In case you haven\u2019t heard about the $100 Expense Reduction Challenge, let me bring you up to speed. In March 2013, I dared BiggerPockets Nation to reduce their rental property expenses by $100 per month. If anyone was successful, I\u2019d send them a $20 Home Depot gift card.<\/p>\n
Deborah B. crushed the challenge saving $261.78 per month by adjusting her rental insurance<\/a>\u00a0and now I get to join her in the winner\u2019s circle!<\/p>\n It\u2019s a hodgepodge of methods, but here\u2019s how I finally pieced my savings together:<\/p>\n $30<\/b> per month by asking tenants to voluntarily contribute $10 each month towards the complimentary Wi-Fi I was providing. Three tenants began adding $10 onto their rent payments. I plan to make a donation request once a year.<\/p>\n $22<\/b> per month by having Ambit Energy credit monthly referral bonuses. I referred 15 customers to Ambit\u2019s less expensive natural gas service so now Ambit credits my natural gas bill each month. How cool is that?! My official results are pending, but I\u2019ll post a copy of my bill once it comes in.<\/p>\n $50<\/b> per month by buying deeply discounted Home Depot store credits from people on Craigslist. Once I noticed I was spending over $150 each month at Home Depot, I decided to take advantage of the secondary market for gift cards and store credits. I have enough contacts now that I can consistently buy store credits at 30% + discounts and I maintain a reserve of discounted cards so I never run out.\u00a0 Farwell Home Depot financing!<\/p>\n $70 <\/b>per month by reducing my vacancy rate. Just because I\u2019ve been a landlord<\/a> since 1996 doesn\u2019t mean I do everything well. One of my biggest mistakes was waiting for a tenant to move out before marketing their unit. Now I start marketing as soon as I get a 30-day move out notice. I conservatively predict that this practice (plus the waiting list I\u2019m forming) will reduce my vacancy rate by at least 25% which saves $70 per month in lost rent.<\/p>\n That\u2019s $172 worth of savings; definitely enough to win the $100 Expense Reduction Challenge.<\/b><\/p>\n How much can you save? It\u2019s not easy but it is a worthy quest. A lot of my BiggerPockets mentors consider saving $100 to be equivalent to owning profitable rental unit. But since $100 worth of savings can be realized without investing any money, your return on investment can be off the charts!<\/p>\n Motivated yet?<\/p>\n Here\u2019s a battle plan to get you started:<\/p>\n Step 1: Park Your Ego \u00a0<\/b><\/p>\n There is no way around it; a serious effort to cut cost involves self-confrontation. And that\u2019s not fun! Egos have their place, but not when it comes to reducing expenses.\u00a0 You can either save face or money, but you can\u2019t do both at the same time.<\/p>\n Step 2: Confront the Brutal Facts\u00a0<\/b><\/p>\n Step 3: Challenge Every \u201cFixed\u201d Expense (They Really Don\u2019t Exist)<\/b><\/p>\n Just like a schoolyard bully, fixed expenses start to crumble once you fight back. Be irreverent \u2013 you get what you negotiate.<\/strong><\/p>\n Step 4: Be Courageous \u2013 Be Ruthless \u2013 Take Action<\/b><\/p>\nA Journey to Finding $100 in Monthly Savings\u00a0<\/b><\/h2>\n
Create Your Own Success Story\u00a0<\/b><\/h2>\n
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Get Into the Corridor<\/b><\/h2>\n