Maximize Cash Flow for Apartment Property Investors
The goal of owning rental properties is to create or supplement an income of reliable cash flow and gain tax benefits from the appreciation of those properties. There are several factors for the ROI from rental property, but that doesn’t make it impossible to increase the monthly cash income. You may have to spend a little money to make more money, and knowing the what, when, and where to spend that for the most significant ROI is the trick.
First, you need to uncover those hidden marketing assets within the properties. After you learn where the ‘where’ is hiding, you’ll have a clearer picture of the ‘what’ and ‘when’ part of this equation. Then you can get ready to see an increase in your cash flow by as much as thirty percent.
Tips, How You Can Optimize Your Leverage In Making More Cash Flow:
Without any further ado, we offer you the following apartment property management tips to find those possibilities and how you can optimize your leverage in making more cash flow:
Examine Your Property
Take the time to contemplate the following. Try to find one example in each of these categories:
- Hidden assets
- Over-looked opportunities
- Under-valued relationships
- Under-performing activities
There Are Your Hidden Assets to Leverage and Optimize
Now your rental property’s hidden asset is exposed, how do you get them activated? Here is a list of tools that are within your reach:
- Past and current residents
- Under-promoted advantages over competitors
- Unique amenities and services
- Under-par leasing performance
- Relationships outside the leasing industry
- Property strengths
- Current marketing process
- Additional services
- Promoting lifestyle
- Resident retention rate
- Relationships in community
Distinguish Your Property
What makes your rental property unique from all the others? You can conduct a property assessment with your current clients and ask them what makes your property different from others where they have lived. If this means making repairs, renovations, and upgrades, this expense is needed to bring in more cash. To make money, you have to spend money.
Cheaply done repairs save money on the front end, but could be costing in a long-term, loyal resident, and having to re-repair the same repair over and over. Paying the premium upfront for repairs, renovations, and upgrades that are there to last, and you’ll have tenants that are there to last too.
Optimize Current Marketing and Tenant Base
To optimize your current marketing, integrate your newfound advantage over the competitor’s property. Stress what your property offers that the other properties don’t and use your current tenants for marketing advantage.
Create a marketing program centered on a resident referral system. Once you have the repairs, renovations, and upgrades completed successfully, you’ll have a solid bedrock to build a relationship with your tenants that can bring in more tenants. Making it a win-win for you and your tenant is a positive step in the right direction that leads to more cash flow.
Build Alliances for Marketing
Your current tenants aren’t the only alliance you have to bring in more tenants. Visit the local businesses around you and partner-up with them. Your tenants have to eat and shop, and they like to play and relax. With local business partnerships and a shared market strategy, your tenants can benefit from what they have to offer. They have a reference point to refer customers seeking a new home.
Raise the Rent
Nobody likes the sound of that, especially tenants, but it is an obvious method to increase cash flow. A significant increase is hard to justify, but smaller increases aren’t as frightening to tenants. When you look at $25 per month/unit x 10 units, you have $3,750 more a month coming in to help pay for those repairs, renovation, and upgrades. If you have established a healthy relationship with your tenant, a reasonable increase won’t be asking the impossible and easier to justify if needed.
Related Article: How To Raise The Rent On Your Property
Other Options to Increase Your Rental Income
Refinancing may be an option, or you may need to steer away from that plan. Refinancing is ideal if you don’t end up paying more than you were. This option could give you more money each month that can be reinvested elsewhere. If your refinancing requires a down payment, make as big of a down payment as you can. Bigger down payment will make for smaller monthly payments and less mortgage insurance too.
Minimize your expenses where you can, and that will increase your cash flow. If your apartment building isn’t tenant-paid utilities, you need to check into making that happen. Look for third-party vendors and work out a special discount rate with them for you and your tenants, like internet and satellite services.
Call RTI Properties Inc., a professional Apartment management company, and get more information about maximize Cash Flow for apartment property investors. To learn how we can help you with our property management services, contact us online or more conveniently, call us now at (310)-532-5994.