How to Increase Your Properties Cash Flow
There are several ways you can increase the value of your properties cash flow. But it doesn’t only have to be through your rental income. You could use other line item incomes to bump the value of your property. Sometimes you just have to be creative and offer additional value to your tenants to make their lives easier.
If you want to increase your properties value, you have to provide a better experience and more options to your residents. At The Green Organization we offer several different options to our tenants. Here are a few ideas you can incorporate into your property to increase its value.
First, the two line items that we always incorporate into our properties income are pet fees and pet rents. This is a great way to increase income through charging a fee and additional rent for allowing your tenants to have a pet. Typically we charge a one time non-refundable pet fee of $250 and a monthly pet rent ranging from $25-$50 per pet. This is mutually beneficial for the property owner and the tenant because a smaller pet would have a lower pet rent and a bigger pet would have a larger pet rent.
Another way that we bring in additional income is through Valet Trash. This is a luxurious amenity that allows stress free living to our tenants by providing daily removal of their trash. With this service, the owner pays a fee, but then makes a profit by up charging the tenant. Normally the fee can range from $12-$15 per unit and the upcharge for the tenant is somewhere around $20 or more per month.
Additionally, you can have separate meter utilities for each resident. This way the property isn’t paying for all the water, gas, and electricity. On properties you newly acquire that are existing structures, you’ll have to use the systems that are already in place. This is unless you spend money separating a specific lines for all utilities. However, if you build apartments from the ground up, you can design whatever systems you want. For example, on our new construction projects we separate the gas, electric and water for residents to pay. This reduces utility expenses down to common electricity. All in all, having separate utilities will increase your net operating income..
Lastly, you can also increase the value to your tenants and yourself by having additional features. This can include items such as laundry income, cable, or WiFi added into the property for everybody. And each individual tenant can take advantage of these features with a small fee. If you are creative you can build different types of other incomes such as application fees, forfeited deposits, late fees and many other items that will make your property more valuable.
Overall, there are ways to increase your properties cash flow that is mutually beneficial for you and your tenants.
Do you want to learn more about investments or all things real estate? Check out the rest of our blog!