PHOENIX, AZ. – Are you searching for ways to increase cash flow at your Phoenix Rental Property? If so, you’re not alone. Cash flow is on the mind of every property owner sooner rather than later and what they don’t know is that increasing cash flow can be easy especially if these 5 tips are followed.
Tip #1 – Make Interior Changes to Your Phoenix Rental Property
Although your rental home, condo, town home or apartment may have been a great Phoenix Rental Property in the past the reality is that if you haven’t taken the time to update the interior of your rental you could be turning renters away because your property just looks old and run down.
Some of the interior changes you should consider making include:
- Replace interior doors.
- Change interior light fixtures.
- Refinish or repaint kitchen cabinets.
- Replace or repaint the mailbox.
- Install a new toilet.
- Service or replace the A/C.
- Paint the front door.
- Improve curb appeal.
- Add a new vanity to the master bathroom.
Tip #2 – Reduce Vacancy
Reduce vacancy by starting with a more conservative price. Once you have solid renters in place, then stick with 1-year rentals and make rental increases each year using minimum 5% increments.
Vacancy KILLS ROI and cash flow. It’s not worth it to try and squeeze an extra $100 out of a Tenant if that means another month of mortgage payments with NO rent. Do the math, most of the time $100 extra but vacant an extra month, actually loses you money.
Tip #3 – Increase the Fees You Are Charging
Another way to increase cash flow at your Phoenix Rental Property is to require prospective renters to pay an application fee because this eliminates the cost that you might currently be paying for credit reports or background checks and can boost your ROI by $300 over a 4 year period.
You should also consider increasing your late fee as well while giving a longer grace period at the same time. People always complain about late fees, but one thing we have found is that if we extend the grace period to 7 days, but increase the late fee from standard 10% charges to maybe 15% or 20% (check with local’s laws for maximum charge allowances) then it cuts down on the “excuse” factor with a Tenant.
You get your rent on time, and if the Tenants don’t pay within the grace period, then they agree to pay a hefty fine. It’s hard to argue with a landlord about a late fee when you have a full week to actually turn it in…lost in the mail or I don’t get paid until the 5th become obsolete.
Tip #4 – Streamline Costs by Doing Business Electronically
There are few things nowadays that need to be “mailed” or paper printed. Rent can be paid online; notices can be completed online (with few exceptions). Some companies even charge a service fee for those Tenants who pay online or don’t use emails (meaning everything needs to be physically mailed or posted). $8 check fees and forwarding all postage charges to a Tenant are some ways benefit online payment.
Tip #5 – Hire an Experienced Phoenix Property Manager
Besides the recommendations mentioned in this article one of the very best things you can do to increase cash flow at your Phoenix Rental Property is to hire an experienced Phoenix Property Manager because we will save you the time, money and hassle of managing your rental properties yourself, make sure that your property is rented to the most qualified tenant, and guarantee that you’re paid on time.
To learn more about our property management services contact us today by calling us at (602) 765-4750 or click here to connect with us online.