Step 3: Mine For Gold
Get more out of your tenants. Another popular term in banking and in retail is ‘share-of-wallet’, which is defined as ‘the percentage that you receive of a customer’s total spending over time’. One of the best ways to increase your profits is to expand the services you provide your tenants. This will ultimately bring in much more money than just raising the rent alone can do. And while rent increases are often necessary, they do irritate tenants. But finding new ways to meet their needs (and charging for it) helps them and you by increasing the amount of money they spend with you! Truly a win-win.
So, what other tenant needs can you meet to increase your share-of-wallet?
• Additional storage space
• Parking garage or car port
• On-site laundry facility
• Housekeeping
• Lawncare
• Pet sitting
• Lock-out service
And tenants who use one or more of these other types of benefits automatically end up staying with you longer!
But be aware that the most important need you must meet is when there is a maintenance emergency or required repair. None of these other ‘nice-to-haves’ will matter at all, if you’re not first taking care of the critical needs like working appliances, heating/cooling, etc. We have to provide the basic necessities before we can reach these higher aspirations!
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