Have You Increased Your Duplex Cash Flow Lately?

said on October 21st, 2010 categorized under: Tenants

Water tap dripping dollar bills, Water waste conceptLast night I spoke a with a long-term duplex owner struggling to decide whether or not he should sell.

His property has a positive cash flow every month, but with children and a house miles away, he no longer wants to be a landlord.

He also knows his duplex is no longer worth what it once was. Knowing that, he grudgingly leaned toward keeping it.

I asked him what his decision would be if he had a better cash flow.

His mood and his position quickly brightened.  The answer was easy. He’d keep the duplex.

I reminded him there might be ways to do just that; by reviewing the property’s expenses.

I asked if he’d shopped his insurance rates lately. No.

Had he reviewed the water bill? Installed low flow toilets or water-saving shower heads? No.

Had he increased the fees for laundry by 25 cents a load? No.

Had he passed on any rental increases? No. He was afraid his tenants would leave if he increased the rent.

I asked whether he thought they’d rent a truck and bother their friends for help moving heavy furniture over $10-25 a month. He didn’t think so.

By the end of our conversation we’d found ways to increase his cash flow by more than $100 a month.

He still didn’t want to be a landlord, but the raise in pay helped ease his pain.