8 Proven Ways that Tenants Can Make You Rich
Learn How to Invest in Real Estate and Attain Positive Cash Flow
If you want steady positive cash flow, you need to look no further than your tenants. Nothing will kill your cash flow more than vacancies. Do you want to learn how to invest in real estate to maintain your tenant base and produce stable cash flow?
Here are 8 great ways.
- Screen potential tenants. Doing some work upfront will help prevent getting a bad tenant that will cost you money to evict and you’ll run the risk of not getting any money for that unit. Run criminal and credit checks on ALL potential tenants. Obtain their rental history and contact their current landlord to find out if they will provide favorable references. Perform employment checks to ensure potential tenants have the means to pay their rent.
- Establish rules regarding rent collection and stick to them! Do not waiver. If you are firm with tenants on collections, impose late dues and start the eviction process as soon as they are in default, they are more likely to pay as agreed, and it will keep those that are looking for a soft landing spot away.
- Even if you are just learning how to invest in real estate, create leases for your tenants and have put a system in place for renewals. This will give you a professional outlook with your tenants and ensure you are on top of who is renewing and who is leaving, so it will give you sufficient notice when somebody does decide to leave.
- Avoid having all your leases expire at the same time. It’s important to stagger them throughout the year. This will help reduce the number of vacancies at any one time, and minimize the impact on your cash flow.
- Don’t let leases expire in months that typically have the slowest moving activity. These are usually the coldest months of the year and around the holidays.
- Know your competition. Stay on top of what competitors in your area are charging for comparable units. In tight markets you may need to lower rents or offer incentives to keep stay competitive.
- Treat your tenants with respect, respond to all service requests in a timely manner and keep the common areas well lit, clean and safe. If tenants enjoy their living environment they will be less likely to move. People management is a big part of you learning how to invest in real estate.
- Maintaining high occupancy is not the only factor that attributes to positive cash flow, but it’s certainly an important one that you don’t want to ignore. Choose, manage and treat tenants well. Happy, rent paying tenants will help you attain financial freedom!!
If you want to learn more about how to invest in real estate or how it can benefit YOU, Contact us.