What is Cash-On-Cash Return? Cash-on-Cash return is considered one of the most important return on investment calculations in real estate. Cash-on-cash return measures the cash income earned relative to the cash invested in the property. This is important because it is vitally important to get back what you put into a rental property, this is exactly why it is called an investment. How to Boost your Cash-on-Cash Return 1. Take a look at your investment property The answer to growing a larger cash-on-cash return may be right in front of you- and it may be easier than you think! Simple improvements can go a long way in increasing the value of your property. Apply a fresh coat of paint, or put up a privacy fence in the backyard. When you are ready to tackle a little larger project, have a new roof installed or upgrade the HVAC system. Even simple amenities like a smart home thermostat can add value. 2. Avoid turnover costs It is very important to thoroughly screen tenants before approving them for a home. Verify their income, conduct a credit screening report, and check their rental history. 3. Team up with the neighbors Improving the neighbrohood can make a huge difference in your investment property. Team up with neighbors to fix up an old community playground. You could also organize fun community events such as a neighborhood yard sale.
Don't overload an outlet! Plugging too many things into one outlet can cause serious electrical issues, and may even cause a fire. For regular household outlets, never plug more than two appliances in, and each outlet under 1,500 watts. Only use an outlet designed for multiple plugs, and know the amount of power you are placing on a circuit. Get a natural tree! Putting up a natural tree has held tradition for many families all across the nation. They smell great, and truly embody the holiday season. However, natural trees can shed needles and leak sap. Be sure to keep an eye on your tree and maintain it regularly while it is up. Keep an eye on candles! Holiday scented candles are a big trend during Christmas, but they can also be a safety hazard. Be sure to display your candles on a solid surface so that it may not fall down. Also be sure to always blow out candles before leaving the home. You may want to consider safer alternatives, such as a diffuser. Some landlords will not allow candles at all in a rental home, always be sure to check your lease agreement beforehand.
Listed below are a few benefits of using a property management company. If these don’t change your mind, give us a call to learn more! 1. We find high-quality tenants for your home. We thoroughly screen each applicant before making a decision. We investigate an applicant’s credit report, income, criminal records, and rental history before approving them for a property. Having a qualified tenant leads to timely rent payments, long term residency, and minimal wear and tear on your property. We treat each property like it is one of our own, we only want high-quality tenants for each and every property we manage. 2. Less legal issues Because we only want high-quality tenants, this typically leads to less legal issues. Forget about having to call the sheriff’s department to remove a tenant or spending hours of your time in court. No one wants to go through an eviction, we do everything in our power to avoid that process. 3. Short Vacancies Because we are property management experts, we know how to rent your home fast. Our in-house maintenance team prepares your home for rent with high efficiency, making sure it is always ready for a new tenant. It is also crucial to determine the right price, and doing so requires expert knowledge of the industry. We thoroughly scan the rental market to make sure your home rents at the optimal rate. If you are interested in learning more about our property management services, call us today at 662-536-3068 or visit our website at www.northmshomes.com.
