TIP OF THE WEEK
for the week of May 9, 2016
BEST LANDLORDING CHANGES IN LAST 3 YEARS!
A landlord shared that in the last 3 years he credits several landlording changes he's made that has lowered his headaches, streamlined systems, and increased profits. Two of the bigger landlording changes include the following:
1) Rent collection - Tenants can pay at my local bank in person 6 days a week with cash, money order, cashier's check or debit card. No charge to them or me for this service. I see the money the minute it hits my account, and the next day I see an online scanned deposit ticket, stamped with the date, with the tenant's name. No more "I mailed the check last week"....no more bounced checks...no more chasing rent. It's either paid or it isn't. Easy cheesy. Did I mention this service is free?
2) Outsourcing trivial work - cleaning, mowing, trash removal, most small repairs. Pay someone $10 - $15 an hour for unskilled labor or $25 an hour for semi-skilled that is drudgery and removes focus from getting a place rent ready quickly and stems the flood of vacancy expenses and lost rents. Your hourly rates may vary by location, but when I found that most contractors in my area wanted $40 - $50 just for semi-skilled work, I went shopping and found a LOT of decent folks who had some skill and were willing to moonlight for a lot less money. Church, recommendations from local REALTORS, college students, etc. Of course, screen well and only pay as work is completed. Took my average turnover time from 2 - 3 weeks to 1 - 3 DAYS...the extra rent more than makes up for the money spent to hire it done.
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