If you’re like the vast majority of landlords and real estate investors, you entered into

the real property business to build wealth and create income for yourself. Ultimately,
whether or not you’re able to achieve these goals depends largely on the deal(s) you
originally struck. It’s true, bad deals lose money, but don’t forget, good deals don’t
always make money.

Increasing the profit you earn from your rental portfolio relies largely on increasing
revenue and decreasing expenses, but that means a great deal more than simply
upping your rent and lowering your mortgage. There are countless additional ways
to generate more income from your properties and to reduce the amount you spend
to have them.

In the following eBook, we offer tips, tricks, advice, and evaluations for different
strategies to help you make more money and increase the value of your
investments. Read below to find out more!
Contents
Part 1
Increase Revenue
Add Revenue Streams
• •
• Rent Storage Space
• Offer Satellite TV
• Allow Tenants to Sublet with
AirBnB
• Offer Corporate Housing
• Monetize Spare Land
• Lease A Billboard
• Lease A Cellphone Tower
• Add Coin Operated Laundry
• Put In Vending Machines
• Rent U-Hauls & Trailers
Charge Fees
• Pet Fees & Rent
• Late Payment Fees
• Applicant Fees
• Lease Termination Fees
• Extra Occupant Fees
• Landscaping Fees
• Holding Fees
Increase Rent Price
• Tips for Evaluating Your
Rental Market
• Improve Your Property to
Increase Rent
• Improvements to Existing
Property
• Implement High-Tech
Features
• Invest in Green Technology
Part 2
Reduce Costs
Reduce Expenses
Manage your Own Property
• Choose the Right Property
Management Software
• Minimizing Maintenance
Costs
• Other Ways to Save
Lower Utilities Costs
• Use Green Appliances
• Insulate Windows
• Change Air Filters
• Change Lightbulbs
• Avoid Heating Devices That
Use Electricity Or Heating Oil
• Use Shady Landscaping
• Change/Lower Water Heater
Setting
• Use A Water Heater Blanket
Lower Financial Expenses
• Take Advantage Of All Tax
Breaks
• Challenge Your Property Tax
Assessment
•
Minimize Turnover
• Find Good Tenants
• Upgrade The Property
• Give Discounts
• Collect Rent Electronically
• Remember Special Dates
Decrease Vacancy
• Be Prepared & Proactive
• Maximize Marketing Efforts
• Sell Partial Months
Part 1
Increased Revenue
Increase Revenue

way to increase revenue is to raise rent prices. While

this can be an effective way of garnering greater

ways that you can implement them into your own

real estate business.

Add Revenue Streams

An obvious way to increase revenue is to add new

be. Landlords have plenty of options when it comes

matter of determining which will work best with your

real estate business.

1
Offer Cleaning Services
This additional revenue stream
especially those managing large
units and university housing. Few
college kids clean regularly — if at
all. Offering them cleaning services
packaged into their lease could be
a sell point for students and their
parents.
Keep in mind — regular cleaning will
help better maintain your properties.
Ensuring that your units are in good
shape will have a demonstrably
positive effect on your long-term
cap-ex charges.
2
You might even be able to coach
the cleaning service to focus their
effort in a way that maximizes this
to regularly clean the coils on
Independent landlords managing
smaller properties might
a chance that tenants would
be interested. Try talking to your
tenants and feeling out whether
or not cleaning services appeal to
them.
Even if only one or two units pay for
the services, it is an opportunity for
Offer Cleaning Services

How to get started:

Find a reputable cleaning service

provider. Choosing the wrong pro-
vider could put the security of your

Contract out the work. The partic-

ulars of the services will vary based

whereas others might prefer weekly

or bi-weekly services.

Determine a price. Because more

your service provider will likely

charge less for weekly cleaning How offering cleaning
services than they will for monthly services will increase your
- revenue:

based on how frequently the clean- What you will pay: $50-100 per
ings occur. cleaning.

Collect payments. You can include What you can charge:

of the cost of each cleaning.
agreement if you know the services
Revenue Summary: Tenants will pay
can write up an addendum after

3
Rent Storage Space

Any landlord that has extra space in mind that renting out your excess
space means additional liability.
it out. This requires little additional Issuing clear guidelines for usage of
the space and keeping up to date
after all — and has the potential to on maintenance are both crucial.
There is also a possibility that
- renting to non-tenants could lead to

renters and pre-existing tenants.

the resources readily available to
you. It is important to keep

4
Rent Storage Space

How to get started:

Assess your unused space. Figure Collect rent. You can collect rent
out how much storage space you
have available and how it would be can choose to collect online using a
best used. digital payment service.

Know the laws. Non-dwelling units

How renting storage
are regulated be state laws con-
space will increase your
and more. Staying up to code is your
revenue:

What you will pay: $0-200

Lay out clear terms of use. Prepare a
and ready a plan of action in case
the contract.
depending on how much work is
required to begin renting the space.
What you can charge:

Rent to non-tenants. The laws - Garage: $100-200

and regulations surrounding
non-dwelling units differ greatly
from landlord-tenant laws. Renting
non-dwelling spaces to tenants can
- Uncovered Parking Spot: $50-100
- Large Shed: $150-200
Revenue Summary: Renters will pay

relationships. will go directly into your pocket.

5
Offer Satellite TV

likely still desire access to traditional TV

programming. Offering satellite TV to looking into prices before making a decision.

your tenants can be a great option for an

additional revenue stream because it has a There is somewhat of a time commitment

minimal entry barrier. Landlords managing in offering satellite TV to your tenants.

5 or more units can typically get package

landlords managing a single unit can take providing assistance to tenants are all

advantage of this revenue stream. time requirements to keep in mind. Some

landlords have also experienced issues

There are plenty of TV providers to choose due to tenants partaking in illegal activity

online. Implementing a plan to counteract

Verizon are all available options. You might such behavior is crucial.

6
Offer Satellite TV

How to get started:

Create a game plan. Will you of-

Call the provider. Once you have an

a price estimate and to create an

account.

Install the hardware. Many provid-

ers will do the hard work for you by
installing the hardware themselves.
How offering satellite TV
Advertise the amenity. Offering TV will increase your revenue:

your competitors. Make sure pro- What you’ll pay:$50-100/unit/month.

spective tenants are aware of what
you have to offer.
Collect payments. You can charge
tenants alongside their rent. Simply
create an addendum to their lease
or write it in before signing.
What you can charge:
-
ants a little more if you offer them a
little more — think additional chan-
Revenue Summary: Tenants will

7
Allow Tenants to Sublet with Airbnb

An issue that more and more land-

lords are experiencing is tenants They would help renters with
subletting their space through
Airbnb without their knowledge or
permission. This leads to tenants and take care of housekeeping
- responsibilities.
ted occupants in your unit that you

Working with trusted tenants to sub-

This is a particularly attractive op-
tion for landlords located in areas
and then you cut a check for your
tenant anytime they host a renter.
This ultimately keeps you in control
procedures.

Airbnbs are located all over the Your biggest considerations will be
the cost and time required to fully

area. lease that details the agreement

The innkeeper model describes the risk of bad Airbnb renters.

relationship that you would have
with your tenant if you chose to sub-
let with Airbnb. As the landlord you

the process. This includes using the

8
Allow Tenants to Sublet with Airbnb

How to get started:

Select a trusted and willing tenant. Clean the space.

Not everyone will want to rent the responsibility of cleaning will fall
to your tenant.

Establish a formal agreement.

Figure out all of the logistics and
update their lease agreement ac-
cordingly.

