The title to this post; Streamline Operating Costs to Increase Cash Flow sounds like such a simple statement. However, most people don’t really do the things that add up. Especially when we are talking multi-unit properties.
Ideas to streamline operating costs to increase cash flow
Credit background checks:
As a landlord if you are paying for these when screening tenants, stop. This is an expense that you do not need to incur. The reports are cheap enough now where you can have the prospective tenant supply it. Services, such as Experian’s tenant background check is offered for $14.95 and the applicant can set it to privately share with you for a 30 day period.
Maybe you inherited a property where the utilities were included. That doesn’t mean it needs to stay that way. As units turn over you can fill them with tenants that expect to pay their own utilities, just simply put it in the listing that tenants pay utilities. Thus slowly working that cost off your total operating expense.
If you happen to have a multi-unit property that isn’t separately metered, well there are a couple remedies for that. Sub-metering is an option, which you tend to see done more often with the water, and then the tenant gets billed directly from the town’s water department.
There are also smart meters, which can save you money even if you continue to include utilities in the rent as you will have up to the minute info on usage.
Think bad toilet flapper letting water run non-stop. Instead of it going on for many days or even weeks before the tenant says something you will see the spike in water use right away allowing you to repair it and save money that literally was going down the toilet!
Review All Your Operating Expenses
These are just a couple of examples to streamline your costs to increase your cash flow, but you should take a look at all your operating expenses to see what can be improved.
I could keep going, say you had a new roof put on – does it qualify you for a reduction in your insurance premiums?
So many variables and possibilities. Review your expenses to make sure you are not leaving cash flow on the table.
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