How I got an extra $100 per month for nothing

[Ozzy Smith]

If you are involved in the buy and hold strategy of real estate the number 1 thing we all look for is the bottom line. How much money do I spend versus how much money comes in each month. This is the measuring stick by which all properties and for the most part success is judged. The problem with many markets (and subsidized housing) is the rent can only go so high and then is not marketable to the potential tenants shopping for a place to live. So the question becomes how can I get more money out of my rental.... the answer is easier than you think.

Most landlords that rent SFR's (me included until just recently) have been leaving money on the table when it comes to our rentals. In fact we have been probably costing ourselves money that cut into that ever precious bottom line and we didn't even consider that it was something we could change. I am writing this post to get some feedback and hopefully introduce to you a way to get an extra $100/month or more from your tenants and they often times thank you for it!

How many times do you get a phone call like this?.... "Mr landlord, I just called to let you know that my stove quit working and need you to come over and fix it or buy me another one." What about this one?.... "This is the city calling to inform you that you have 7 days to mow your grass because it is to high, or we are going to fine you." These are the types of things that drive us crazy and pushes a lot of people over the edge because they don't want bothered with these calls. What if there was a way to make these calls stop or even better, pay us to stop being a problem? HERE'S HOW IT DOES!!!!

I recently started renting all of my SFR's as unfurnished. Big deal you say I don't furnish mine either so what does that have to do with anything. It's simple... unfurnished doesn't mean just the furniture. Think of it this way... what is real estate anyway? It's in simple terms just the sticks and bricks. When you bought it or built it the appliances were not included and to put them there cost YOU additional money out of your pocket. So why do we just give them for free to our tenants?

All of them need a refrigerator, and a stove, but not many tenants have these things themselves. Then when they abuse these appliances they are our problem.

Everyone has to wash their clothes and many tenants are used to going to the laundry mat and spending a few dollars a week to do it and don't think twice about it. The grass doesn't stop growing but few of the tenants actually like mowing it so often times they don't. Stop making these free give-aways.

I recently advertised my 2 BR SFR with a fenced in yard for rent at $600 per month. Not to shabby but I wanted more. I also realized that the last tenant had been there a long time and the appliances were basically shot and were needing to be replaced. I didn't have anymore laying around and wasn't thrilled about buying new ones. This made me think back a few months to one of my other higher priced rentals where the tenant brought all of their own things because they already had them. They just expected this to be the way it was and never even hinted at me supplying them with these things. So I thought why not do this all the time? So I did. When the new tenant showed up and said about renting the property we agreed on the price as unfurnished (Pretty standard). Then I asked what appliances they had. They didn't have any so me being nice I said I would supply the stove at no charge. When asked if I had a refrigerator I said yes and agreed to rent it to them for only $25 per month. This went on for a little bit and when it was all said and done this is what it came out to (and they thanked me for solving these problems for them).

House rent = $600/m

Refrigerator = $25/m And they are responsible for maintenance and repairs for all

washer/dryer $15/m if not returned in same condition it comes out of deposit :)

grass cutting = $35/cut apprx every 2 weeks = $70/m (only takes 15 mins per cut and I have to be there because I mow 3 others on the same street anyway)

Total = an additional $110 per month on a 2BR unit for not much effort on my part.

In closing, there are several little things like this that we can do to increase our rents if we just get creative. Our time and things we put into or around our properties cost us something as landlords so we need to stop giving it away for free. Also don't be afraid to ask them to pay for it because in most cases I'm finding out they planned on paying someone else to take care of it for them anyway or at very least they were going to buy the appliances or equipment themselves and are worried about how they can afford to do that. It's actually in many times a relief for them knowing that you are going to take care of it for them yourself and are only charging such little money to do it!