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Join us on this episode of weekend wisdom to learn about 3 easy ways to boost cash flow without having to do much. --- Transcript   Michael: Everybody, welcome to another episode of The Real Estate Investor. I'm Michael Albaum and today I'm joined by   Tom: Tom Schneider.   Michael: And in today's weekend wisdom, we're going to be talking about different ways to increase the rental amount you're able to command on your properties. So let's get into it.   All right, Tom. So what are some of the ways that you've seen heard experienced, done about adding additional rental value to properties? All right,   Tom: I'm pulling out a sword that has two edges on it. And that double edged sword is allowing pets dogs, I think one of the thing that's special about a single family home is it's you have a yard. So a way to increase the rent that you're collecting is to allow dogs and you know, charge for that have an extra or security deposit have an extra pet rent, a couple of other different ways of monetizing that amenity because a lot of times if you're renting, you're not able to do that. So that's a way that you can add your bottom line but as I said, the double edged sword. If you have new carpets, that may not be a great idea if you have just because anyone who is how to dog dogs do stuff that carpets that are that are bad. I have a dog Bodie that does bad things to carpet. So bad Bodie. Bad Bodie. Sorry, I just threw him under the bus. Sorry. Sorry, buddy.   Michael: So do you, in your opinion, should pet rent, actually, you can charge a pet rent to up your monthly rental amount. And then you talked about a security deposit, which is really only helpful. I mean, if you're keeping the deposit, so would you make a pet security deposit non refundable?   Tom: I would try to take it to the rent. So like if the tenant I think is going to be there for a long time. And I you know if they have a pet, and that makes them that much more happier and that much more likely to stay? Oftentimes, you know, carpets have a shelf life anyway. So like, depending on how old it is, I'm going to be replacing it anyways. So might as well capture that extra income with the pet rent rates, you know, give Bodies' friends a place to…    Michael: A place to do naughty stuff.   Tom: Yeah. What about yourself? What are your thoughts?   Michael: And yeah, so I think pet rent is a great way to go. Especially because some in rentals don't allow pets. So it can be oftentimes a no brainer, especially in the single family space. I used to be a big advocate of non refundable pet deposit. And that way, I'm just getting that chunk of change and I'm keeping it for the inevitable damage is going to be caused is that…   Tom: Hold on a second non refundable deposit, I heard you said that before? It's kind of like an oxymoron like isn't it a deposit like something you might be able to get back?   Michael: That's a really good point, a non refundable fee for the pet, I guess we would call it.   Tom: A fee!   Michael: Yeah, like a pet. Yeah, for cleaning fee an upfront fee, though. And I was chatting with a property manager of mine and she was like I'm not a big fan of those because the tenant is now disincentivized let's say the pet does some damage. I was like, well screw it. I'm not getting my deposit back. Anyhow, what's the difference versus a deposit you're kind of hanging over someone's head, you're incentivizing encouraging them to clean up after their pet and return the place to as it was when they received it. So I definitely backed off from from that mindset quite a bit.   Tom: Yeah, it's like it's almost when you pay that fee. It's like Alright, good news dog, you get to do whatever you want to do. I like that there is sort of like connection to it.   Michael: Absolutely. Absolutely. All right. So shifting gears here What are your thoughts on appliance rentals or furnishing rentals?   Tom: You know, I've purchased properties that came with appliances so like I was pretty agnostic to the way that it was structured and the ongoing lease I guess I could have been more aggressive and more strategic with my property managers oftentimes I’ll not have the appliance be mine and just have the new tenant set up their own I don't mind I mean it's it's I suppose it's extra opportunity to make some income but it's also extra overhead so that's it is my refrigerator in my XYZ I'm gonna be on the hook for going and doing all the ongoing maintenance versus if it's theirs, I mean it's a trade off but I understand the cost of the expenses better they understand them well then and understand the risk I'll do it but I don't so you know what the breakage rate so I mean that's my my opinion is is to simplify things. Have the tenant bring their their appliances.     Michael: Bring their own stuff.   Tom: Yeah.   