Strategies to Combat Negative Cash Flow Due to Property Tax and Insurance Increases

[Nazimuddin Basha]

Hey everyone,

I’m looking for advice on an issue I’m facing with my rental properties. Recently, my property taxes and insurance costs have increased significantly, turning what was once positive cash flow into negative cash flow. I’m sure some of you have faced similar challenges.

Aside from raising rent (which can be tricky depending on the market), what other strategies have you implemented to get back to positive cash flow? I’d love to hear any ideas or creative solutions that have worked for you!

Looking forward to your insights!

Thanks!

[Clayton Silva]

Hey Nazimuddin,

Sorry to hear about the increases, no one likes that for sure.  A couple ideas below:

- Have tenants pay utilities if they don't already

- Refinance into lower rate

- Increase rents (or convert to mid term/short term rental or rent by the room)

- Call the county tax assessor's office to ensure there was no mistake in the tax increase

- Call your insurance broker to get you other quotes

- Sell the property and 1031 into a better market that does not have those issues

- Self manage if you currently have a property manager

Hope these help!