Increase Your Profits from Every Property
Having made the improvements suggested above (which will take about two months), you are ready to raise the rents in your building. Here are a few guidelines I find work well in all types of apartment houses:
• Tune in to today’s economy by ridding your mind of ancient rent guidelines. Rents have risen enormously! Be sure you raise your rents to reflect the increases that have taken place.
• Never be afraid of losing tenants. You can always rent an apartment to someone else.
• The bottom line always is: You must make money on the property; otherwise you will have to get rid of it. So you must take action to raise the rents as soon as possible.
• Your tenants will usually be willing to pay higher rents if you improve the property. Thus, their sympathies will be with you when you take steps to improve your building.
• Be certain you know the numbers (income, expenses, profit) of your buildings before you raise any rents.
• Make careful computations so you’re sure that the increases cover all your expenses and give you a profit and positive cash flow (PCF). Never support a building by putting cash into it each month.
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