If you want to boost your profits on your rental properties there are basically two things you can do that are guaranteed to increase our profits. You can decrease your expenses and you can increase your income. Sounds ridiculously simple and it is but each of those steps towards increasing your rental property cash flow has some work attached to it and you won?t make more money instantly.
Decreasing your Expenses?
Decreasing your expenses might not seem possible at first, but with a little work and a diligent review of your regular costs you can probably find some places to cut back. One thing you should do is look at regular service providers and see if you can find someone who?s willing to do the work for less or see if there is a way to optimize your current providers to get more out of them or a discounted rate.
Increase your Income
Raising rent is usually the first thing that comes to mind when landlords and property managers are thinking about increasing their rental income. But there are other charges you can implement to increase your income. Consider charging for parking spaces and renting out unused parking. Perhaps you want to loosen your pet restrictions and charge tenants a security deposit and a small monthly fee for keeping a pet. Make your money work for you, by making sure any deposits you collect are being held in an interest accruing account.
Just be careful that you?re not decreasing your expenses and increasing your income too much or your tenants will feel ripped off and you?ll earn a bad reputation in the local market.