Happy New Year all. I am working on some goals for 2008. The top one (only one so far) is to start treating our rental properties more like a business and less like a hobby.
When I first started in the biz, I would pick up rentals as an aside to my main business…selling repos. I had four or five for awhile and I did not take em very seriously…if they were full and paying, fine, empty> No problem, it was paid for, and i figged better empty until the PERFECT tenant came by.
Well, we have 59 rentals now, and i as type we have 11 empty, or put another way $8,250 not paying this month or even worse, $100,000 not collected this year if we don’t take them seriously. WOW! That is huge money.
What has happened, is the tail of the dog is now wagging the entire dog. Rentals have become our most profitable portion of the business. Sales are off over 54% year to year…profit from sales down 70%+. I stroked some checks to some new advertising venues and am getting ready to offer rentals like this:
“First month free, a last month rent and $500 deposit to move in” special to fill these vacancies and get these empty homes cranking out some rental income.
Until I get 95% occupancy (full for us) I am not taking on any more work at all…
Anyone else have plans made for 2008? I would reallty like to hear them!!