27 December 2012

Tips to Increase Your Rental Property Cash Flow

Real estate investing is one of the most powerful way to generate income. Rental costs from well managed properties will be sufficient to pay your mortgages and expenses while generating decent profits.

An additional benefit for investors looking to build retirement income is that they can purchase and held their properties in individual retirement account. Whether you are a single property owner or a multi-property owner, you can maximize your cash flow by:

1. Mortgage interest rates are available at the lowest rates ever in the history. There are lenders who offer 30 year loans for a lesser APR for single family properties.

2. Including utility fees in rent is one of the drawback for investors because the natural gas prices increase often and the utility bills come up to $800/month.

3. Most of the owners hesitate to raise the rental rates for long-term tenants even though the current rent is well below the market rate. The main purpose for increasing the rent is to cover those repair costs.

4. Its always good to get a home warranty coverage in the rental agreement. The owner should pay the premiums while the tenant should pay for the service calls. This could save a huge amount of repair costs and in turn improves your property value.

5. You can reduce your maintenance costs by preferring a skilled worker. For works like roof repairs, you can deal with a property management company who can offer you decent rates.

For more information about real estate investment, visit rementor.

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