When you invest in Austin rental properties, your goal is usually to make money.
While long-term returns are a major benefit to real estate investing, you also want to get some short-term gains from health cash flow. Today, we’re sharing a few of our favorite tips for how to increase what you earn and decrease what you spend.
Price Your Property Correctly
A great cash flow experience starts with the right rental price. You might assume that this means charging as much as possible. You do want to set your rental price at a level that’s going to make you some consistent cash every month, but you don’t want to be greedy. If you hold out for an extra $100 per month in rent, you’ll find that your home is vacant longer. That’s actually going to cost you money. Don’t overprice the property. Set your rent price competitively so you attract great tenants and get the home rented as soon as possible.
Work with Great Vendors
Your home is going to need routine maintenance, and there will also be emergencies from time to time that will cost money. If you have a great team of vendors in place, you’ll increase your cash flow by making cost-effective repairs that don’t destroy your budget. Work with licensed and insured professionals you can trust to help you protect the condition of your asset.
Make Small Updates and Upgrades
If you want to increase your cash flow, make a few inexpensive but important upgrades to your Austin rental property. New floors, energy-efficient windows and appliances, and a fresh coat of paint on both the exterior and interior will breathe new life into your property. It will also attract better tenants and allow you to increase your rental price. All of that leads to more cash flow.
Focus on Tenant Retention
Vacancy is expensive, and tenant turnover is even more expensive. Not only do you have to worry about not having any rent coming in, you also have to pay for maintenance issues, cleaning, landscaping, and utilities. Avoid these turnover costs by holding onto good tenants. Increase retention by:
- Responding quickly to maintenance issues.
- Demonstrating appreciation and making tenants feel valued.
- Keeping communication lines open.
- Operating as a compassionate landlord who cares about the tenant’s rental experience.
- Making reasonable rental increases when the lease renews.
Work with Professional Austin Property Managers
Professional property management increases your cash flow. Many investors and owners find this doubtful because of the monthly management fee and the leasing fee. But, with professional managers taking care of your home, you’ll face fewer vacancy costs. You won’t run the risk of placing a bad tenant who causes problems and damage. You won’t make expensive legal mistakes, either. Renting out a home is complicated with all the fair housing laws, not to mention the requirements of the Texas Property Code. A good way to destroy your cash flow is by not understanding the difference between a pet and a service animal, for example.
We’re ready to help you earn more and spend less on your Austin investment property. Contact us at AustinVestors to learn more about what we can do for you and your real estate portfolio.