Furnish the space.

the time required to shop and as-

responsibility off to your tenant — it

give them guidelines and a price

range to follow. How allowing tenant to
sublet with Airbnb will
List the space on Airbnb. You will increase your revenue:
-
What you’ll pay:
create a strong page to market the
unit. What you can charge: $50-150/night.

Collect rent. Revenue Summary: Even if you only

renters will pay you through the

check for your tenant. per unit per month.

9
Offer Corporate Housing

Anyone from construction workers

corporate housing is essentially to high-level executives require
where landlords rent out fully
furnished apartments or homes to needed all over. No matter your
businesses. The businesses then use
the space to house traveling workers
who are gone for typically 20 or more
corporate housing to work for you.
are included in the bill. It works much
The biggest drawback to consider
the housekeeping. is the cost and time required to fully
furnish an apartment or house.
Corporate housing might also mean

housing blue collar workers who

and your laundry machines will be

put to greater use.

10
Offer Corporate Housing

How to get started:

Assess the local market. If you get

-
urious units would be a better offer.

Furnish the space. Make sure the

to.

Determine a price. The goal of cor-

porate housing is to offer a better
deal than hotels. Landlords usually
offer prices that are half the price How offering corporate
of hotels. So if hotels in your area housing will increase your
revenue:
your goal is to charge $50.
What you’ll pay:
Market the unit. This can be done
What you can charge: $50-150 per
person per night.
to have quality photos and descrip-
tions of the space. Revenue Summary: If you only rent
20 days out of each month (which is
Clean the unit. You want to ensure typically the minimum for corporate
that each new renter walks into a
unit that is at its peak quality.

11
Monetize Spare Land

Monetizing spare land applies Possible uses for the land include

but there could also be opportuni-

ties for landlords in metropolitan more. When choosing how best to
areas if they have adequate land.

sense for your unused land.

12
Monetize Spare Land

How to get started: How monetizing spare

land will increase your
Assess your land.Determine what revenue:
would work well in the space and

What you’ll pay:$0-500 depending

able to grow produce or monetize the
on how much work is required to
begin renting out the land.
to rent it out to someone else.

What you can charge:

Advertise the available land.Find

for more.
renting your land if necessary — long
term rentals are ideal.
Revenue Summary: Although there
may be somewhat of an up-front
Determine a price. This will vary based
on how much land your renting out
pocket each month. The more land
and how the land will be used.

Create a formal agreement.

will want to ensure that the terms

legally binding.

Maintain the land.

it is important to keep the land looking
nice and ready to go for its next use.

13
Lease A Billboard

Most landlords should consider Although billboards are a low

leasing a billboard as a potential
revenue stream. While there are the zoning laws can be tricky to
work around. Laws dictate where
already have the space to sell
advertisement space to local

organizations that can advertise.

railings all offer you the ability to rent a headache and result in loss of
out ad space. revenue.

14
Lease A Billboard

How to get started:

Read zoning laws in your area.Zon-

ing laws vary greatly from place to
place.

Assess your space. Figure out where

advertisements would work best
and how big they can be. How renting storage
space will increase your
Hang your own advertisement. revenue:
Hanging an “Advertise Here” sign
with your phone number is a great What you’ll pay:
way to reach potential renters. You
you might decide to erect your own
to get started. billboard.

Create a formal agreement. Rent- What you can charge:

ers should sign a contract that -
formalizes all of the logistics such as tisements will rent for less than
actual billboards. Your location
of advertisement. will also affect how much you can
charge.
Collect rent. Providing the option to
- Revenue Summary: Depending
ment services will encourage rent-
ers to advertise with you. might experience a hefty up-front

-
its right into your bank account.

15
Lease A Cellphone Tower

Not all landlords will have the space Zoning laws surrounding cellphone
required to lease a cellphone tower
- to meet. Service providers also have
lords live somewhere in which ser-
vice providers are looking to build
new towers. But if both of these facts

tower on your property could lead to

too sweet to pass up.

16
Lease A Cellphone Tower

How to get started:

Do your research. Are any service

providers even looking to put in a

the time of looking too far into the

topic.

Assess your land.Cellphone towers

square feet of land.

How leasing a cellphone
Read up on zoning laws.The laws tower will increase your
will be different in every city. revenue:

Know your worth. If everything What you’ll pay:

What you can charge:

go into price negotiations without per month.
knowing the average price. You
Revenue Summary: You have the
hundreds of thousands of dollars

research.
your monthly rent over the typical
Sign the contract. The standard 25 year contract period will earn you
contract to lease a tower is 25 years.

17
Add Coin-Operated Laundry
No tenant wants to go to a
units based on the sole fact that they
out on prospective tenants or an
coin-operated laundry machines.
18
Coin-op laundry does particularly
landlord could capitalize on this
opportunity. It comes with a minimal
time commitment and requires only
the initial investment. You might
have to put money into repairs
Add Coin-Operated Laundry

How to get started:

Purchase coin-operated washer

and dryer units.
a good deal. You might be able to
get a discount if you buy multiple
units at once.

Place the units. Laundry units should

a centralized location.

Add a change machine. Provid-

ing tenants with the ability to get
change in the same place they do How adding coin-operat-
their laundry will encourage them to ed laundry will increase
use your equipment.
your revenue:
Collect your money. What you’ll pay:
laundry unit.

What you can charge: $1-2 per

washing/drying.

Revenue Summary:

based on how many washers and

landlords make $75-200/ month.

19
Put In Vending Machines

Putting in vending machines could There are a few different options

be a great additional revenue when it comes to adding vending
stream for landlords managing machines to your property. You can
- go through a company that gives
pecially those with families. Kids love

- could choose to buy the machine

willing to put in and how much

20
Put In Vending Machines

How to get started:

Assess the demand. Do your

All of this depends on the kind of

hope to attract.

Buy the vending machines. As How putting in vending

machines will increase
options when it comes to buying your revenue:
the machines. Consider all of the
variables and go with the best What you’ll pay:
buying option for you.
What you can charge:
Put in the vending machines.
Revenue Summary: How much you
machines will be a common area
that is centrally located. Placing the number of machines you put
them inside your facility will help
and how much they buy. Landlords
can make anywhere from $100 to
Collect your money.

21
Rent U-Hauls & Trailers

Renting out U-Hauls from your

real estate business is a great becoming a U-Haul dealer is the time
opportunity for additional commitment. Dealers are expected

they typically offer 21% percent

and wash the trucks and trailers as
potential tenants to your business. All needed.
you have to do to become a U-Haul
dealer is call to set up.

22
Rent U-Hauls & Trailers

How to get started:

Visit the U-Haul website.They have

a lot of additional information avail-
-
mation online to become a dealer.

Apply to become a dealer. If you

after speaking with a representa-

tive.

Complete their training. U-Haul

requires that new dealers take their
training course.

Receive the equipment. U-Haul How renting U-Hauls will

usually delivers the trucks and trail-
ers to you.
Get listed on the U-Haul web-
site. The great part about dealing
U-Hauls is that you get listed on their
increase your revenue:
What you’ll pay:$25-250 per month
for refueling.
What you can charge: $10-50/piece
of equipment + $0.50-0.75/ mile.

Revenue Summary: You have the

potential to make $100-500 per
month depending on the demand in
your area and the amount of equip-
ment you have to rent out.

23
Charge Fees
Another great way to increase your

monthly and/or yearly revenue is to

implement additional fees. While your goal

should never be to charge tenants unfair

or service. There are also situations in which

you could — and should — be charging

tenants fees as a result of breaking terms of

their lease.

