Below are some management tips shared by landlords nationwide.

 

Three Rental Units for the Price of One!

A landlord asked other real estate investors on our Landlord Forum: What have you all been finding as good investments over the past year or two? The inventory for (bargain) Real Estate purchases is very low. Leads have all but dried up.

Well, as a “creative” real estate investor, this is when being able to see greater POTENTIAL for a property can make you tens (if not hundreds) of thousands more. One successful real estate investor responded as follows:

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“We bought one (property) straight off the MLS. It was marketed as a single-family home but we could see that it was easily convertible to a triplex. Some Realtors still don’t understand that ADUs (Accessory Dwelling Units) are legal in our area.”

This investor will now end up with three rental units for the price of one, because they were able to creatively see far more potential in the property than the average real estate buyer.

10 Charities That Offer Furniture Donation Pick Up for Free

Donating to a charity is a fantastic way to give back to the community.  Donating large furniture items isn’t as difficult as you might think. No, you don’t need to call someone with a large pickup truck again. Instead, get in touch with one of the 10 charities listed below that will come and pick up household items for free or at an extremely reduced rate. If you’re a landlord dealing with tenant abandonment and you have a legal right to dispose of the property, save yourself a headache managing the tenant’s abandoned belongings. Contact and donate to one of the ten organizations below and they will remove it for you. 

  1. Habitat for Humanity
  2. Salvation Army
  3. GreenDrop
  4. Pickup Please
  5. The Arc
  6. AMVETS
  7. The Furniture Bank Network
  8. Donation Town
  9. Housing Works
  10. PickUpMyDonation

Do You Allow Dogs?

This question is often asked by either new landlords or ones that are having a hard time renting their property. Landlords are often quick to share their reasons why they do NOT accept dogs, but some share why they do. I wanted to highlight a unique response from one particular landlord who explained why he now gladly rents to a particular sub-market of special dog owners.

“Dogs and their owners were always troublesome, so I educated myself and found a sub-market renting to ‘special’ dog owners.

Case in point, my four-plex had front and back doors with the garages in the back yard taking up half of the rear yard. The other half was a grass area. Grass makes me no EXTRA INCOME, so the gardener and watering expenses were a negative.

One day while working on another client’s apartment building, I noticed a single dog run at the rear of the property that did NOT connect to any rental home, but the landlord charged an extra $200 a month for the dog run and allowed that resident to have a dog. This was a light-bulb moment.

I then designed on paper my grass area with three dog runs and a fourth area with tables for people. I connected one dog run to a resident that had a back door on the side walkway, not used by anyone because the driveway was on the other side. I then connected another dog run to the resident whose back door is next to the grass area. Two dog runs.

So, I advertised an apartment with an attached dog area and maintained yard. I was only asking $400 above market at that time. I had a dozen responses. I chose a woman who works long hours and needed a place for her dog to lay in the sun, poop, and get fresh air whenever necessary. I had installed a dog door in the rear apartment door. Rent as an apartment was $1,250 at the time, I ended up getting $1,700. I had my gardener picking up the poop when he does the trimming once a week. 

She was the best resident, loved her dog more than her ex-husband. I also went to her current apartment and had a look to see if she kept the place well. So, it’s just the dog and the owner. I rented two other apartments out the same way in that property.”

Invoice Former Residents

One of the top concerns to rental property owners is being able to collect money due you from former residents. One successful landlord recently shared a new twist on a collection tip he has used successfully to collect money from residents that left owing him money.

“I send out my invoices for past due balances to former residents. I always give them the option of a 20% discount with a one-time payment. A 10% discount over two months, or in full over three months. They get to choose their plan. I have sent invoices for a number of years for balances due upon move out. I think I’m going to add to this strategy. 

With the company “Square” (a financial services company) an entrepreneur can send invoices digitally, recurring monthly automatically (after they move out) until it’s paid. Just let it hammer their inbox. I might even set it up on a weekly or biweekly basis. I will probably just send it with the 20% discount right in the description of the Square invoice and just set it on automatic recurring.”

Editor’s Note: The Pennsylvania landlord sharing this strategy has sent his “payment plan” invoices before going to court for several years and says he has had great success.

 

Go Beyond the Limits!

I just recently returned home from our LandlordRetreat.com, which was held this year in Los Cabos, Mexico. The theme of the retreat was GO BEYOND THE LIMITS! I want to encourage all landlords this year to go beyond the limits. As life goes on, it is so easy to become complacent with our current status of our rental business, whether that be in terms of the number of rental properties we wish to acquire, the amount of income the properties generate or in terms of how we manage our rental properties.

This year I would like to simply challenge you to pause for a moment and take an honest look at the current status of your rental property business. Ask yourself, “Have I become complacent”? Are you really okay with that? With so many outside forces affecting our lives, especially over the last two years, many landlords have stopped going after goals they once had. Most have stopped growing and some have even considered giving up. I know I have to continually challenge myself not to let “what seems to be” limitations stop me from going beyond where I currently am. So, I keep learning and connecting with other successful landlords that are also seeking to go beyond the limits.

As this new year begins, I just want to encourage you to shake off complacency and keep learning all you can from connecting with other successful landlords. And utilize online resources and live trainings so that this year you can grow your rental business beyond the limits of where you are now.

 

The tips in this column are shared by regular contributors to the popular MrLandlord.com Q&A forum, by real estate authors and by Jeffrey Taylor, [email protected]. To receive a free sample of the Mr. Landlord newsletter, call 1-800-950-2250 or visit their informative Q&A Forum at LandlordingAdvice.com, where you can ask landlording questions and seek advice of other landlords 24 hours a day.

 

Read more articles from the March edition of the AOA Magazine