The first way to increase cash flow is to raise the rent.
Tenants realize that the cost of operating and properly maintaining the house increases each year and they will accept a reasonable cost -of-living increase at least once a year.
The second way to increase cash flow is to decrease your operating costs.
Prepare a simple budget each year and look at every single one of your current expenses. For example, if you did not include the water bill or the utility bill as part of the rent, look at ways to cut these expenses by replacing low consumption water toilets and shower heads, change the thermostat to a programmable one, replace grass in areas where you can and replace with trees, bushes and flowers
The third way to increase cash flow is to have your tenant pay for utility costs.
If you own one property or several properties insure that each tenant pays for their own energy. Contact your local utility and water company to set up separate meters for each tenant. There is no incentive for a tenant to conserve if these bills are part of the rent.
The forth way to increase cash flow is to appeal your property taxes.
Each year your house and land are appraised by various government agencies. The higher the assessed value of your property, the higher your property tax bill. Follow the procedures given to you when you receive your tax assessment of your property.
The fifth way to increase cash flow is to reduce turnover.
Take the time to properly screen and select your tenant and look for someone who intends to stay for a long time. Treating tenants respectfully and responding promptly to their reasonable requests leads to longer tenancies.
The sixth way to increase cash flow is to refinance your rental property.
Refinancing is simply taking out another loan to replace the one you currently have on your rental property. If the interest rates available on new loans for similar rental properties decrease below your current loan rate, you may be able to refinance.
The seventh way to increase your cash flow is to offer a lease option.
A lease option is an agreement that allows the tenant the right to purchase the leased property at a predetermined price for a certain period of time. The tenant is able to become a property owner even if he/she is short on money for a down payment.
The eighth way to increase cash flow is to upgrade your rental property.
Rental properties can become stale and dated and not very competitive when their curb appeal falters compared to the newer rental units in your area. By installing new carpets, sprinkler systems, hardwood floors, fresh paint with lighter and brighter colors can make a difference.
The ninth way to increase cash flow is to pre-lease your rental unit between tenants.
If your tenant gives you notice that he/she is leaving you will want to ask for permission to inspect the rental unit as soon as possible. You can then prepare a list of work you need to do in the unit to bring it up to a rent-ready condition and schedule all of the work for the two or three days right after the tenant vacates. In the meantime you can advertise the rental unit and upon giving the current occupant proper notice, show it to interested prospects while the current tenant is still in the unit. this way you get your property pre-leased and the new tenant moved in within a week or so, decreasing your loss of rent and increasing cash flow.
The tenth way to increase your cash flow is to take advantage of tax depreciation.
Depreciation is an accounting concept that offers the advantage of deferring taxes to rental property owners. It allows you to recover in tax deductions the basis of your rental property over a certain number of years. See your tax expert for more information on this way to increase your tax flow.