How can you stay afloat as a landlord when a big expense comes your way? If the AC goes out at your property, it could cost $5,000 to replace. If a tenant stops paying their rent, you will lose several months worth of rental income, plus the legal fees it takes to evict them. No one knows when an emergency will happen, but if you are prepared and have positive cash flow on your rental property, you can make it through any emergency that comes your way.
What is Positive Cash Flow?
Cash flow is simply what you bring in on your rental income minus any costs your property incurs. If your tenant pays $2000 each month in rent and you take out $1500 to pay your mortgage, taxes, maintenance, and any other associated costs, your positive cash flow is $500. When you have positive cash flow you are not only making a larger income; you can be better prepared for emergencies. Your Fort Worth rental property management team can help you figure out the exact numbers for your situation.
How Can You Increase Your Cash Flow?
There are a few key ways you can increase your cash flow.
- Tenant qualifications: highly qualified tenants are more likely to keep up with rent payments and take care of the home.
- Market rent rates: are you charging enough for rent? Look around your neighborhood to compare what other rentals cost and see if your rental is priced correctly.
- Proactive maintenance: large ticket maintenance items like new roofs or appliances will hurt your cash flow. Putting the time and effort into regularly maintaining these items will extend their lives and cost you much less in the long run.
How Fort Worth Rental Property Management Can Help Cash Flow
Many landlords think self-managing will save them money and increase their monthly cash flow. What they don’t take into account is are the complexities that come with property management. Specialized Property Management Fort Worth will help your cash flow by reducing vacancy days, setting the right rental price, scheduling maintenance and inspections, and avoiding costly regulatory fines. To learn more call Specialized Property Management Fort Worth today.