Search

Home > All Real Estate All the Time > All Real Estate 052: Landlording, Cash Flow, and Profits
Podcast: All Real Estate All the Time
Episode:

All Real Estate 052: Landlording, Cash Flow, and Profits
Category: Business
Duration: 00:11:26
Publish Date: 2017-04-14 08:00:00
Description:

So we're talking about cash flow and we're talking about how maw and pa landlord probably loses more money than they think they are by not hiring a property manager. Since Julie is our resident expert property manager give me some examples.

Let's say the HVAC, the heating and cooling unit goes out. I call my contractor who I have a working relationship with, I send him a lot of business. He goes out takes care of it brings me the invoice I pay him and then when rent comes in the next month I deducted from the rent and then the owners the remaining amount if Ma and Pa outfit are doing this it may take them a week. And honestly right now these HVAC companies are running about a week or longer to get to calls. So they're going to have a tennant sweatin' their brains out pretty much. And they are going to get upset. Yes. I have tenants if they have to wait two hours I get upset. Yes. So what do tenants do when they get upset. Yeah they yell they tax they scream and then if they have to wait much longer they like to pull the disappearing act.

So if I'm a ma/pa landlord and I've got a buddy that does heat and air units and he can't get there for a week I'm up a creek with my tenants.

You need to get somebody out there quickly because it's uninhabitable.

As long as they have air conditioning when they move in, they expect to have it all the time. A lot of tenants will work with you they know it's hot they know it's summertime but they want it done quickly. Yes. Now you as a property manager you're going to get a discount you've probably got somebody almost on staff. Can Go look at these properties within an hour or two or at least that day. Yes. And ma and pa they may spend two or three days getting quotes from different air conditioning guys.

Then it's two or three days later and then they actually do the work and you just lose a lot of time which equals money and they probably end up paying triple what I would because I have the connection.

The other thing is they're going to have to come out of this with their money with their money in their pocket. Yes. So what's cool, and I think when ma and pa are deciding whether or not they need to go with the property manager they're going to look at the end profit in there and say well I didn't get as much money this month and you can say Well remember I took this money out for the A C unit versus you have to come out of pocket. Yes and a lot of people are living month to month and they can't afford to come out of pocket for new heat near unit. So it actually benefits them to have it come out of the rent. Yeah next month. Yeah. As you know it's just a balance.
Total Play: 0