“There are also situations

in which you could — and
should — be charging”

24
Pet Fees & Rent Although allowing pets can lead
to greater liability and damage to

According to the Insurance

fees are all various types of pet
households own pets in 2020. As a charges that landlords can choose.
Pet deposits are much like security

you cut your potential tenant pool

by more than half. Allowing pets in
your units is a great way to attract monthly charge that is tacked on to

an additional revenue stream. typically one-time fees paid when

the tenant initially brings in a pet. We
recommend going with pet rent. It is
guaranteed money that you get to

provide.

25
Pet Fees & Rent

How to implement fees:

Look into state laws. All states re-

quire that landlords allow service

prohibit pet fees. Make sure you are

-
ulations.

Determine your method. You must

-

Nail down a price.

time pet deposits and fees are

per month.

Update lease agreements. If you

are implementing new pet fees What you can earn:

addendum for their leases. If the Expected Cost: $0

agreement into their leases. How much to charge: $200-500

Collect payments. monthly payments.

26
Late Payment Fees

Although being considerate and Some tenants may see late fees
understanding of your tenants helps

health of your business hinges on

enforcing payment agreements.
Making exceptions and allowing
tenants to falter on payments
hurts your business. A good way
to counteract late payments is
implementing late fees.
is good practice to allow for grace
periods so that tenants are granted
consistently apply the late fee to
their rent.

27
Late Payment Fees

How to implement fees:

Be aware of state laws. Some states

have regulations regarding how
landlords can implement late fees
for rent payments.

Settle on a rate. Landlords can make

fess are 1%-5% of monthly rent.

Determine grace period. Although

do help maintain cordial relation-

-
ommended. What you can earn:

Update leases. Once you have all Expected Cost: $0

How much to charge:

Collect payments. fees.

28
Applicant Fees

Filling vacancies can be expensive. Applicant fees are a good way to

With the cost of screening tenants increase your revenue because

charges add up quickly. One way Keep in mind that some prospective
that landlords counteract this is by tenants might be put off by
charging applicant fees.
else in your area is charging them.

29
Applicant Fees

How to implement fees:

Assess state laws. Every state has

different laws about how much you

Determine a price. Application fees

should cover the cost of vetting

Inform prospective tenants. Tell-

ing tenants about application fees

it is important to be upfront about

it. Let tenants know how much you
charge and that it is non-refund- What you can earn:
able.
Expected Cost: $0
Charge the fee. You can collect
How much to charge:
sure to document the payment. application.

30
Lease Termination Fees
Even though leases are legally
guaranteed to stay for the entirety
of the agreement. Charging lease
termination fees is a good option for
landlords because it helps minimize
loss when a tenant leaves early.
Tenants also tend to prefer making
the simple payment rather than
searching for someone to take over
their lease. It really is a win-win.
31
How to implement fees:
Determine a price. All lease termi-
landlords charge tenants the price
of their monthly rent.
Update your lease agreements.
Writing the fee into the lease con-
tract ensures that tenants will be
aware of the fee and are required to
pay it.
Charge the fee. When a tenant in-
forms you that they will be leaving
payments.
What you can earn:
Expected Cost: $0
How much to charge:
Extra Occupant Fees
Many tenants neglect to tell their
landlords when an additional
occupant moves into your unit after
likely broken their lease agreement.
can charge an extra occupant fee.
32
Because the tenant is simply
bringing in an additional occupant —
space — you need to ensure that
your fee is reasonable. Although it is
within your rights to charge for extra
might strain your tenant-landlord
relationship.
Extra Occupant Fees

How to implement fees:

Be aware of state laws. The Fair

Housing Act has strict guidelines
about respecting familial status. Be
sure your fee is not in violation of any
laws or regulations.

Pick a price. $50 per additional oc-

cupant is advised.

Screen the additional occupant.

inhabiting your unit. Complete your

typical background check before
moving forward with the process.

What you can earn:

Update the tenant’s lease.
Expected Cost: $0
Charge the fee. You can add the fee
How much to charge: $50 per addi-
payments easier. tional occupant.

33
Landscaping Fees

Not all tenants have the time or You can even require that all tenants
desire to keep up on landscaping pay landscaping fees if you want
duties. Offering landscaping services consistency among your properties.
to tenants keeps your property If you choose to make landscaping

opportunity for additional revenue. be seen as a hidden fee.

34
Landscaping Fees

How to implement fees:

Assess local laws. There is legisla-

tion regarding landscaping that
varies from state to state. Make sure
-
ing.

Source a landscaping company.

It is important to shop around and

trust to make your property look its

best.

Contract out the work.

-
tract out the work. Make clear the
What you can earn:

Expected Cost: $50-100 per hour.

issues.
How much to charge: $10 on top of
Determine a price. We recommend the hourly cost. If the landscaper
charging $10 per tenant per month
on top of your cost for the services.

Update tenants’ leases.Leases

-

Collect payments.

35
Holding Fees

When trying to lock down a new If the prospective tenant passes the

than being moments away from of the signing process for another

prospective tenant to back out.
the money to screen the tenant
and have likely turned down other
interested customers. A great way to
fees. This might deter some people
from moving forward with the
your time and money are safe.

charge holding fees.

When a tenant drops off an

them to “hold” the unit while you

complete a background check. If

use the fee as a future rent payment

or as a security deposit.

36
Holding Fees

How to implement fees:

Know your state’s laws.Some

states have restrictions on holding
fees of which you should be aware.

Nail down a price. Holding fees are

the value of your property and how

interested the prospective tenant is.

Document the payment. Be sure

to create a form that documents
the payment and the agreed upon
terms.

Collect the payment. You can ac-

-
ments.

Complete the background check. What you can earn:

Return or keep the payment. If the Expected Cost: $0

How much to charge:

rent or keep it as a security deposit.

37
Increase Rent Price
The simplest, most effective way to
increase your revenue is to increase
the rent you charge.

But increasing rent can prove costly – fewer

tenants will be interested and your property

You’ll notice this is nota

bulleted list;
two ways to do it: for a reason. Before embarking on

1. Evaluate your market to determine if any

rates other landlords in your area are getting

current state
and for what quality and type of unit. Start
2. Invest in improvements to your properties
for which tenants are willing to pay more
because it will help you determine what types

of improvements will provide you the highest

return on your investment.

list off-street parking as an amenity tend to

rent for $100 more per month while properties

that have a covered back patio tend to

adding an awning vs. purchasing and paving

the empty lot next-door.

market is key to optimizing your business.

evaluating real estate in your area.

38
Tips for Evaluating Your Rental Market

Getting an accurate picture of your

rental market is one-part intu-
ition and two parts elbow grease.

-
sic understanding of what most

the area that do have that under-

trust the instinct alone. A little bit

of effort and research can provide
you a great deal of insight and bet-
ter equip you to charge the correct
rental amount and invest in the
right improvements.

39
Tips for Evaluating Your Rental Market

Make a Spreadsheet
lists their property for less than
create a spreadsheet. This will be
they ultimately rent it for – it usually
the backbone of all your research. It
goes in the opposite direction. Take
this into account and discount the
amounts listed by 5-10% (depending
on your market).

including information like other

Hit the Streets

you collected the information. This

are plenty that still only post a sign in
spreadsheet will be instrumental in
their front yard and call it a day. These
people often also have a history in the
market and have some great insight
understand.

