Are You Charging Too Little?

DO YOU EVER WONDER WHAT THEY’RE NOT TELLING YOU?

As a property owner with an interest in creating a steady stream of rental income, I’m sure you’ve done your research. You may have even read books by authors like Guy Kawasaki, Brandon Turner of Bigger Pockets, or Gary Keller the CEO of Keller Williams. There’s plenty of information out there…BUT there’s also a big “catch”. You see, any and all of the information out there in books, podcasts, blogs, and elsewhere is inherently flawed. It’s doomed to be wrong and could end up causing you to lose your investment. Can you guess why? I’ll tell you why…it’s what we like to call “lack of specificity”.

It may sound fancy, but it’s pretty straight forward. And honestly, it’s almost common sense why following those guys word for word could cause problems for you. It means all those “do this”, “do that” investment tips are NOT specific to you. Not your city. Not your house. Not your personal financial situation. Heck, it might not even be relevant to your state! It may seem innocent enough, but I’ve been doing this a long time. I’ve seen how bad advice can lead investors down an equally bad path. I once worked with a guy who was undercharging his tenants by $470 a month because he was following some formula he found in an online investor forum. And I know what you’re thinking… So? Some rookie underpriced his rental and lost a few bucks? What does that have to do with me? Well, for starters – he wasn’t a “rookie”.He had two properties and several years under his belt. And secondly, losing almost $6,000 a year isn’t a few bucks. Think about it, could you use an extra $6,000 right now? Of course you could! We all could! Whether it’s to buy another property, pay off your car, or maybe you put it towards your kids’ college tuition.…but hold on a second! Before you spend all that money in your head, what if I told you that $6,000 wasn’t “extra” at all?

Things happen. And sometimes they are costly things like your AC dying on one of our sweltering 105 Texas summer days. That’s $6,000, Easy! Without that money you can’t afford to fix the AC. And without the AC working your rental is no longer in a “livable condition” for your tenants. And you and I both know – the second your investment stops being “livable” is the second that asset becomes a liability. Sure, maybe you can put it on a credit card? Now you’re paying 24% interest on that $6,000 to a tune of $1,440 a year in additional fees. Or perhaps you use the money from savings. No interest lost, but what if your car breaks down? The trip you were planning to celebrate your anniversary? Can you even afford that now? You know what would be better than ALL that crazy stressful money juggling madness I just mentioned above? Charging a competitive rental rate on your property and putting a percentage toward unexpected repairs like a blown out AC. Instead of being blindsided, you’d be ready. You have a rock solid plan in place to handle the hiccups. And your tenants? They spend the night with the fans on full blast and get a brand new AC in the morning. One that blows icy cold air while using much less energy. It’s a win/win for you both. And those win/win moments create long term tenants and long term rental income for you! So why am I telling you all this?

I want you to know that requesting one of our complimentary Rental Analysis consultations isn’t just some gimmick. Not even close. It’s how you PROTECT your investment. Your livelihood. And your reputation as a fair and compassionate landlord. Don’t let some silly “lack of specificity” gotcha get the best of you. I may not be a New York Times best-selling author… But I CAN tell you exactly how much rent to charge on a 2,345 square foot, 3 bedroom/2 bathroom bungalow on the East side of South Lamar that’s steps from the bus line and walking distance to Torchy’s. And don’t let anyone tell you differently – there is a “taco tax” around these parts! So if you’re ready to know the truth about your investment property, we would be happy to crunch some numbers for you.