As a Real estate investor/property manager, it goes without saying that you’d like to maximize your earning potential and increase cash flow…..as they say “CASH IS KING”. You will see below I have suggested some very easy, manageable changes that you can implement in very little time to increase cash flow and make your investment property as profitable as possible.

1.) Sell Existing Services

When you add new profit centres that don’t require high start-up costs or significant upkeep on your part, you can greatly increase your cash flow. For example, if your investment property has extra locker space consider renting it out to generate more income. If you have a large building with a common area room consider promoting a games room for party rentals. If you have onsite parking you may want to charge for a sport or perhaps just for an additional spot. If you have a separate detached garage rent it out separately for storage and additional income!

2.) Add new amenities or services to increase cash flow!

Another way you can capitalize on your existing investment properties is by looking into other revenue streams, such as selling advertising in your or on your building. Antenna leases are another great option; in prime urban areas, cellular companies have been known to pay big $$$ to install a cell antenna on a property. As well, rooftop leasing for solar applications is picking up in popularity. You could add coin-op laundry services. You could add vending machines; the list goes on and on. With a little creativity and action you profits can increase greatly.

3.) Implement Digital management

A simple way to boost cash flow is to reduce the costs associated with printing and mailing invoices, etc, is to implement some paperless strategies. By going digital, you’ll be able to reach tenants more effectively and efficiently, while saving money and increasing profits. All you’ll need are your tenants email addresses. If you haven’t already done so, you should request new tenants email addresses on your application forms.

4.) Make It Easier For Your Tenants To Pay

As technology grows, cheques are becoming an outdated form of payment. By adding additional rent payment methods for your tenants, such as credit card, Interact, automatic bank withdrawal, or email money transfer, you not only provide a more secure means of payment, but you eliminate having to wait for cheques to clear.

5.) Issue Important Reminders

Many tenants are late paying rent simply because they procrastinate. By sending monthly rent statements 10 days before rent is due, tenants are far more likely to pay on time. Electronic statements and reminders are preferable, as they keep paper costs and administration time to a minimum.

6.) Make Tenants Responsible

Any chances you get to make a tenant pay their own utilities TAKE IT!!! If the tenant has to pay for their own hydro they will be more diligent in turning off the lights and T.V when not in use. If they have to pay their own heat they will close the doors and windows when it is cold out instead up cranking up the heat. As my Uncle Tom use to say “close the door; you are letting all my nickels and dimes out”. I did fully understand what he meant as a child…..BUT I DO NOW!  By making your tenants responsible for their own utilities you will save a bunch of nickels and dimes….and trust me they add up!

I hope you take action and implement some or all of these simple changes to generate more cash flow with your investment property. By making just a few changes you can quickly increase cash flow and improve profitability. As a real estate investor/property manager, your property should work for you. Ask yourself this simple question:

If I make this change to my property will it bring me closer to my goal? If the answer is YES than DO IT! If the answer is NO than quickly move on to something more productive! J

I hope this information serves you well. More great info coming soon!

P.S Please leave a comment below. Your feedback is important to us!

Sincerely,

Jeff Woods,

Woods & Mazzulla properties

www.wamproperties.com