New Tenants, Better Cash Flow
One of our new customers came to us because he owns a single family home, but he travels out of the country fairly often. One of his relatives had been handling his property, and the tenants were behind in rent by about $12,000. They did not have the money to catch up, so we took over. It took us about 60 days to finish the cause notice and get the place vacant. Within 30 days, we did a full rehab on the property and we were able to really increase his cash flow. We increased the rent by $400 per month and the tenant we placed has been there for six months so far, paying rent on time every single month. All we had to do was to remove the non-paying tenant and get the place turned around.
Absent Landlord Starting Over
One of our clients had been managing her rental property on her own for many years, but she lives in California, so she had been doing it from afar. Her tenants decided to move out, and she had not seen the property for many years, so she asked us to go and inspect it. We found the place in disrepair. The tenants had not been taking good care of the property, and they left a lot of furniture behind. We had to manage a complete remodel, but we got it turned around and back on the market in three weeks. We found a qualified renter and all of our changes meant we could charge $300 more in rent per month than the landlord had been charging. We have a property that looks great, and both the owner and the tenant are happy.
Multifamily Moneymakers
Much of our portfolio includes multifamily homes, and we have done a lot of aesthetic work and exterior work to improve the investments. We have updated our landscaping, installed new windows and made some important energy upgrades. With those upgrades, we are getting an extra $200 to $300 per month in rent. That adds up when you’re talking about several unitsin one property. We are also adding bill backs to the shared utilities in those properties. In the last eight months, the utility bill backs we have implemented have brought in about $40,000 per month. We also have additional rent for pets starting at $25 per month, per pet.
Success stories like these help us attract high quality tenants. When you have a nice home to offer, it’s a win for you and a win for your tenants. It’s important that you understand how the market has changed. You don’t want to leave money on the table.
If you have an underperforming property that you’d like to turn around, please contact us at Fox Management, Inc., and we’d be happy to tell you how to change it into a success story.