Professional landlords: What are ways to increase our top line?
Investor · Powell, OH · Member since 2016 · 26 posts · 14 votes
Like many of you, I have > 100 residents paying rent to me each month. This is terrific.
But with rent being set, I often wonder if other landlords have found ways to find incremental increases in revenue (that likely flow directly to the bottom line) with our captive audience?
I presently receive $0 from any utility company, vending company, or other third party. Do any landlords have setups where we can profit from these things? Buildium sells renters insurance directly to our residents but sadly we do not get a cut. (not even sure if paying us a commission on insurance is "legal")
Or are there products / marketing techniques we can use with our captive audience (without spamming them?)
The older I get the more I think I am wasting the 1000s of people I have rented to and not captured any incremental revenue. Any thoughts are appreciated!
We've looked at deals with internet providers for larger properties. Ultimately it hasn't panned out for one reason or another, but I hear promising things about it. That only really works when you have a bigger property, more negotiating power, and some level of control of the lines in and out of the building.
These things are fairly marginal, though. There's just more gain to be made by either buying more properties or improving the ones you have so they pull higher rents.
Hi all IMHO you are thinking right, about the businesses details but are do in the weeds. Higher bottom line is via working on learning better screening and requirements uip front!! IMHO and experience.
The goal is zero turn over (forever). IE a family with young children and a dog move in and literally never moves out untill every kid has gone thorugh the local college. IE 12+4 yrs. :) I'm on this path in a few doors. First tenants and never moved out (yet). Also when you screen for families with young children (I'll get to how to be FAIR housing HUD compliant while screening) you also get "doers" who rarely call re maintenance needs. Several doors I only get asked in to fix something every 2-4 yrs. Years not months. IE a kitchen faucet has worn out or a dishwasher.
Focusing on how to attract longer term (permanent) tenants will net 200% more (incrementally) vs any other tactic IMHO.
tips: buy the book Landlording on autopilot. Best screening chapter found.
- add to your requiremetns at the bottom of your zillow rental add; Must be long term renter, multi years. Preference given to longer term stays.
- Take 1 or 2 dogs. Put in a fence for the back yard. Charge $300 per pet fee, $25/mo per pet rent. Apartments are up to $50/mo pet rent. Use petscreening.com to help filter fake emotional animals.
- I get 3 mo bank statements during formal screening. During initial sms screening I ask send bank screen shot showing bank balance to continue. I look for 2.5x rent as min. This is practical; takes 2x min to move in. Many (many) apps have $500 to 1k in the bank. These are undesirable tenants!!! Not savers.
- If I see >>$10k in the bank I ask are you planning on buying a house? "Oh thats great thats good idea. I'm sorrry though we don't take tenants who are planning on buyin a house." FAIR housing allows you to deny based on financial situations. I literrally say we won't take you. You shouldnt either if your goal is "they will never move out", permanent renters do not have the FICO or savings to buy. We filter for those with savers mentality (via conversations, and bank balance) who are permanent renters. IE camee from a house and wanting to rent my bigger nicer house. NOT from selling a home and wanting to rent a year to buy another house.
- I ask; how many people will be rentiing? Why are you moving? How long do you plan on staying?
Piece together a complete picture of this family. Why moving, why your place vs another etc. It must add up to "makes sense" no holes in their story and sounds to YOU they will be permanent renters and take good care of your home.
Good luck to all, curt
Hi all IMHO you are thinking right, about the businesses details but are do in the weeds. Higher bottom line is via working on learning better screening and requirements uip front!! IMHO and experience.
The goal is zero turn over (forever). IE a family with young children and a dog move in and literally never moves out untill every kid has gone thorugh the local college. IE 12+4 yrs. :) I'm on this path in a few doors. First tenants and never moved out (yet). Also when you screen for families with young children (I'll get to how to be FAIR housing HUD compliant while screening) you also get "doers" who rarely call re maintenance needs. Several doors I only get asked in to fix something every 2-4 yrs. Years not months. IE a kitchen faucet has worn out or a dishwasher.
Focusing on how to attract longer term (permanent) tenants will net 200% more (incrementally) vs any other tactic IMHO.
tips: buy the book Landlording on autopilot. Best screening chapter found.
- add to your requiremetns at the bottom of your zillow rental add; Must be long term renter, multi years. Preference given to longer term stays.
- Take 1 or 2 dogs. Put in a fence for the back yard. Charge $300 per pet fee, $25/mo per pet rent. Apartments are up to $50/mo pet rent. Use petscreening.com to help filter fake emotional animals.
- I get 3 mo bank statements during formal screening. During initial sms screening I ask send bank screen shot showing bank balance to continue. I look for 2.5x rent as min. This is practical; takes 2x min to move in. Many (many) apps have $500 to 1k in the bank. These are undesirable tenants!!! Not savers.
- If I see >>$10k in the bank I ask are you planning on buying a house? "Oh thats great thats good idea. I'm sorrry though we don't take tenants who are planning on buyin a house." FAIR housing allows you to deny based on financial situations. I literrally say we won't take you. You shouldnt either if your goal is "they will never move out", permanent renters do not have the FICO or savings to buy. We filter for those with savers mentality (via conversations, and bank balance) who are permanent renters. IE camee from a house and wanting to rent my bigger nicer house. NOT from selling a home and wanting to rent a year to buy another house.
- I ask; how many people will be rentiing? Why are you moving? How long do you plan on staying?
Piece together a complete picture of this family. Why moving, why your place vs another etc. It must add up to "makes sense" no holes in their story and sounds to YOU they will be permanent renters and take good care of your home.
Good luck to all, curt