Use Google
out their listing price but also pick
their brain. They could end up being a
spreadsheet with data. The best
great ally.
place for you to get started is the
same place most potential tenants

website people in your area use to

resource to get a feel for what

landlords are charging for rent. One
thing to keep in mind: no landlord

40
Tips for Evaluating Your Rental Market

Network with Connect with a Realtor

Local Landlords
Speaking of connecting with other
consulting a realtor can be a great

local real estate groups and business

organizations. Get to know those in

your best resource as you attempt

to keep your ear to the ground of of rental amounts as they relate
coming and going trends. and
other important rental metrics.
Realtors often also wear a second hat

41
Tips for Evaluating Your Rental Market

Create Pricing Tiers

To understand rental prices and
are not an outlier. When placing
be useful to think of your market as
ignore price entirely. Focus only on

spread in price and group properties

important that you create these take a look at the price of your tier
groups based on pricing alone. There neighbors. Are you on the high end
will be some outliers – a landlord
who has terribly overpriced their

could increase their rent – but by good opportunity to raise your rental
collecting a substantial amount of

the market tends to balance itself in

aggregate. answer as to why.

tier consists of poorly kept properties

or those whose owners have not

purchased their property. In the top

(but not exclusively) newly updated

42
Improve Your Property to Increase Rent

The intent of creating a tier list is to The list will likely be unique to your
help you identify pricing ceilings. If

handful of improvements that tend

to be universal in their appeal and
increase that price is to improve your
property. Take a look at the group of
properties one or two tiers above you.

-
space. Pay attention to how each of
them appears to impact their rental
price and estimate how much effort
and money it would require to offer
the same. High ROI improvements
Markets tend to have an allowable
range in rental price with very few
renters comfortable going beyond
-
going to limit your rental pool so se-
verely that it creates vacancies.

43
Improvements to Existing Property

ways you can improve your units and

properties to increase the value of
what you already have.

and the rental increase needed for cost of making the change (e.g. if an
improvement will cost $5,000
ROI as our target for improvements
with a long lifespan (like remodeling cost of making the change (e.g. if an

that require more regular updates. it increases your rental amount by

ROI is calculated by dividing the one-
year increase in rental revenue the
improvement will generate by the

44
Improvements to Existing Property

Renovate the Kitchen

are spaces tenants generally get

are more imaginative in how they

can make a huge difference in your

Expected Cost:

Upgrading your kitchen can run

Necessary Rental Increase (10% ROI):
anywhere from a few grand on the
$25 to $85
low end to north of ten thousand
dollars depending on the changes

can be an excellent way to replace

affordable alternatives. Butcher

even some manufactured options

like quartz can provide you fresh
countertops. If you have appliances

upgrading to stainless steel will add

a great deal of pop and give your unit
more of a high-end feeling.

45
Improvements to Existing Property

Renovate the Bathroom Update Lighting Fixtures

particularly appealing to prospective

a few hours of install can add a great deal of

can go a long way to impressing your renters.

Anywhere from a few hundred dollars to a

few grand can make a big difference. would be better spent elsewhere.

Expected Cost:

Necessary Rental Increase (10% ROI):

lifespan over ten years and keep the annual

ROI required low.

Expected Cost:

Necessary Rental Increase (10% ROI):$1 to $8

46
Improvements to Existing Property
Hire a Landscaper
selling a property. The view from the
and clean walkways will make your
the increase in rent will be multiplied
worthwhile.
Because landscaping is a regular
money from this investment than
of 110% in a given year.
Expected Cost:
Necessary Rental Increase (10% ROI):
47
Apply a Fresh Coat of Paint
of the property gives it an unkempt
adding life and vibrancy to your
building. Hiring local painters is
get it right. The price you ultimately
pay will be dependent on both the
size of your building and the amount
of work you take on. This value will also
be multiplied by the number of units
you have.
Most experts agree that a fresh coat
the lower-end of that and look for an
ROI of 25% annually.
Expected Cost:
Necessary Rental Increase (10% ROI):
$21 to $210
Improvements to Existing Property

Replace the Front Door

If the front door to your building is well

yet effective ways to improve the

rental value of your property is to
update it. Studies have shown that
updated exterior doors can increase

a difference. This value will also be

multiplied by the number of units you
have.

a front-door should last multiple

which should easily return everything

you spent on it.

Expected Cost:

Necessary Rental Increase (10% ROI):

48
Improvements to Existing Property
Furnish Your Rental
There are likely two scenarios in which
offering furnished rentals will be
long-term renters traveling across
country (like corporate housing) or
as a short-term rental. If your market
furnishing your rental is not likely to
be worth the money – renters simply
rental and maintaining that furniture
can be a hassle. If your rentals would
replacements than you would on
quality furniture to begin with. Ikea is a
great place to start and has plenty of
supports either of the two options
49
can provide tremendous value. Folks
looking for short or long-term housing
solutions from out of town are usually
willing to spend more to reduce
hassle. If you go the route of corporate
the bill. Expect to easily increase your
rental bill by 15-20% for furnished long-
for short-term.
Expect to pay a baseline cost of
around $2500 and add on $1000
per bedroom (e.g. a one-bedroom
so look for a higher ROI than some of
our improvements.
Expected Cost:
Necessary Rental Increase (35%
ROI):$100 to $175 (you will likely get
Implement High-Tech Features

-
tional improvements like those listed
above may represent only a small
portion of the ROI you can recapture.

high number of Millennial and Gen-

-
-
ty are still the most important factors

newer generations are also interest-

ed in smart-home style amenities.

A 2016 study by Schlage and Wake-

respondents were willing to pay

more for an apartment with high-
-
locks and climate control from their
phones. While 20% may not seem
needed for it to be worthwhile. Be-
cause of speed at which tech trends

market before making expensive and assume these features only

investments in improving your prop- have a lifespan of about 5 years. In

A and B rentals with a youthful tenant

a conservative 20% ROI target will
worth the investment.

50
Implement High-Tech Features

Programmable Thermostats
can connect to their thermostat
thermostats have been around
in some capacity for over 100
temperature of their home quite
literally from anywhere in the world.
documented and go far beyond
These thermostats also learn from
simple convenience. By allowing

automated scheduling that actually

and responds accordingly. Energy

programmable thermostat can
usage and savings both become
more visible.

a very real difference of as much as

Not all tenants are aware of this
one-hundred dollars.

the route of the programmable

tenants actually take advantage of

pitch during the walkthrough.
these features. A 2010 survey from
the Lawrence Berkeley National
Expected Cost:
for purchase and installation
respondents rarely or never use their
programmable thermostats. You can
Necessary Rental Increase (20% ROI):
$2.50 to $5

smart thermostats came to market.

Internet connected thermostats like
Nest from Google can automate the

51
Implement High-Tech Features

High-Tech Locks

smart locks are incredibly appealing

to many renters. Like most high-tech

pad for entry to a lock that connects

to your phone. The best versions
of these locks offer multiple entry

likely also allow your tenant to track

who enters their unit and when for an
added sense of security.

Rather than paying to replace your

you can simply reprogram them.

Expected Cost:
for purchase and installation

Necessary Rental Increase (20% ROI):

$2 to $5

52
Implement High-Tech Features

Smart Lighting
Smart lighting has a certain wow
You can purchase smart light bulbs
for as little as $10 a bulb. Smart outlets

call the electrician. Smart lighting is

as simple as replacing your existing
change quite a bit. Smart bulbs are
non-connected light bulbs with
also expected to last upwards of 8
smart light bulbs.

and set our ROI target at 5 years.

These internet connected bulbs
screw right into existing sockets
Expected Cost: $100 to $1000 per unit
and connect right to your phone.

Necessary Rental Increase (20% ROI):

smart plug adaptors that allow you to
$2 to $17
plug any device into an existing outlet
and make it “smart.”

to schedule lighting preferences

and of course turn the lights on and
off from their phone. Smart lighting
is easy to install and increases both

53
Implement High-Tech Features

Video Monitoring Security

System
Expected Cost: $100 to $1000 per unit

comfort and security go hand- Necessary Rental Increase (20%

ROI):$2 to $17
monitoring security system can go a
long way in providing both. Services

are easy to install and affordable.

