It is not easy to find the ideal tenant, especially when you don’t want to compromise the amount of your rental income. These are some of the profitable strategies which you can adopt for increasing the cash flow.
- Reduce Vacancy
Finding the long term tenant would be the most difficult task. But this old strategy is still working most efficiently for maximizing the rent. You need to offer tenants the price incentives based on the duration. In the unavoidable situation, the best bet would be to decrease the turnaround time. You have to do this by making sure that you will start advertising your property as soon as you get the notification from your tenants. When you are leaving your property empty for a month it will costs you around 8.3% of your rental income.
- Multiple Revenue Streams
If you are owning the apartment in the gated community, considering adding other sources of income, then you can do this by installing the vending machine or setting up the gym with a registration fee which will also beneficial to the residents. This will not only provide you an additional source of income but will also increase the total value of your asset.
When you are owning an independent house, you will be offering the cleaning services and the landscaping for a fixed fee. The tenants would be happier when you are taking care of this cleaning responsibility on you.
- Use of Tax Breaks
Renovation of the property is also a big expense. But it is very important for maximizing the rental income. It will make your property to be getting higher rents. In doing this you have to spend effort, time and money. But you can take advantage of the tax breaks for reducing this overall spend.