Owner of 7 parking spaces and garages, Christophe explains how he has boosted his rental yields with a few tips. In this article, we will present his rental strategies that really work.
- Why did you seek to boost your rental returns
- What’s the first trick you’d like to share with us
- Thanks for the great advice, so what’s your second trick
- To conclude, what is the economic balance of these two actions ?
Why did you seek to boost your rental returns
I am lucky to have found good deals that allow me to get a very good return on investment. The Platinium members 💎 of the club can see my accounting results from the exchange platform. Some members have come up with great ideas to make more money legally. So I looked at my situation and thought about a strategy to further improve my rental income.
What’s the first trick you’d like to share with us
When you own several sites, you need to allow some time to manage your tenants. Even if it is very fast, there is administrative work to be done. My first piece of advice is about the money coming in. I spent a lot of time every month preparing my check remittances to send them by mail to my online bank.
I looked for a solution to get my tenants to pay me with monthly bank transfer. The answer came with a new tenant who was worried that he would not be able to pay the rent. Before the 15th of the month whereas I asked for payment before the 10th of the month. I spontaneously offered to give him an extension if he set up an automatic bank transfer from bank to bank.
A legal formula had to be found to include a new clause in the lease contract. We talked with club members to draft a new chapter in the lease agreement to enshrine this idea. If payment is made by cash, the lessee agrees to pay the rent by the due date indicated in the “monthly rent amount” section above. Nevertheless, if the lessee sets up a payment by direct transfer to a bank account ; the lessor authorises an additional 5 days for the payment of the rent. »
I proudly proposed this rental contract update with each tenant to realize that this delay was convenient for all the tenants and they all wanted to set up a transfer. You can download the club’s free lease with this update by clicking here. Since then other tenants have come and the strongest thing about this idea is that they are the ones who ask for this option every time. By reducing the time I spend managing the checks and my shipping costs… thus boosting my profitability !
💡 Did you know that ?
64% of investors neglect the income/time spent factor, yet it is one of the bases for rapidly boosting net profitability.
Thanks for the great advice, so what’s your second trick
I’ve stayed in the same vein by looking for another idea to reduce the time I spend on my monthly rental management. Most tenants want to receive a rent receipt each time they receive payment. I use the club’s free rental receipt template but I have to put them in envelopes and send them individually. To save money I have suggested to my tenants to send them by email. But legally, the law of freedom of information does not allow us to do so without written authorization.
Solution is to include a clause in the lease contract to oblige the tenant to accept mailings. “The lessee agrees to receive rent receipts electronically using the e-mail address that was entered at the beginning of this contract. The bad experience of another member of the club. Put in difficulty because of sending receipts by email without having obtained prior agreement to allow the tenant to lighten the money he owed the owner . This new clause will allow to resolve all discussions on freedom of information when sending receipts by mail and to cover oneself in case of dispute.
To conclude, what is the economic balance of these two actions ?
If I count as a whole for my seven car parks. I earn the postage costs of $ 6.39 per month (8 stamps at the economy rate of $ 0.70 each, 1 stamp to send my cheques and 7 stamps to send the rent receipts, not forgetting the cost of the 8 envelopes, $ 0.048 each and my printing costs of $ 0.41).
I can consider that this saving in supply pays my monthly fee of $ 5 to the investors club. You see, we have plenty of tricks with which you will no longer have an excuse for not joining our investor club! One should never underestimate small savings, they are two simple little things that make me earn a little money and slightly boost my overall profitability with $ 76.68 more at the end of the year … But the most important thing is the time that I save each month by not managing this administration !
If you want to learn more tips to boost your rental yields, then join our investor exchange platform for only $ 5 per month… Your tenants won’t see you coming and you’ll make lots of profits !