Cash flow is the name of the game for landlords. Positive cash flow ensures your rental properties turn a profit, while negative cash flow indicates your investments are nothing more than financial drains. And while there are literally dozens of factors that influence cash flow—including the types of properties you invest in, the rates you set, and how you screen tenants—it ultimately comes down to your approach to rent collection.
With the right rent collection strategy in place, you can ensure you always get paid on time and in full.
The Importance of Rent Collection
Owning rental properties is expensive. Almost every transaction associated with owning a rental is classified as an expense. If you study the bank statements associated with your property, you’ll notice that 90 percent of transactions are debits from your account….