Its a classic line and one I refer to a lot – and I love the movie too (for more information, you’ll just have to sign up to my exclusive ££99 value ecourse).
So what does it all mean?
Well, for most people in business cash is king. Without cash, you can’t pay your bills, you can’t invest in your business, you can’t save money for emergencies, you can’t pay yourself!
Yet, many property investors struggle along from month to month losing money hand over fist whilst trying to get the next cashback deal which even then just gives them another debt to worry about – with no real regular cashflow to show for it.
How do you get out of the vicious circle once you’re in it? Well, its hard but you need to start by focusing on revenue-earning opportunities and ways to improve your cashflow.
One way is by increasing your revenue from your tenants – rent is one way, but there are many others.
How do you increase your rent? Well here are some ideas:-
- at the end of six months, you can review your rent and put increases in where appropriate to individuals
- you can see if you can move a tenant to a better room or house and then get more rent for the room or house they left behind
- you can ensure that when you do pro-rata rents, you calculate it exactly according to the month you are in (try it, it works out to about a tenner a month difference; not a lot but if you have 10 move-ins in a month, thats an extra £100 in your pocket)
- you can charge administrative fees for moving people in, inventory checks, doing bank references for them, forwarding post – you name it, there’s always something you can charge for
- you can add additional services into your house which you can charge for (how about SKY TV, an ironing service, gym membership etc)
I’ll be talking about this and other revenue genereating ideas on Tuesday, 24th June at the Northants Property Meet. Its a networking event I’ve held for the last 3 years and tends to get booked up fairly quickly (we like to be a bit smaller and intimate than most networking events so 30 is our usual maximum). If you’re interested in finding out more, get along to www.propertysuccessgroup.com and sign up for the evening. It would be great to see you there.