Whether you are self-managing your rental property, or you have a property management company doing the dirty work for you, you should be constantly thinking about how to improve your cash flow.
2 ways to improve cash flow.
There are really only two ways to improve your investment property cash flow;
- Increase your revenue (rents)
- Decrease your expenses
Top 5 ways to increase your rents.
Here are the top 5 ways to increase your rental revenue. Of course there are many, many other ways to do this, but here are a few ideas to get you started;
1. Take advantage of zoning. This could mean building a garage or laneway home, or a basement suite.
2. Short-term rentals. If your building allows it, fully furnished, short-term rentals are an excellent way to increase your rents. In downtown Vancouver, a one bedroom apartment may rent for $2000/ month on a fixed term lease, but you may be able to get $150-$200 per night on a short term basis using sites like Air B n B or VRBO. There is the potential to triple your revenues if you play your cards right here.
3. Student rentals (by the room). Students are a great way to boost your rental revenue. Add a partition to the living room of your 1 bedroom downtown Vancouver condo and you may be able to double your income.
4. A new, updated kitchen, bathroom, flooring, and paint can go a long way to attracting better renters who are willing to pay more for your rental property.
5. Keep up with the market. Make sure that your rents are keeping pace with the market when tenants turn over, particularly in rapidly appreciating markets such as Vancouver.
Looking to boost your cash flow? Contact our property management company here to learn just how you can do that.
Chris Stepchuk
June 23, 2017