If your rental property business needs more cash flow, you'll need to focus on increasing your income. Increasing income boosts your cash flow, but how can you achieve this goal? The best way is by hiring a property management firm. The firm will focus on this aspect in three ways. Continue reading to learn three ways to boost your rental property income.
1. Decrease vacancy rates
A vacancy rate refers to how many units are vacant compared to how many units you have. For example, if you have one vacant unit out of 10, you have a vacancy rate of 10%. Every vacant unit results in a loss of income. Therefore, reducing the vacancy rate increases your income. When you increase your income, you improve the cash flow and make more money. You can reduce the vacancy rate by finding tenants faster. You might need to advertise more or let a property manager find tenants for your units.
2. Decrease vacancy cycles
A vacancy cycle is similar to a vacancy rate, but it refers to a specific time frame instead of a ratio. A vacancy cycle is the time it takes to replace a tenant. For example, if someone vacates a unit and it takes 60 days for a new one to move in, you have a vacancy cycle of 60 days. 60 days is a long time to have a vacant unit, and it's 60 days of no income. Reducing the vacancy cycle results in losing less money. Therefore, you must reduce the vacancy cycle to improve your company's cash flow.
3. Choose better tenants
The third method to boost your income is to choose better tenants. Poor tenants might damage your units. They might also skip paying their rent. You might even have to evict them. When you improve your tenant selection, you end up with people who pay their rent. You can have people who care for the rentals, and you'll also reduce your chances of evictions. Focus on finding the best people for each unit and watch your income grow.
Hire a property manager to boost your income
Boosting income is vital for your business's success. You can try to boost your income by following these three methods. You can also do it by hiring a property manager. Look for property managers in your city and hire the best one you find.
Contact a property management company to learn more.Share