The Impact of Rent Payment Frequency on Cash Flow
When it comes to property investment, maintaining cash flow is king and utilising a good property manager who can improve and maximise it should be a priority.
George Kafantaris from Australian Property Investor says it’s not just your accountant that can boost cash flow from your property investments, but also a good property manager.
One of the first things your property manager can do to get things going is implementing an increased frequency of rent payments.
Opting for weekly rental payments rather than monthly can save on interest costs if you can align them with your mortgage repayments and make them weekly also.
Capitalising on Rental Market Trends for Increased Returns
While on the subject of rental payments, property managers should be keeping a finger on the pulse of the market, especially in rental shortage periods like much of Australia is in now, to capitalise on the potential in rental price growth and maximise rental returns.
Minimising Vacancy Periods for Continuous Cash Flow
A third way for property managers to boost cash flow on investments is to minimise any periods of time the property lays vacant.
A well-organised operator can manage lease renewals without interruption and can begin any re-leasing process early to keep your property tenanted for as many days as possible.
Efficient Management of Property Expenses
Another source of cash flow for property investors is making sure water consumption charges incurred on the property are accurately tracked and passed onto tenants.
Maintenance and Repairs
A good property manager can also use their years of experience, negotiation skills and a network of trusted tradespeople to keep on top of maintenance and repair costs, which can vary greatly in the marketplace.
Proactive Property Care to Avoid Costly Repairs
On top of this, your property manager can get proactive and nip maintenance issues in the bud before they deteriorate into worse problems and costlier repairs.
The Role of Property Management in Insurance Claims
Finally, if there’s ever an insurance claim on your investment, your gun property manager can again use their experience and tradespeople networks to quickly manage the claim and repairs to minimise the impact on cash flow.
If you are interested to learn more, reach out to our Perry Finance team.
