What Are Landlord Cash Killers?
Vacant means you are not making money. When your rental homes sit unoccupied, your cash flowing in, stops. You are actually spending more money than you are making because now you are paying utilities, landscaping, maintenance and other additional costs.
Stay on top of knowing when your renters are moving out and the next ones are moving in. Try to minimize the days inbetween renters as much as possible.
Pro Tip: Keep Your Vacancy Rate As Low As Possible At All Times
When your renters move out, the turnover can be timely and costly. Having a turnover plan in place is crucial to maximize your down time.
It’s best practice to have contractors lined up and scheduled for painting, maintenance items and cleaning as soon as the renters move out. Scheduling your contractors in advance will help maximize your occupancy while decreasing your vacancy.
Pro Tip: Schedule A Move Out Walk Through So You Can Judge The Turnover Time
Short Term Leases
Short term leases mean more days your rental property will not be acquiring rent money. Yes, short term leases might have a higher rental rate but cross compare the higher rental rate with the turnover costs and the days your rental sits empty. No sense in asking for more when your bank account will actually see less.
Longer lease terms mean less turnovers and less time your rental homes sit vacant without profit. The longer the lease term length the longer the tenant stays at the same rental rate, in turn this is a win-win for both you and your tenants.
Pro Tip: Avoid Short Term Leases!
High Rental Rate
Understanding what tenants are looking for and knowing the appropriate rental rate is ideal for your property. Better pricing leads to higher rental income. Take the time to do your research on other rental homes in the area, check out the amenities and price point. Don’t miss out on renting because your asking rental rate is too high.
Pro Tip: Know The Right Rental Rate For Your Property
How Can Landlords Reduce Costs?
Leave your property taxes to the professionals. There are several deductions available for your taxes as a landlord and these tax deductions add up!
Continuing to upgrade your rental homes is the best way to keep your homes renting and your renters happy. When upgrading, choosing eco-friendly upgrades might cost a little more now but will save you big in the long run.
If you have more than one rental property, upgrading more than one home at a time may also be costly upfront but will save you in the long run. Especially when you buy in bulk. Usually, when buying the bigger ticket items like appliances you are far more likely to get a big discount if you buy more than one at a time.
It is imperative to have an emergency fund. You never know when a pipe will burst, an HVAC system will stop working or something breaks. Having money saved up is a great way to prepare for unexpected landlord costs.
Plus, it never hurts to have contractors on deck. Having the contact information for an HVAC, plumber or electrician company on hand will help save time later when emergencies arise.
Keeping up on minor maintenance items will prevent you from having to do major repairs as frequently. Touch-up jobs here and there will help keep your paint looking better for longer and routine carpet cleanings can prolong the life of the carpet.
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