For many of us, we look at the big scores to make money in real estate.
All good.
As well, there are other ways to make money in real estate that should not be overlooked.
I’m talking about the yearly rental increases.
Here in Ontario, they are minute amounts because of the rent control; yet when compounded, year after year, it adds up!
In your area, it could be different.
Either way, these increases add up over time and help you make money in real estate.
Tips to Make Money In Real Estate When It Comes To Your Property Manager
When you have a property manager, it’s usually their job to handle the rent increases.
However, YOU are the business owner – which means you MUST have a handle on what’s going on with your employees.
One of those employees is your property manager.
Realize they have a LOT going on.
And they may have the BEST follow-up and reminder system in play, but I would still have these reminders in YOUR calendar as well.
Sometimes, these little things slip through the cracks when your PM is dealing with hundreds, even thousands of rental properties.
It’s your job as the business owner to be on top of everything.
So, do yourself a favour and mark down the rental increase in your own calendar as a reminder.
Then, send your PM a friendly reminder as well so you continue to make money in real estate without doing any more labour 🙂
How to use the rental increase as an effective marketing tool
Even though we’ve been talking about keeping the flow of money coming in so you can make money in real estate…
Sometimes, letting the rental increase pass could help keep your tenants longer.
Some real estate investors disagree with my madness – but I’ve proven this since day one of my investing business.
And my tenants have stayed with me for years.
There may be a year where I’ll keep the rent as is. I use this as a “gift” for my tenant.
That extra $20 or so adds up to a good chunk of change for them, and it really doesn’t make or break me.
If that $250 or so BREAKS my property income, then I’d really have to take a second look at my business.
I’m not saying do this all the time, but it’s just another ACE in your pocket that really doesn’t COST you anything…
Because your property cash-flows as it is, doesn’t it?