Tenants can connect their phone and
monitor who is coming and going to
their unit.

These often also come with motion

sensor lighting and the ability to

probably seen videos of homeowners

or renters speaking to a careless
Amazon worker or an opportunistic

deal of value.

These platforms usually come

with a setup fee for hardware and
installation (although you can often
do it yourself) and a monthly fee for
an ongoing subscription.

54
Implement High-Tech Features

Online Rent Collection

A modern rental experience goes
beyond the physical space your
tenants expect a sleek experience
paying rent. P2P apps like Venmo
and PayPal offer the ability to move
to pay more in rent for that
produces better tenants and
improves your bottom line.
Expected Cost: $0 to $1000+ per year

incorporate many of the advantages Necessary Rental Increase: N/A

software. If you want to offer your

software designed for rent collection.

Some property management

software can run hundreds of dollars
Sunset
a month. Some rental collection Properties

services charge similar amounts

depending on your unit count. But
there are plenty of options that

tenants a professional experience

when paying rent helps encourage
more timely payments and
demonstrates your seriousness as a

55
Invest in Green Technology

-
ronmentally conscious renter and
property owner – apartments and
houses constructed today tend to be
far greener than their older counter-

-
sign ten years ago is now the mini-
mum required by code.

- and increasingly willing to pay more

ful of steps you can take to ensure for a “green” apartment or house.
your property stands out from the
- When it comes to increasing reve-

and Generation Z renters mentioned produce and the increased market-

56
Invest in Green Technology

What You Have

For a relatively minimal and

you can take these basic steps to

simple steps you can take to reduce
Energy Star light bulbs might not
impact and their energy bills. Look for compel a tenant to pay you more

properties more marketable to

in need of replacement. If you need environmentally concerned renters

sure to let the tenants know your units

reduced utility bills.

overall utility bill for the property by as Costs vary widely depending on the

And when deciding between generic

mind whenever improving or turning
your units can make a big difference
overtime.

grand for a window may seem like Expected Cost: N/A

Necessary Rental Increase: N/A

hundreds of dollars in annual savings
easily offsets the cost.

57
Invest in Green Technology

Install Solar Panels

Solar is quickly becoming a
monthly cost is often less than your
dramatically less expensive source
of energy than traditional sources
investment well worth it.
like coal and natural gas. As long
as your property has access to
regular sunlight for even part of the
are expected not in solar cells but in
solar energy storage. Batteries are
valuable investment.

in the coming years and as storage

are supplemental to your regions
existing energy infrastructure. In

swapped into and out of an existing

system. For those waiting to install
for fear that the newest model will
this energy contribution and your

the exception of an unexpected

all day.

upgrade your system to match the

latest advancements.
credit (ITC) allows you to deduct 26
percent of the cost of installing a solar
Expected Cost: N/A
energy system from your federal

Necessary Rental Increase: N/A

are additionally offset by creative

offer solar loans with no money down

58
Part 2
Reduce Costs
59
Reduce Costs

an incredibly straightforward equation:

number of ways you can increase your revenue.

can take on in order to minimize costs. Within these

ways that you can implement cost reduction. The

only thing left for you to do is pick and choose the

methods that will work best for your business.

Reduce Expenses
There are a handful of practical ways to modify your

business practices to minimize spending wherever

you can. Each of these opportunities is tied to

that will increase the overall health of your business.

The overarching advice: start getting your hands

dirty and think about your business as a business.

60
Manage your Own Property

Property managers are becoming

-
coming more expensive. Typical fees
range from 8 to 10% of rent collect-
ed. If you own and manage 10 units
How to Get Started

in property management charges.

started is fear inducing: What if

still a steep price to pay.

passive as possible is not merely the taking on when you manage your
result of inattention to their rental own rental units can help allay any

many of the below responsibilities

can be off-loaded to professionals
without hiring a full-blown property
easy way to start is to manage your
properties yourself. ensuring quality work.

61
Manage your Own Property

Marketing Your Rentals

Before you can start managing we would have recommended

Responsibilities include:

• Staging your units and taking pictures the quality of modern smartphone
• Posting your listings to websites and
other relevant marketing channels
relevant to your community
clean and there is plenty of lighting.
• Communicating with potential renters
• Leading showings and selling your unit

None of these tasks is particularly

62
Manage your Own Property

Screening Tenants

a quality renter. This is a critical step

in the process so do not overlook
its importance. A bad tenant will
make you wish you had a property
manager and a good one will keep

include:

• Establishing your acceptance criteria

• Creating an application form
• Running a screening report collecting

• Evaluating the quality of a potential

renter

These are also tasks that you can

to write it down your acceptance

criteria and stick to it to avoid fair
housing violations. We also strongly

in your evaluation process.

63
Manage your Own Property

Collecting Rent

Rent collection is where you make

scared of. Responsibilities include: idea to create a separate bank account to

hold the deposits. And when it comes to late

• Offering as many payment methods as

possible

• Reminding tenants of upcoming invoices feeling generous.

• Depositing payments into your bank account

• Appropriately managing security deposits

• Enforcing late fees

You want to make paying rent as easy as

possible. Give your tenants as few excuses

to miss a rental payment as you can.

64
Manage your Own Property

Handling Maintenance
Maintenance is one of the more

challenging aspects of managing your

the other management tasks to simply

pick up and start handling yourself.

Responsibilities include:

• Creating a system to receive and

organize maintenance requests
• Responding to tenants
• Assigning work if others help you with
maintenance
• Completing the maintenance task

Minor maintenance issues like updating air

of this yourself. But when it comes to bigger

maintenance personnel might normally

You can always hire a handyman for a single

time maintenance person yourself. This will

paying a property manager for.

65
Manage your Own Property

Dealing with Bad Tenants

never have to deal with this. But sometimes

a bad tenant is inevitable. When it does

• Evicting a tenant
•
• Enforcing late fees

Enforcing late fees comes up again because

on late fees creates a bad precedence

that many tenants will unfortunately take

already paying your property manager. So

taking on the responsibility is not much of a

by the book.

Now that you understand the

managing yourself and those against.

66
Dealing with Bad Tenants Pros & Cons

Pros Cons
There are a handful of powerful reasons to Managing your properties yourself is

manage your properties yourself:

drawbacks that you should be aware of

• before you get started:
You invested in property to make

• Large Time Commitment – Managing

units yourself helps maximize your your properties can take up a lot of your

constantly turning over units or dealing

• Lack of Knowledge – One of the great

as you look to expand your portfolio or advantages of using a property manager
perfectly time a sale to maximize your
return. The more closely you manage

should know your market and know their

estate investor. and engaging in online communities can

be a great way to close this gap.
• Risk of Messing Up – This con usually goes
hand-in-hand with the one above. If you

make a big mistake. Mistakes in real

particularly painful. But as long as you do

67
Choose the Right Property
Management Software

Managing your properties yourself

modern property management

software automates many of the
responsibilities and tasks we listed

absolutely no cost to you. If you go the

management software you choose management software should

will become an essential partner in
automate late fees for you. As we
your business.

fees is critical to keeping your

Below are some of the most notable
ways software can help.
Collect Rent Online
Property management software
should offer tenants multiple
tenants on the straight and narrow.
Good property management
software makes this easy by
automatically charging late fees
and forcing tenants to pay them
before paying any future rent.

to-bank transfers (like ACH) and

credit / debit card transactions.
Providing your tenants a convenient
way to pay rent will add a layer of
professionalism to your business and
help increase collection rates.
Online payments are also quick and
have to worry about taking time to go
to your PO Box or running to the bank
with a stack of checks and cash.

