Last 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.