The Antioch rental market provides a number of great real estate investment opportunities, but it’s not always easy to generate positive cash flow, especially if you recently bought your property. The market is expensive and the interest rate on your loan, if you have one, may be higher than you’d like.
There are some good strategies that we can recommend for optimizing cash flow. The way you’ve financed your investment will have an impact on what you earn versus what you spend, but ultimately the cash flow you’re earning comes down to rental value and what good residents are willing to pay for your property. If you want to optimize cash flow, you need to increase income and reduce expenses.
Easy enough. Here are some advanced strategies to help.
Invest in Improvements and Upgrades
High quality residents increase your cash flow because they’re easier to manage and they pay rent on time. They are better communicators, they help you take care of the property, and they tend to renew their lease agreements year after year.
To attract those favorable residents, you need to make your properties stand out from the competition.
This means cost-effective upgrades and improvements. A total renovation is likely unnecessary, but if you want to attract and retain the best residents, you need to make some simple and cost-effective upgrades and updates. Not only does this give you a better class of resident, it also allows you to increase what you’re asking in rent. Residents will pay more for hardwood or tile floors, stainless appliances, and attractive curb appeal.
Make Your Antioch Rental Property Pet-Friendly
Allowing pets is an easy and quick way to increase what you’re earning in the short term and the long term. More than half the Antioch resident pool has at least one pet. If you decide you’re not going to allow them, you can face longer vacancy times. There’s likely to be more turnover with residents who don’t have pets. That hurts cash flow.
When you welcome pets into your property, you also have an opportunity to charge a pet fee and pet rent. Pet fees are typically $200 or $300 per pet. Then, you can also ask for pet rent in the amount of $25 or even up to $50 per month. Residents are willing to pay this for the joy of living with their precious pets.
Increasing Cash Flow through Responsive Maintenance
Optimize cash flow by paying attention to maintenance and using high-quality, cost-effective vendors and contractors when work is needed at your property.
A great property maintenance team will make a huge difference in what you spend and what you earn. Look for preferred vendors who will offer discount pricing in exchange for a steady volume of work. You’ll benefit from that relationship, and you’ll keep costs down. You’ll also need a 24/7 maintenance hotline that residents can call when something is wrong. Your residents want to be heard, especially when something isn’t right. If you’re willing to answer those calls and ask the right questions to diagnose the problem, your responsiveness will be rewarded with higher profits.
Work with Antioch Property Managers
A great way to increase your property’s cash flow is by working with a professional Antioch property management company. Property managers understand the demands and needs of residents, and we also have the tools, resources, and systems in place to help you earn more and spend less.
We have access to data that can help you price your property profitably and compete with others in the market. Your maintenance, vacancy, and turnover costs will be lower when you partner with an Antioch property manager.
Let’s talk about your cash flow and how we can do better. Contact our team at PURE Property Management.
