Los Angeles County is one of the top markets for real estate investors. However, constant maintenance and upkeep are required to keep tenants happy. Several rental investment owners end up spending large amounts on maintenance, hence ending up earning a much smaller profit from the property. The point of investment is lost if the cash flow generated is less.
It is necessary to make sure that you constantly upgrade your rental to suit your renter’s needs; happy renters mean a good and steady cash flow. Here are a few ways in which you can make sure that your LA County rental cash flow increases.
If you haven’t raised your rent in the last year or so, it is high time you do that. The best way to increase your cash flow amount is by increasing the amount of rent that you get from your tenants. While increasing your rent, you must be fully aware of the rent control laws, rent protection laws, as well as the LA rent regulation rules. Since landlords can increase the rent of their rental properties once every 12 months, make sure to do so, providing a notice to your tenants at least 30 days in advance.
Prompt Repairs and Maintenance
California law requires you to keep your rental property in a good condition. This means taking care of the maintenance and repairs of the place. By promptly fixing any minor damages to the unit, you make sure that the problems don’t escalate and cause monumental financial and structural damages in the long run. Small issues, if not fixed on time, can end up costing more in the long run.
Alternative Income Sources
Providing additional services, amenities, and upgrades to your tenants is another way of maximizing your cash flow. Yes, it will cost you a little more to maintain, but you can offer these amenities to your tenants at an additional amount. These alternate sources of income can include additional storage area, garage space or parking, furnishings in the house, appliances like laundry and dryer. This can be a welcome addition to your tenants since these amenities help in fulfilling many of their day-to-day needs.
A well-planned budget for your rental property can help cut down any unnecessary expenditure. For e.g., you can switch your service providers after carefully analyzing their service costs, or opt to use energy-efficient and affordable materials.
You can also save a significant amount by reducing your operating expenses by updating HVAC systems, adding insulation to reduce heating costs, and fixing electronic appliances.
As a property owner in Los Angeles, you are allowed to deduct reasonable expenses from your annual taxes. Deductible expenses include costs of repairs and maintenance of the rental property. Tax deductions can make owning an investment rental unit more affordable, especially when you have a mortgage on the house.
According to the IRS, you are allowed to deduct the interest that you pay on your loan. Other purchases that improve your rental and add value to it can also be tax-deductible. Any travel expenses or trips that have been made to manage your rental property, as well as home office expenses, can also be written off. These deductions help you get tax discounts and maximize your cash flow.
A property manager can help you better manage your investment rental, and its accounting and taxes. We, at Bell Properties, help you optimize your real estate portfolio and generate an increased cash flow from your rental property.