I’ve been working closely with my property manager over the past several months. He’s been helping numerous investors across the country to turn their properties around and straighten out their cash flow.

Why? Cash flow investors have been screwed by property managers in Indianapolis for years now. Rents have not been collected for the investors, nor were they paid out to them. Bills have been paid by investors for repairs done only to find out later that nothing was actually done.

That’s why it’s been a huge relief to me to be dealing with someone that has some integrity. He’s done a heck of a job of managing the properties, and I hear it over and over again from our investors. Having a good property manager in place gives all of us the chance to move on and ensure we maintain good cash flow.

As he and I have been talking, my mind has been really focused on simple ideas to keep good tenants around. Keeping good tenants can solve numerous problems:

• It keeps steady cash flow
• Repairs are taken care of as needed because they’re reported
• Long drawn out vacancy between tenants is reduced and sometimes eliminated
• Clean out costs between tenants is reduced and sometimes eliminated

This can be huge. Reducing the headaches can help you move on to the next property and continue adding to your cash flow.

One idea we’ve talked about has to do with keeping your property looking nice while giving your tenants reason to take pride in it at the same time. When a property looks terrible, tenants don’t have any reason to take pride in paying their rent on time or in making sure the property is properly maintained.

Give your tenants ownership in caring for your investment property, and their home, by offering them a discount on their rent for keeping the property cleaned up. For instance, if the property is free of trash and clutter outside and the lawn is mowed regularly, they receive a $25 or $50 discount on their rent. A simple drive-by is done one week before rent is due, and if the place is as stated in the lease, they pay $25-$50 less.

Of course, you adjust this ahead of time to ensure the rent and your cash flow are both fair. You’re looking for win/win strategies.

Tuesday’s Tip: Give your tenants ownership while maintaining that steady cash flow. You won’t regret having gone above and beyond to keep that one good tenant in place.