Michael: Yeah, that makes sense. I'm like you I bought I bought and properties that had appliances or that had even furnished properties. And so then I was able to advertise those as furnished rentals and get a little bit more return. And it wasn't like I paid anything more for them on the purchase. I was like yeah, whatever happens happens. And similar with appliances like if it comes with a washer and dryer, great well now I can advertise that either as comes with washer and dryer, or if I have a use for that elsewhere. I can say you can lease the washer and dryer, you know for additional whatever 15 bucks 10 to 20 bucks a month in rent. So that's that's kind of how I've played that in the past.   Tom: Unrelated. But interesting. Have you ever looked into executive housing like month long rents?   Michael: Yeah, I have a lot of markets. It makes a lot of sense. Yeah. I think it's just tough in that it's it's often a really limited pool of, of tenants. Sure. And especially in like today's day and age where no one's there, there's a lot less travel. I think that that market probably got decimated first. Yeah,   Tom: I've got a friend, Mitch Davidson shout out who is into that game. He was telling me about it. It's such a good strategy.   Michael: Okay, so the last thing I want to talk about is storage. Have you ever played around with experimented with renting out storage space?   Tom: Little to none? When I say little, I mean, none. Little is an overstatement.   Michael: A little is exaggerating.   Tom: No I just use I mean, my my bread and butter is single family rentals. So I assume that works a lot better in commercial and larger multifamily. So I'll let you lead the way.   Michael: Yeah, so just in in, even in smaller multifamily. I have a five unit in which it has two garages, and we rent those out for 40 bucks a month, each and it like it's just the easiest money I'm able to make. And so if there's extra storage space, even on a property, like a storage shed or something, you know, think about renting that out to folks or asking folks if they want storage space and what they pay for it, because you can make a pretty minor investment, a pretty nominal investment into some storage sheds that have locks on them and then rent that out to folks.   Tom: Killer. I actually lied, I do have a little experience in in storage, at least parking out of college living in San Francisco at this unit that had two garages, I don't for whatever reason, at least did. And we were like checking on Craigslist, and it's like, Holy smokes, these garages rent for like 350 bucks. So we didn't tell our landlord we subletted one of the garages out and just had this income stream I just did it on my own just put it on Craigslist, found a guy he you know, whatever PayPal money send money over and so that is my little experience and it was fantastic review should rent garage space, if you can highly recommend it.   Michael: That's perfect. That's perfect. Yeah, and same thing goes you know, for single family if you have a covered garage or something and you can incentivize folks within a in a colder climate, that can be a great way to and especially if your tenants don't have a car, you know, whatever, you could utilize things that are existing in on the property to rent out to somebody else depending on how this setup works and all that kind of good stuff. But I think always have your eyes peeled for for extra ways to add income to the property and juicy returns.   Tom: Creative and gritty. If you haven't seen the mascot for the Philadelphia Flyers Mr. Gritty check it out. Bodie giving a shout out for Mr. gritty.   Michael: Mr. Gritty. I'll definitely check that out.   Tom: Yeah, that's that's the mindset you need.   Michael: Whenever I hear Philadelphia mascot, I think it was Green Man from It's Always Sunny in Philadelphia. So good. So good.   Pierre: Okay, completely ridiculous and funny side note, and probably a non sequitur but you have, pet rent, right?   Michael: Yeah.   Pierre: ‘Cause pets do unsavory things to carpets. What about child deposits? I've seen I have seen children do some pretty reckless things to homes.   Michael: Yeah, that's a really great point.   Tom: It depends on what country you're operating and there might be countries as well but I think in the United States they have rules against you know, limiting people so   Michael: People yeah, and all that stuff.   Pierre: Yeah, completely joking.   Tom: No, it's it's it's true.   Pierre: You see kids spreading paint everywhere and you know, peanut butter and all the stuff.     Michael: It's ridiculous. Awesome. Alright Tom ready to get out of here?   Tom: Let's do it.   Michael Well, thanks so much for listening everybody. That was our episode. Hope you enjoyed that we can wisdom. Please feel free to give us a rating and review wherever it is. You listen, your podcasts are super helpful for us. And as always, if you have a specific topic that you want to hear on an episode, leave us a comment and we'll get to it.   Tom: We read this stuff! Happy investing.   Michael: Yeah, we read that stuff!