Updated over 6 years ago on . Most recent reply
YOUR OPINION: Best way to get rental adds on a single family unit
I am currently renting a single family home and the new school bond has made my profit disappear. I have been thinking of adding a pole building garage so that I can justify a large increase of rent.
Issue is the family I have in the unit have been there for 5+ years and have not been showing signs of leaving anytime soon.
Do you think that this is a good avenue? It will be about a 10k investment into the property but I should be able to increase the rent around 300 each month and gross a 350-400 a month profit.
Any other suggestions are greatly appreciated!
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- Real Estate Broker
- Cody, WY
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I agree with Charles. If a tax increase caused you to lose all profit, you must have been skating on thin ice in the first place. I would consider selling and getting into something that produces real cash flow, particularly since we are seeing what I believe to be a peak market.
If the family has been there 10 years, odds are pretty good you're a little below market. It would be easier to hit them with a 3% rent increase every year then to go through the trouble of adding a structure and increasing rent. You're more likely to be hit with a vacancy that will eat up any possible profit.
- Nathan Gesner
