It is every rental property owners’ dream to have a steady stream of income from their properties each month like clockwork. But, if you’ve owned rental real estate for any length of time, you are likely well aware that this is not necessarily always the case.
In fact, even if you have good-paying tenants residing in your unit(s), there’s a chance that the rent check may not be adequately covering all of your expenses – especially if you’ve had to make some emergency repairs.
But what if there was a way to increase the amount of income you bring in, without having to purchase any additional property?
There is – and doing so may not be as difficult as you might think.
In fact, there are a number of strategies that you can use for bringing in additional cash each month. Some of the most common include:
- Charging a flat rate for utilities. Charging for utilities – which includes an upcharge for your time spent administering the process – can help to boost your monthly income. And, while just $20 or $25 extra each month might not sound lik much, it can add up to several hundred dollars per year.
- Add coin operated laundry facilities. If your tenants do not own their own appliances, having access to a washer and dryer on site can be a welcome convenience for them – and one that they would gladly pay to use.
- Take all of your allowable tax deductions. Rental property owners have numerous tax deductions available, including the cost of mileage, insurance, and property depreciation. Here, it is wise to discuss your options with a tax accountant or CPA.
Another “cost” for rental property owners is the time that is spent managing and maintaining their properties. So, if you’re looking for a better return on your time, then hiring a property manager could be the answer.
If you’d like more details on how an experienced property management team can help, contact us today.