With the current state of the real estate market, there’s no doubt that investing in properties is one of the most lucrative ventures available right now. But to get a high ROI (return on investment) and a substantial profit, you need to find the right Sonoma property management company to help you out.
One of the key aspects of property management is cash flow. Generating a positive cash flow is imperative to ensure the success of your investments. That’s why we’re here to be of service. As a Sonoma County property management company, we can provide you with the services you need to obtain a positive cash flow.
To achieve this, here are three strategies and best practices we recommend.
1. Buy a Property at a Low Price
As an investor, the first thing you need to note is the price of the property. This is an integral variable that determines the profitability of your venture. The lower the price, the less credit you will need to pay.
Our role is to find excellent properties sold at competitive prices. In doing so, we can provide you with an unparalleled advantage to see your profits grow.
2. Increase Rent
To ensure a positive cash flow from your property, the rental price must never go below the price you bought it at. Likewise, it should meet the current market prices. That said, you may want to consider increasing the rental price over time to maintain a consistent cash flow. But the question is: how do you do this reasonably?
While there are several ways to go about it, we find that the simplest strategy is to execute small-scale renovations to increase the value and comfort of your property. Having a furnished property is often more expensive than its unfurnished counterpart, making supplying furnished units a solid strategy to explore.
3. Reduce Your Costs
Cash flow refers to the amount of money that goes out of your account versus the amount of money that comes in. The goal is to have more money coming in than going out. One of the easiest ways to guarantee this outcome is to minimize your expenses every month.
As your partner, we can work to identify features in your property that you can cut out or bill to the resident. In doing so, we can help you cut down on costs and focus on attaining a high ROI.
Hire Sonoma County Property Management Professionals
Property management is an essential part of every property investment. The only way to generate income and maximize cash flow is to have the right strategies in place. With our expert help, we can guide you in making the right decisions for your rental properties.
Contact us today to get started on growing your investment.