Without raising the monthly rent!
Owning residential rental property can provide you with a steady “passive” income source. But while many real estate investors rely on only the monthly rent as their incoming cash flow and profit producer, there are actually a number of other ways to increase your ultimate bottom line. These include bringing more cash in, as well as reducing the amount of your outgo.
For instance, if you allow your tenants to have pets, you can typically increase the monthly rental payment amount. (In order to cover potential damages that are caused by the pet, you can also require an additional amount of security deposit before the tenant moves into the property).
You could also provide coin-operated laundry facilities in the investment homes and/or units that you own. These, too, could bring in additional income on a regular basis – especially once you have recouped the cost of purchasing these appliances.
Increasing your net profit on rental property can also be achieved by paying out less in expenses. Options for this could include:
- Tenants paying for all of their own utilities and other services (such as internet and cable television)
- Having the tenant(s) take care of exterior maintenance, such as mowing the lawn and keeping the bushes trimmed
Even if you generate a nice income from your investment property(ies), taking care of issues like finding and screening tenants, collecting rent, and responding to emergencies can be time-consuming. In this case, it may make sense for you to turn over these tasks to a professional property manager.
If you own residential rental real estate in Orlando and/or the surrounding Central Florida area and you would like more details on how the right property manager could make your life easier, contact us by using our online contact form. We look forward to hearing from you.