As the year comes to an end, we wondered how landlords increased their passive income in 2016. So we asked some successful Cozy landlords and real estate investors how they made extra money from their rentals. We hope their tips and stories will inspire you to make some new year’s resolutions, so your rentals will be even more profitable in 2017.
Paula Pant is the founder of the award-winning website Afford Anything, and a writer and speaker who specializes in personal finance, real estate investing, and entrepreneurship.
“The biggest cash flow increase this year came from renovating one of my properties. We’d had the same tenant living there for three years; when he moved out, we took the opportunity to modernize the house. We added stainless steel appliances and granite-tile countertops, and we replaced the carpet with porcelain tile that resembles hardwood. As a result, we were able to raise the rent by several hundred dollars more per month. Here’s the full story.”
Zachary Ruschau is one of three firefighters we profiled earlier this year on the Cozy blog. He bought a farm with his dad, and that real estate investment ignited his property investment career. Now he owns 35 single-family properties near Dayton, Ohio.
“Cozy has continued to help me increase the cash flow from my rental business, because I don’t have to pay for traditional property management services. As my business continues to grow with new rentals, the savings keep adding up. I look forward to calculating my cash flow next year with even more properties and no property management fees.”
Al Williamson is a civil engineer and the founder of the Leading Landlord blog, which discusses innovative ways landlords can create new income streams, reduce expenses, and grow their equity. He authored “Building Wealth with Inner City Rentals,” a book that inspired us to write about him this past summer.
“I set aside one unit in my small apartment complex for Airbnb and furnished short-term rentals. I was able to increase my net income by 30% and expect to increase it by 50% in 2017. You can read all about it here.” (For more of Al’s tips on maximizing rental income, check out his story on Landlordology.)
Dakota and Chelsea Gale are digital nomads who explore the world by bicycle, Sprinter van, and backpack while Dakota works remotely. Traipsing About chronicles their adventures, thoughts, and travels.
“We started streamlining utility bill payments by having our tenants make one-time monthly payments through Cozy. Instead of dealing with the headache of switching names with the gas and electric company for each new renter, we just leave our names on the accounts and bill our tenants in one lump sum each month. We used to just eat the utilities cost for the shorter leases to avoid the headache, but now we have some extra cash!”
Phil and ElkeFarinacci live and work in Troy, New York, where they manage 46 rental units, a side business they’ve grown slowly during the past seven years. We profiled them on the Cozy blog.
Jimmy Moncrief is a multi-family real estate investor and bank credit officer, so he knows both sides of the mortgage desk. He wrote a free bank negotiating guide, which you can find here.
“The biggest thing I have done this year is move ALL my tenants to electronic payments. This will improve your cash flow and build sustainability in your business.”