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Don’t Be Dissuaded as Property Owner

If you’ve bought property and it’s not currently cash flowing (and maybe you’re even losing money), don’t get discouraged. Look for ways to cut costs and hold on to the property through this downturn. There are going to be ups and downs in the real estate cycle.

Even looking at simple things like replacing old light bulbs with ones that are more efficient or doing the landscaping and maintenance work yourself rather than paying another company to do it can go a long way in saving money. Put in recycling bins if you don’t have them or encourage your tenants to recycle – this money could go towards improvement of the common areas. There are some states who give you tax deductions or pay you to recycle.

Even reduce rental rates for a period of time to keep tenants, extend their leases through the downturn if they’re falling on hard times, or give them a break for a period of time that they can pay back.

Make changes that may cost money but will keep or gain you more tenants, such as replacing the washing machines and dryers. Plus, you might be able to purchase machines that are more efficient and save money. Be observant, too. Do you see your tenants using the laundry mat down the street? Maybe you need to add a few more.

Allow for pets - make compromises with new tenants who have good credit. Consider offering a move-in discount if they sign a lease for a certain length, sat one or two years.

Look at some remodeling:

Residential remodeling is often said to be counter-cyclical, falling when spending for new housing is on the rise and rising when new housing falls. While the relationship between remodeling and new housing is not that simple, remodeling expenditures are less cyclical and more stable than spending for new construction. Remodeling activity can therefore be something of a buffer for the furniture industry in the normal ups and down of the housing market.

Fortunately, this buffer is holding true even in these very abnormal times for the housing industry. In fact, expenditures on improvements and repairs for residential properties (residential remodeling) declined just 1 percent in 2007 to $226.4 billion. This is in sharp contrast to the 25 percent decline in housing starts and 15 percent decline in total home sales (for both new and existing homes) during 2007.

More on Remodeling

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