68
Choose the Right Property
Management Software

Effective communication is the back- If you do need to send a message

bone of a healthy tenant-landlord
relationship. You probably noticed management software likely
throughout the responsibilities includes messaging features that

property management revolve

from courting potential renters to

managing maintenance.

Property management software can

help with all of this. A good software
package will send reminders to

them when a document needs to be

handled automatically without any

effort on your part.

69
Choose the Right Property
Management Software

Automate Bookkeeping

theme with property management

software. Finding ways to take
work off your plate frees you up to
focus on growing your business or

of the most menial tasks you have

to perform again and again as a
landlord is bookkeeping: tracking

your income report.

These are all easily automated by

good software. If a tenant pays

you can take a quick picture of your

receipt and record it in your software.
Some property management
software will even allow you to
connect your bank account directly
so that expenses are recorded

organized than ever.

70
Choose the Right Property
Management Software
Find Better Renters
Bad renters are a nightmare. They
waste your time and cost you

start and property management

software can help. Most property
management software comes
with tools to easily advertise your
properties to a wide variety of listing

you receive inquiries from the most

high-quality applicants possible.

management software platforms

usually also contain screening

you a great deal about a candidate

for your property and help you steer
clear of those that will only bring

renting from a single platform makes

the entire leasing process that much
easier and results in better tenants.

71
Choose the Right Property
Management Software
Track Maintenance More Easily

Maintenance can be a huge hassle. the software rather than the tenant
No one wants to give their personal – no need to share your personal
info. You can also often forward
these tickets to your maintenance
team or even add them as subusers
miss requests when they come in.
And if you manage maintenance using. This will give them direct
access and the ability to setup
tickets with them can be a huge
nuisance. Property management
software solves both these problems
as it almost always includes some
form of a maintenance portal.

Tenants can usually submit

any other required information to

share their maintenance problem.
This info is stored in your software
for you to review whenever needed.

72
Choose the Right Property
Management Software

Cloud Storage

Cloud storage and the ability

to access your information and
documents from anywhere is

in the rental property management

surely heard horror stories of

landlords whose hard-drives

years of rental and business history.

particularly if you receive a dreaded

piece of mail from the IRS (we barely
dare to say the word “audit”).

Property management software

completely eliminates this risk. Even
beyond storing your information

pull up your property management

answer right then and there.

73
Minimizing Maintenance Costs

If you do go the route of self-

control over your maintenance

maintenance expenses.

Learn the Maintenance Basics Fix, Patch, or Replace Flooring

Youtube has truly revolutionized

the accessibility of becoming a DIY all get banged up sometimes.

any maintenance task or renovation.

but chances are high you can patch

Providing actionable how-to advice is

you identify places you can save. may need little more than a razor
There are a handful of basic tasks you blade and the property adhesive.
This is also a great reminder to hang

feeling more adventurous (and save is completed. You never know when

few of the places you can start.

74
Minimizing Maintenance Costs

Install New Fixtures

etc. – all of these are incredibly easy

to install. The manufacturer wants way to offset some of the cost of
to make setup as simple as possible

touch up wherever there were dings

investing in high quality tools. Make

sure you have the right stuff to get
some caulking and sealing. This is an

from scratch. bit of time. Throw on a podcast and

knock it out in an evening.

75
Minimizing Maintenance Costs

Plumbing and Electrical

should skim or skimp. Be extra cautious the

doing much in the way of electrical wiring

in either of those categories tend to be less

• Tightening and resealing leaking pipes

the task yourself.

• Unclogging slow drains

• Drain your water heater and maintain
appliances
•

yourself:
• Update sockets and switches
• Maintaining and replacing breakers
• Hook into existing wiring

number of videos and tutorials online for

step-by-step. This is not a place where you

76
Touch Up Instead of Replace

new. Especially when renovating or

to touch up and repair instead of

replacing can save you plenty.

Extending the life of your property

(and the property in it) is also
important. A small investment
overtime can help you fend off a big
investment that comes earlier than it

lifespan. Bringing a technician in to

give your AC and furnace a tune-up
once or twice a year can also make a
big difference.

Take this same approach with all your

bottom line healthy.

77
Other Ways to Save

There are plenty of other great ways

to reduce expenses and save money.
Below are a few oft forgotten options
to keep in mind.
Coupons & Discounts

web browser plugins like Honey and

Rakuten can check for coupons
and codes instantly as you check-
out there.
out and apply those discounts for
you. The very oddly named Camel
Camel Camel and similar sites can

kinds of discounts they can get on
materials. Check with big box stores
to see if they have any new models
coming in that will push their old
models out and provide you with
some clearance opportunities.
help you compare prices over time
on marketplaces like Amazon.
Spend some time getting savvy of
the potential deals in your area. And

There are also plenty of aggregator

can strike up a relationship with a
sites that collect as many discount

giving you a special below-market

price for your loyalty.

78
Lower Utilities Costs

One of the greatest expenses that landlords

face is the cost of utilities. Even with tenants

utilities are likely still a considerable drain on

your monthly income. The good news is that

landlords have a myriad of options when

it comes to reducing their utility costs. All it

takes is a little bit of ingenuity.

recommendations for reducing utility

work for your business. The next section

provides a step-by-step process of how you

and the last section lays out what you can

what you stand to save. These sections will

allow you to determine which of these ways

of reducing the cost of utilities make the

most sense for you and your business.

79
Use Green Appliances
How using green appliances reduces utility costs:
investing in green appliances and creating
Landlords have plenty of options when it
as we continue to see the market grow. It
when shopping. Landlords can potentially
easing into the world of eco-friendly
appliances. There is no need to rip out your
current appliances that are still in good
appliances that already need replacing with
greener alternatives.
Although there will be an up-front cost for
your tenants in the end. Not only will you see
your green appliances as a marketing tool
as a result of upgrading to better appliances.
80
How to begin using green appliances:
• Assess your property. Figure out what
needs replaced and which appliances
make the most sense for you to upgrade.
• Shop around. Not all green appliances
are created equally. Find appliances that
are reasonably priced and promise low
energy use.
• Install appliances.
• Increase rent accordingly. To boost your
little more each month. Even though they
overall.
What you will save:
Up-front cost:
Potential savings:
bills.
Insulate Windows
How insulating windows reduces utility costs:
windows are allowing heat to escape during
the winter. This requires tenants to turn up the
The good news is that you have a few options
which are inexpensive.
Windows can be insulating using plastic
liners that minimize draft and reduce loss of
heat through gaps. These plastic liners are
only a few dollars each and take minutes to
install. You can also buy specialty drapes
choose to combine these two methods for
maximum draft prevention.
81
How to begin insulating windows:
•
liners for optimal insulation.
• Purchase the product. Be sure to shop
is cheaper than buy individuals/small
bundles.
• Install the insulation. Either you or your
maintenance team will have to install
take more than a few minutes per
window.
• Replace when needed. While tenants can
it will need to be replaced at some point
due to normal wear and tear. Be sure to
check when you do your regular rounds.
What you will save:
Up-front cost:
Potential savings: Up to $100 each winter.
Change Air Filters

Energy Star recommends changing your

•
will likely be the cheapest option.
that has a demonstrable impact on both air •
your maintenance team install new

them to install themselves. Having your

maintenance team do it will take up more

done correctly.
• Stay on schedule. Be sure to set
during the winter months when your system

regularly and consistently.

have pets — their dandruff will only cause

further wear. What you will save:

Up-front cost:
Potential savings: 2%-7.5% of monthly energy
bill.

