Yes, your Betamax cassette player still works! It was such a revolutionary product in 1979. Even today, your Betamax player can still record and play videos. But why bother with it? New technology is so much better.<\/p>\n
Your landlord business model might be working fine as well. Buying smart and charging little more than your expenses still makes sense. However, the model of yesterday pales in comparison to what you can do today. Are you overdue for an upgrade?<\/p>\n
By \u201cupgrade\u201d I mean accomplishing your wealth building objectives faster and with fewer moving parts.<\/p>\n
Here are four ways to bring your landlord business model into the digital age.<\/p>\n
Betamax Landlords strive to net $100 per month per unit. You can easily double or triple this objective by positioning your rental towards serving a niche market (and away from the Craigslist crowd).<\/p>\n
Niche communities benefit from living next to or with each other. Niching up allows you to rent rooms to professionals and international students or venture into the lucrative corporate housing space.<\/p>\n
Related:<\/strong> 3 Hacks to Help Property Managers Boost Productivity & Reclaim Lost Time<\/a><\/em><\/p>\n You can easily net an additional 30% by creating a housing solution for a specific group and growing your reputation as the best option in town. Customize your color scheme, furnishings, design choices, lease terms, pet policy, air filtration and accessibility to solve their problems. You\u2019ll have fewer vacancies and more demand — a better approach to landlording.<\/p>\n Betamax-ers never think to tap the endowments within their rentals. They focus too much on acquiring more rentals and not enough on optimizing what they have. Buying more rentals only guarantees you\u2019ll have more expenses. There is a less risky way to net an extra $100 per month.<\/p>\n You can easily net 30% more by opening your eyes to the profit centers that surround you. Your existing rental may be perfectly suited to:<\/p>\n Betamax Landlords dismiss the neighborhoods surrounding their rentals. They classify civic leadership as a \u201ccharitable\u201d activity best left to nonprofits and someone else.<\/p>\n If you only serve a luxury market, then your civic leadership, from a landlord\u2019s role, is not needed.<\/p>\n However, if you\u2019re a mid to lower end landlord and you\u2019re dismissing civic leadership, then you\u2019re squandering your income and equity-potential.<\/p>\n Trading something of value (a little of your time) for something of much greater value (improved safety, visual impact, orderliness) is a fundamental investment principle. Why do so few landlords understand this?<\/p>\n Organize a local email directory of property owners and landlords, \u201cinspire\u201d someone to keep your block litter-free, or sponsor an annual block party. These super simple things will lift the lid on your rents.<\/p>\n Long-distance landlords, you have an opportunity here as well. If you can\u2019t physically exert yourself, then financially support a local leader and\/or organization that makes good things happen on your block.<\/p>\n If you want a bigger harvest, add nutrients.<\/p>\n Betamax-ing multifamily landlords operate each unit in the exact same way. It never occurs to them that they can mix and match. You don\u2019t need to ask permission. Consider furnishing one unit and experimenting with Airbnb, vacation rentals or short stay housing. How about a boutique unit with high-end furnishings and some razzle-dazzle? Would that spike your income?<\/p>\n Experiment with using RelayRides.com<\/a> to rent a car to your short stay renters. Or use SpinLister.com<\/a> to rent bicycles to them. You can create a unique experience that the big corporations can\u2019t match. That\u2019s a lucrative position to occupy.<\/p>\n Jeremiah Owyang keeps a running list of Collaborative Economy businesses. You should follow his work. Emerging app\/web-based businesses allow landlords to customize their housing offerings and generate additional income in synergistic ways. Don\u2019t let Craigslist be the only web-based tool you use.<\/p>\n Be adventurous! You might find a sweet spot for your market that is 10x more profitable than your current way of operating.<\/p>\n Come on, BP family — it\u2019s not 1979 anymore! Put away your L-830 video cassette tapes.<\/p>\n You\u2019ve got more (and less risky) options than just acquiring more rentals to grow your net. That Betamax way of thinking derails you from discovering the profitable potential of your current rental holdings.<\/p>\n2. Tap Ancillary Income Opportunities<\/h3>\n
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3. Exercise Your Civic Leadership<\/h3>\n
4. Experiment With One Unit<\/h3>\n
Parting Thoughts<\/h2>\n