You Are Killing Your Cash-Flow...Stop Running Into These Mishaps

Feel like you can’t make a profit on your properties? The problem may be that you’re not maintaining a proper balance. Learning to properly juggle the following three priorities will result in large profits in the long run.

Repairs

Putting off repairs till a later point can come back and bite you. If left unattended for a long period of time, a simple leak can lead into a much larger problem.

The issue might be that you don’t have a set schedule. Things can get kind of murky if you just keep telling yourself, “I need to fix that leak soon.” Instead, set a clear deadline for yourself: “I will have that leak fixed by the end of the month.”

You may want to start a separate online calendar for each property, or even buy a paper calendar. Sometimes physically seeing deadlines written in front of you can be an effective motivator. Or hire a trusted property manager who is responsive when it comes to repairs

Not Properly Screening Tenants

Getting a bad seed in your property can kill your cash flow. If you are in a non-landlord friendly state, the eviction process can take months, and the tenant most likely is not paying during that time period.

But make sure you always run background checks on all potential tenants, despite how much you feel like you need to rent the property right now.

Property Turnover

I cannot stress this enough: If your current tenant plans on moving out, you should have a game plan for getting the property rented as soon as possible. If you have to go in and make some renovations, then get in and get out. Every day you have that property vacant, you are losing cash flow.

Also, if you are using leverage on the property, that source still wants to be paid, whether or not the property is rented.

However, don’t let this sense of urgency force you to rent the property without making necessary repairs and doing proper background checks on tenants. First things first. Maintaining a balanced attitude can be key to avoiding landlord pitfalls.