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Property Management Blog

5 Tips for Maximizing "Passivity"

Rental income is often thought of as "passive income" allowing owners opportunities to travel, spend more time with family or, in some cases, cut back on the day job. Here's the truth about rental income: it isn't always passive. At least not every month. Vacancies require a minimum of twenty hours of dedicated work in order to acquire a new tenant.

Maintenance is an ongoing process and the occasional nightmare tenant can leave the most experienced landlord in the least enjoyable situation. However, rental income still remains the most predictable source of income and the strongest return on investment when you know how to generate the cash without draining your bank account.

River City Rentals is here to help owners maximize the "passivity" of their rental income portfolios. It doesn't have to be difficult, especially if you are working with a property management company such as IPS who understands five simple tips:


Only invest in rental properties that will generate strong, consistent income. Hiring a property management company is a must for success and you need a property which will allow you to afford the professionals while providing a handsome profit simultaneously. You'll need to do your investment homework up front and you might be waiting a while before you find the right property, however you must be able to generate good cash flow on your rentals.


Don't even think about purchasing low-end, "cheap" properties. You will only attract the tenants associated with them. Plan on repairing multiple property damages, chasing down rent and appearing in court. Get used to being referred to as a "slum lord."


Passive income is most successfully generated when solid tenants enjoy staying put in well-maintained rentals for long periods of time. In other words, don't cut corners when it comes to applicant screenings. Dig beyond the usual credit report and background check and learn about an applicant's eviction history, employer, and income. Don't take anyone's word for anything and do your homework. Perform a nationwide data search and eliminate potential tenants who "exaggerate" or flat out lie during the application or screening process.


Tenant turnover is expensive and longer lease terms can often serve as a means of retaining good tenants. Such terms will allow tenants to get a bargain by locking in rental rates that would normally be raised at the end of each one-year lease term. Consider the long-term benefits to both tenant and landlord.


Work to build good relationships with solid tenants. Focus on renewing leases with the reliable renters rather than acquiring new ones. Send birthday or thank-you cards, offer special services, be sure to greet them at every opportunity and show that you care about them as people and not just dollars. Make improvements and repairs in a timely fashion while providing ample notice to the tenant.

Passive income isn't a result of passive landlords. If you want the dollars, you must earn them. Contact River City Rentals today to discuss how you might best maximize your rental income.

For more information contact River City Rentals today!