82
Change Light Bulbs

How changing light bulbs reduces utility costs:

How to begin changing light bulbs:

•
little bit more will save you money in the long

bulbs before purchasing.

reduce your energy costs. These bulbs also • Purchase the bulbs. Buying in bulk
will likely be a better deal than buy
individuals/small bundles.
• Install the new bulbs. You can either
overtime.
replace the bulbs yourself or have
tenants do it.
• Encourage consistency. While tenants

themselves rather than putting in a

tenants to do so anyways. It will save both

of you money in the long run.

What you will save:

Up-front cost:
Potential savings: 25%-80% of the energy
cost for using traditional bulbs.

83
Avoid Heating Devices That Use
Electricity Or Heating Oil
How avoiding heating devices that use electricity or heating
oil reduces utility costs:
Electric heating is the most common form
massive impact on your energy costs. One
alternative is combustion appliances — on-
— but these come with drawbacks. Your best
bet is to go with modern alternatives like
geothermal and solar energy.
save thousands overtime. Not only will your
also be able to sell your excess energy back
84
How to avoid such heating devices:
• Do your research. Before investing in
allow you to save.
• 2. Install the energy source. To ensure
professionals to perform the installation.
•
are substantial tax breaks available
to those who invest in green energy
sources. Be aware of all that apply to you.
•
directly for the use of your energy.
What you will save:
Up-front cost: $$10-15k after tax credits.
Potential savings:
Use Shady Landscaping
How using shady landscaping reduces utility costs:

One of the greatest ways to reduce energy How to begin using shady landscaping:

costs is to utilize shady landscaping. Energy. • Research your area. What will grow well in
gov claimed that neighborhoods with

adequate shading experience temperatures to know what will do best in your area

of up to 6 degrees cooler than unshaded before purchasing.

• Make a plan. Figure out where landscaping
should go to maximize shading.
other landscaping features that provide
•
shade will demonstrably lower your costs of

cooling. The fact that updating landscaping

• Contract out the work. Hiring a professional
will yield the best results. Go with a
bonus. landscaping company within your price

What you will save:

Up-front cost: $50-200 per tree.

Potential savings: $Up to 25% of your summer
cooling bills.

85
Change/Lower Water Heater Settings
How changing/lowering water heater settings reduces utility costs:

Typical water heaters come with a default How to begin changing/lowering water
heater settings:

• Settle on a temperature. While you can go

is more than likely “no.” You can turn your down to 100 degrees fahrenheit and few of

water heater down to as low as 100 degrees

110-120 degrees fahrenheit.
•
and set the temperature dial accordingly.
and it costs you nothing to do.
This should be easy to do and take only a
few minutes of your time.
•
to upset your tenants to capitalize on this
little hack. If they complain about the water

What you will save:

Up-front cost: $0
Potential savings:
degrees fahrenheit dropped.

86
Use A Water Heater Blanket

How using a water heater blanket reduces utility costs:

A great way to reduce your monthly How to begin using a water heater blanket:

energy bill is to insulate your water heater • Purchase a blanket. Although some
with a heater blanket. They are relatively

the cheaper ones work well enough to be

thereby requiring less energy. Water heater

quality for the lowest price.
• Install the blanket. Heater blankets are
usually installed by simply wrapping the
friendly.
blanket around the heater and securing it

minutes.

What you will save:

Up-front cost:
Potential savings:

87
Lower Financial Expenses

account every month. You probably

to lower any of the three can have

a huge impact on your monthly ex-
penses as a real estate investor.

Take Advantage of All Tax Breaks

With the exception of a small per- We could write a whole book on tax-
centage of masochistic accountants es for real estate investors (plenty of
who exhibit psychopathic tenden- -

doing their taxes. Even if you set aside

an appropriate amount to hand over
your bank account drain down with
nothing tangible to show for it is never
fun. But for savvy real estate investors
who understand the power of depre-
tax season can be fun. Many property
owners are able to lower their per-
sonal tax bill by so much that they get
-
es and savings are one of the big four
wealth generators a rental proper-
We strongly advise that you hire a CPA
to handle your rental property related
-
you should become familiar with:

88
You’re a Business, Not an Investor

considered either a:

How to begin using a water heater blanket:

• Business owner – you engage in the

business regularly and continuously to earn

• Real estate investor – you passively invest

and are not heavily involved in regularly
managing your real estate
•
you repeatedly report no income to the IRS
It is a tremendous advantage to be
considered a business owner and
to a number of tax deductions you

the properties or you pay a property

to maintain accurate records in the

advantages. case of an audit.

89
The All-Powerful Operating Expense

in the value of an asset overtime. For

you to lower the income you received

Depreciation is incredibly useful

recaptured upon sale of the property.

not based on the original purchase

already taken.
associated with running your
business.

recaptured. This means it lowers
your tax bill with no negative
repercussions. To qualify as an
Talk to your CPA about how best to
maximizing operating expenses vs.
depreciable expenditures. It can
make a big difference on your tax bill

and reasonable in amount. sell your property.

90
De Minimis Clause

The De Minimis Clause is one of the

most useful tax deductions available.
It allows you to currently deduct any

regardless of whether or not they

are an improvement or repair. This
allows you to quickly capture the
depreciable value of an asset with no
future consequence.

depreciate it over 5 years like you

bill without depreciating the value of

your property.

multiple components to count each

be aware of it as you make purchases

each component is individually less to help you properly prepare and
optimize your tax savings.

91
Other Tax Tips
A few other smaller items to keep in mind in preparation of tax season:

This is a tax deduction that allows you

divide the square footage of your
costs associated with working out of
the entire home. Multiply this factor
available if: by any expenses to get your home

• Your rental activities qualify as a business

Track ALL Expenses – we mentioned
• the importance of good record

• You use it on a regular basis. track all of your rental business

related expenses. This includes any

The deduction includes any direct

possibly record. This will prove useful

for two very important reasons:
can also deduct expenses that are

•
minimize your tax bill and maximize your

• It will protect you in the case of an audit

these amounts in their entirety.

consequence of aggressive tax

There are a number of different ways
deducting. Protect yourself by
to determine how much you can
maintaining excellent records.

92
Challenge Your Property Tax Assessment

The taxable value of your property

additional tax on your income – you

might even pay less. But that is not using a precise mathematical

truly unavoidable. the county assessor would like to

each property is unique in one way

the percentage depends on your
inescapable variance in the numbers
out of your pocket based on the assessors give. If you believe your
value of your property. If you have a
property that has been assessed at the steps you should take:
a low value in comparison to other

savings. If the value is higher than the

reason to dispute it.

93
 Challenge Your Property Tax Assessment

here are the steps you should take:

1. Act Fast – Most municipalities only allow Request a Review – Before formally
you to challenge the assessed value of

conversation can get you. Present your

good idea was to whether or not you have

a good case and a receptive audience.
check to make sure the information they
and submit your request.

respond right away if you want to dispute 5. Appeal if Needed – If the review process

option is to appeal the decision. This can

2. Check the Value of Other Similar Properties be a long drawn out process and you may
wish to hire a lawyer.

than looking for the amount a property

tax value. This is likely available on the the opinion of your local county tax

or even thousands of dollars in

assessment is out of line.

Consider Hiring an Appraiser – Depending before putting too much work into it.

94
Patience is one of the most valuable assets

what that will do to your potential savings.

Most banks will let you roll the closing costs

rate on your mortgage. your monthly payment by even a couple

response to a global pandemic (once

your property if you can lower your rate
by .5% or more. Any less and it depends
banks would (and did) plummet. As a real on closing costs and the time it will take.

property.
Minimize Turnover

Everyday that your property or unit remains

out a new loan to pay off the original loan. If
paid. Having long periods of turnover can
this can also be an opportunity to cash out
some of that value for other investments. The let this happen to you. We have curated a list
new loan will bring with it a new interest rate

you a lot of money.

