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don’t have the time to manage your own properties or don’t feel like you can stand your ground when it comes to enforcing a lease, hiring a property management company just might save you money. “They can definitely save landlords money, particularly when the landlord is inexperienced,” Davis says. “Most novice landlords are far too lax about late rent, don’t keep clear books and find a million other ways to sabotage their ROI. If a landlord isn’t 100 percent committed to managing their rentals as a business, they should outsource to a professional property manager.” A good property management compa- ny will thoroughly screen tenants, reduc- ing the risk of late payments, evictions and damage to your property. When the tenant needs something at 3 a.m., he’ll call the management company, not you, and if he pays late, the company will collect late fees and evict when necessary. A good management company will also jump on a vacancy, quickly readying it for the mar- ket and minimizing the vacancy period. If you can’t do that for your properties, you will probably save money by hiring a property manager. ADD REVENUE STREAMS You can also generate a little extra
income by adding revenue streams. If you own a multifamily property, consider installing vending machines or on-site laundry services. With the vending ma- chine, you’ll have to pay for the actual unit and items in it, plus transaction fees for having a debit/credit card reader, taxes on the sales and maintenance fees. Depending on how many tenants you have, you could earn an extra $200 to $300 per month— minus water, electricity and either rental or maintenance fees—by adding washer and dryer units to your property. If you own single-family residences, you can add a revenue stream by offering ser- vices like landscaping or house cleaning. You’d get paid for acting as a contractor. For example, you would negotiate an arrangement with a landscaper to maintain the yard for $80 per month and offer those services to the tenant for $100 per month. You can get creative. Some landlords install solar panels to their properties and generate extra income by selling the excess energy to the grid. Others rent out extra storage space. There’s really no limit to what you can do as long as the tenant is willing to pay. •
plenty of decent rentals but few furnished ones, says Deb Tomaro, a broker associ- ate with RE/MAX Acclaimed Properties in Bloomington, Ind., who also owns 20 rental properties. You’ll probably only get a few hundred extra dollars a month for a furnished rental, but it could make your property more marketable. Just be sure you don’t spend an unrea- sonable amount on the furnishings, she cautions. Think in terms of earning an extra $200 per month ($2,400 per year) on a furnished rental. It wouldn’t take long
FROM TAX LIENS TO TURNKEY & BEYOND INTEGRITY AND OUTSTANDING CUSTOMER SERVICE DEFINE COMPANY
66 | think realty magazine november :: december 2016 6 7 to spend that much furnishing a home with beds, bedding, tables, plates, a couch, TV, artwork and everything else that your tenant expects. She recommends using extra furnishings you already have and shopping at secondhand stores. HIRE A PROPERTY MANAGEMENT COMPANY It may sound counterintuitive, but if you
Teresa Bitler is a regular freelance contributor to Think Realty Magazine. Contact her at teresa@teresabitler.com
CHARLES AND LENA SELLS ARE AT THE PIP GROUP’S HELM.
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