Often we come across properties that have expenses that can be trimmed down. That is by removing the expenses or changing providers, a duplex/property owner can realize hundreds of dollars more net income per month.
For example, a fourplex in north Austin had the garbage service paid for by the owner. The owner was paying for garbage service for 4 units and therefore 4 trash can receptacles each month. Each trash can cost about $22 month x 4 = $88 month. That doesn’t include taxes and related city fees. We cancelled that 3rd party private service and switched to the city of Austin garbage. As each lease ended, we started new lease terms of the tenant paying for their own garbage service. Within a year or so, the owner quite paying for garbage service 100% and now the tenants pay for their garbage service.
Another area of reducing expenses is water service. Some fourplexes and even duplexes have a single water meter. While this help cut expenses at construction time due to less plumbing materials and less labor to construct, it creates a long term problem: Does the owner/landlord just keep paying the water bill or how to bill the tenants back? Some owners have been simply paying for the water bill for years.
In the Austin area, tenants expect to pay for their own utilities. Paying for water really is an unnecessary expense for the owners. I recommend creating a water chargeback agreement in the lease. That is either prorate the water bill each month based on number of occupants or similar. Or figure a flat fee to charge with a variable contingency. Note that prorating the bill each month can create some overhead and be a hassle. A flat fee is easier to administer but can have more discrepancy on water use in relation to charge. By switching owner paid water to tenant paid water, a landlord can save $80 to $175+ per month.
There are even more areas to reduce expense: let’s discuss lawn care, repair deductibles, home warranty services, to name a few and other options next.
Thanks for reading.
Hong Lee
The DuplexDianne.com team
Advertisements
Excellent pieces. Keep writing such kind of information on your site.
Im really impressed by your site.
Hi there, You have done an excellent job. I’ll certainly digg it and personally suggest to my mates. I’m sure they will
be benefited from this site.
Hey there I am so excited I found your blog, I really found
you by accident, while I was browsing on Digg for something else, Regardless I am here now and would just like to say kudos for a marvelous post and a all round exciting blog (I also love
the theme/design), I don’t have time to read through it all at the moment but I have saved it and also added in your RSS feeds, so when I have time I will be back to read more, Please do keep up the awesome job.
Just want to say your article is as astounding.
The clarity for your put up is simply cool and i can
think you’re an expert on this subject. Well together with your permission allow me to grab your RSS feed to keep up to date with coming near near post. Thanks a million and please continue the enjoyable work.
Its like you read my mind! You seem to know a lot about this,
like you wrote the book in it or something. I think that you can do with a few pics to drive
the message home a little bit, but other than that, this is wonderful
blog. A fantastic read. I will definitely be back.
What’s Happening i’m new to this, I stumbled upon this I’ve found It absolutely helpful and it has helped me out loads. I hope to give a contribution & help different users like its aided me. Great job.