save you from problems in the future (like a leaky pipe under the sink) and it will keep tenants happy.
2. Upgrade Your Rental Listings
Improve the quality of your listings with better photos and messaging to attract your ideal tenant. Hire a professional photographer so you can present your listings in the best way possible. They will help highlight your property’s characteristics and make it look inviting.
And, don’t forget to stage your rentals! A little staging goes a long way.
Along with high-quality photos, use more targeted and thorough property descriptions when you post on listing websites to attract better leads. This will make your listings more likely to appear in prospects’ searches and go a long way to filtering out the leads you don’t want.
3. Try A Furnished Rental
Furnished rentals come with many benefits. For one, furnished units don’t need the same hassle as large moves like renting a moving truck or buying furniture. It’s a convenient way for tenants to move in, especially to fill vacancies faster for quicker turnaround.
That being said, furnished rentals are often only rented out for short or mid-term. This is ideal for students, divorcees, travellers and travelling business people. It’s a growing market you can take advantage of with big opportunities.
4. Decrease Your Operating Expenses
Seems obvious enough, right? The key is to decrease OpEx in the right places. One of the ways you can do that is by going green. Switching to environmentally friendly sources makes you more energy efficient so you can save money. This can be done by switching to LED light bulbs, and energy-efficient appliances like smart fridges, dishwashers and washing machines.
Another way you can decrease operating expenses is by hiring a property manager. Not only do they save you time, but they also keep your costs down over the long term because they provide property maintenance services and tenant management services that avoid costly repairs or drawn-out LTB issues.
5. Add Amenities To Your Building
Tenants love amenities. They will help to set your property apart from the rest, attracting more leads and generating cash flow in the long term with better tenant retention.
Adding amenities can be as simple as extra storage space or as elaborate as a fancy gym. It’s best to do some research on what your market is looking for and what’s local. For example, you can create a reasonable pet policy or offer a personal laundry room.
You’re in this for the long run, have a long-term rental strategy.
You’re in this for the long run so it’s important to have a long-term strategy for maintaining and improving your real estate investment property. One of the best ways to do this is by working with an expert property manager.
Having a property management company is a powerful way to generate consistent cash flow and ROI. They don’t just collect rent, they maintain occupancy, find quality tenants, keep up with preventative maintenance and keep your expenses low. This is the kind of service you can expect from our Ottawa property management team. If you’re ready to get started, contact us here.