Tuesday, January 28, 2014 / by Rummy Dhanoa
"Poor cash-flow management is causing more business failures today than ever before," declares Philip Campbell at Inc.com. These failures are often attributed to a lack of cash flow, but Inc.com claims it is the mismanagement of the cash flow that poses the real threat. This is an especially salient issue for property managers who, in spite of a full building, may be facing empty bank accounts in the middle of each month.
Target the Cause of the Leak
Before you can fix your cash flow problems, you need to figure out where the leaks is. Are tenants refusing to pay the rents or are the rents too low? Look at other rentals in your area and make sure that your prices are comparable. Keep in mind, however, that a responsible tenant can be worth more than a couple of hundred dollars each month, and try not to drive away any stable tenants with aggressive rent increases.
Are your buildings only half full? Vacancies are your worst enemy, and if your building is harboring a lot of empty space, it may be time to mix up your advertising strategy.
Perhaps maintenance issues are causing the issues. Can you save costs by doing some of the work yourself? Do you need to spend more on routine maintenance so you can spend less on repairs?
Tighten Your Application Process