All-inclusive rentals - Thoughts?

[Charles Large]

I own a couple of apartment buildings in Mexico City, Mexico, and have been successful leasing with everything included. By "everything" I mean water, electricity, internet, cable/satellite TV, renters insurance and burglar alarm service. This helps me as follows:

a) I make 20% on all services provided.

b) If a tenant is late with rent (which occurs rarely) I shut down all the services!

c) Tenants avoid having to pay for deposits on services.

I also collect rent every 2 Fridays. Which is an additional 1/2 month per year for me, but renter's perception is that they are simply paying for all the services and rent in a comfortable bundle.

Do you think that this is achievable in Texas? I closed on 3 properties (19 units) and am in the rehab stage.

I look forward to hearing your thoughts on this concept!

Thank you.

CL.

[Nathan Gesner]

Sure. I know it's common in Australia to charge rent every week, increasing the amount of income to the Landlord and making it easier to evict when a Tenant is late.

However, there are two problems. First, you would be the only person in Texas charging rent bi-weekly so it may make it harder to find good renters willing to play along. Second, you can't just shut off utilities for non-payment of rent. The entire country has laws against that.