95
Find Good Tenants

Good tenants are typically ones that are

• Research your ideal tenant. You should

low-maintenance. Finding — and keeping —

they want out of a rental property. Giving
prospective tenants what they want
will attract them to your property and
encourage them to stay.
The biggest way that good tenants minimize
• Market to your target demographic. Using
turnover is by staying longer. Having one
good tenant who occupies your unit for three
ads will bring in prospective tenants. Make
years costs you a lot less than having three
sure that your choice of marketing attracts
mediocre tenants who only stay for one year

• Complete screenings. Once you start

screenings. Screenings should cover credit

cleaning to do once they leave.

96
Upgrade The Property

How upgrading the property minimizes turnover:

How to upgrade the property:

even longer is to upgrade the property.
• Pick your tenants. The goal with updating
Tenants are less likely to leave if you put
units that are currently occupied is to keep
the tenants renting them. Only offer special
upgrades to tenants who you think deserve
it and who you hope to stay.
aspect of the property. Staying up to date on
• Assess the property. Figure out what could

can even discuss with your tenant what

the value of your property.
they would like to see updated.
• Begin upgrades. Start with what needs
Even though updating your property will come
updated the most. Then move on to the
requests of your tenant.
rent accordingly. Updating incrementally
•
throughout a tenants stay will also give you
less work to do once they move out.
but it is okay to ask for a little more over

turnover here — you want them to stay.

97
Give Discounts

How giving discounts minimizes turnover:

Giving discounts to new tenants — or How to give discounts:

even pre-existing tenants at the time
of lease renewal — is an expensive
way to show your tenants that you
care. You can either research and
curate a list of discounts offered by
local businesses or buy a coupon
• Find the discounts. Whether you choose to
put together a list of discounts yourself or
can be used in your area.
• Give out the discounts. You can give them
out on the day of signing or on move in

especially thoughtful gesture for them out as their lease is running out as an
tenants who are moving in from out
of town.

when you will hand out the discounts.

Little things like giving out discounts
can be the difference between you
and your competitors. Showing
tenants that you value them and
their business will make them more

moving on to a different property.

98
Collect Rent Electronically

How collecting rent electronically minimizes turnover:

How to collect rent electronically:

people want to pay for things online. • Pick a property management software
Rent is no exception. Paying online is provider. There are many providers on

than sending in checks or cash. products and services. Shop around and
Offering tenants the ability to pay
online will you set you apart from your • Set up. Getting set up with most property
competitors and act as an incentive
for lease renewals. are resources available to you if you need
help.
Accepting online payments also • Share the payment portal with your tenants.
Property management software provides a
platform for tenants to pay online. They can
typically choose between ACH/eChecks
or do your own bookkeeping. Using
and credit cards as their payment method.
property management software to
collect rent electronically does all of
the hard work for you. It even enables
tenants to automate payments
and allows you to send payment

payments.

99
Remember Special Dates

How remembering special dates minimizes turnover:

Remember special dates such How to remember special dates:

•
holidays is one of the little things you you can send out an email with a form
can do to set yourself apart from
other landlords. Whether you send
out a text/email or give out a small in the signing process for new tenants.
• Set reminders. A great way to remember
your tenants how much you care. when a date is coming is to set a reminder.
Going that extra mile is what will
encourage your tenants to continue
renting with you. help you remember.
• Recognize the date. For smaller occasions

text on the day of will likely be enough. For

out a small gift to all of your tenants.

100
Remember Special Dates

Decrease Vacancy

fear: vacancy. You might think that there is

that some period of vacancy is always to be

There are a few simple steps that landlords

can take to reduce or prevent vacancies in

you here.

vacancies have been broken down into 2

actually decreases vacancy and allows

you to consider how it might work for your
business. The second section breaks down
each method step by step so that you can

never before.

101
Be Prepared & Proactive

How being prepared and proactive decreases vacancy:

When you know a unit is about to How to be prepared and proactive:

• Reach out about renewals. Keep track of

watch it happen. Being prepared
and proactive can decrease or even days before their end date. This gives them
eliminate vacancies. But what does time to start thinking about resigning.
• Offer incentives. If a tenant has been low

and acting before vacancy becomes

an issue.
•
discuss a renewal. You can even offer
incentives to make resigning a more
attractive option. If a tenant informs
you that they will be moving out at
the pot. There are plenty of small things you
could offer to convince them to stay.
tenant moves out to start looking for
replacements. As soon as you know that the
property. Online tools are your friend.

top of the ball will save you from lost

money at the hands of vacancies.

102
Maximize Marketing Efforts
How maximizing marketing
efforts decreases vacancy:
minimizing vacancies is marketing
your property. In the age of the
than ever to help you market your
capitalizing on those resources.
you should highlight the most
while being realistic about its
Having high-quality pictures and
informative descriptions will set your
listing apart from the others. You also
have to choose the best methods
of marketing for your business. Your
primary options include online listing
103
How to maximize marketing efforts:
• Photograph your property. Allowing
prospective tenants to see your property
in its best light might convince them to
consider asking a friend or hiring a
professional
• List online. Online listing sites will likely be
your best bet for attracting prospective
tenants. There are plenty of sites on the
property for free.
• Invest in paid searches. Sometimes SEO is
not enough to get your site high enough
in the search results. Investing in paid
searches will allow you to reach more
renters in less time.
• Take out a print ad. Although it may seem
local newspaper is a great way to reach
prospective renters in your area.
Sell Partial Months
How selling partial months decreases vacancy:
Sometimes it works out that your
current tenant is able to move out
your new tenant is able to move
always the case. Maybe your new
until a month after you want them
to move in. Or perhaps your current
tenant needs an extra couple weeks
to get their ducks in a row. Whatever
reduces the amount of time that your
property remains empty.
104
How to sell partial months:
•
way of prorating rent for your tenants is to
charge by the day. Simply divide their rent
will pay $16.67 per day.
• Update their lease. As with any change to
update the contract accordingly.
• Collect the payment. It is advised that you
best option is to add the cost of the partial
the partial month is for a pre-existing tenant
Conclusion

When speaking with prospective landlords and real estate investors, we often hear
the phrase “passive income.” Budding property tycoons plan to build out a portfolio
that will keep the money rolling in with little-to-no effort on their part. This is a bit of a
misleading description of real estate though. The best investors will tell you: there’s
nothing passive about success.

Sure, with the right investments, the right system, the right team, and the right
property management software, you can reduce your daily effort to a minimum, but
maximizing the profit you get from your properties takes thought, effort, and care.

Hopefully this eBook has served to help you reduce how much work that really is, but
remember, it’s still work. We’ve provided countless examples, ideas, and how-tos for
reducing costs and increasing revenue. It's up to you to evaluate those options to see
what fits best for your investments. Good luck!

105
 About Us

Property
Management
Software
Built for you
At Innago we have one simple mission, to create intuitive resources that any
landlord can pickup, learn, and implement. Every e-book, article, and tool is
created with this in mind. We feel that with the right information and tools, you
can grow your business and build passive wealth, all while providing an
excellent experience for your tenants. Our flagship rental management platform
is designed to make your life easier by saving you time and money. We believe
this is one tool you will not want to miss out on.

Features Offered
Lease & Tenant Management Custom Applications Tenant Screening
Automated Communication Late Fee Enforcement Listing Syndication
Online Rent Collection Digital Document Signing

Sales Contact information

513-715-8813 sattar@innago.com www.Innago.com

106