I recently took on what might be the least sexy but most net-income boosting topic I’ve ever written about.
Preventive/proactive maintenance (PM) is ho-hum… no one gets excited about it.
That’s probably because there’s nothing to brag… even if your program is the best in the world.
But, never-the-less, this topic is critically important because…
PM helps you keep your money in the bank!
This is Part 1 of a 2 part series on preventive maintenance. Let’s dive in…
What is a PM Investor?
The goal of a savvy “PM investor” is to spend money to save larger amounts of money in the future.
It really is an investment.
It’s like you need to spend extra to eat healthy. Doing so helps you prevent costly diseases and poor quality of life… which is super expensive and time consuming to your personally and family members too.
At best, the most-impressive results are invisible. You’ll completely miss the results unless you choose to measure them.
So be sure to measure the results.
1 – Profit Flushing Preventers
I’ve noticed a rise in “flushable” personal care products. These things are terrible for drain pipes. T+hey nearly always cause clogs.
I bet they were invented by the plumber’s union…
If you’re a traditional landlords, you should send out notices to all tenants and add a lease clause forbidding flushable products from being flushed.
If you’re a short-term or extended-stay operator, then training your guest what not to flush is vital. Educating them and helping them find a convenient alternative is the work that needed to avoid clogs that take up your time and money.
As a good PM Investor, consider doing the following to keep flushable products from creating clogs at your short-term rental.
(a) Place a sign in all bathrooms and update your house rules to instruct guests not to flush “flushable” products. Here’s an example of the sign we are adding to our corporate rentals. I like it because it’s phrased in positive voice. https://amzn.to/2Mpc6lu
(b) Put a trash can, with a lid, next to every toilet. People want to flush things that smell and so they don’t have to see it anymore. Trash cans with lids accomplish both goals in a non flushable way.
2 – Internet Presence Amplifier
Create a YELP account for your business and treat it like the asset it is.
Yelp is a website that allows customers to review various businesses.
It’s the go-to place that helps people select which restaurant to visit, but it’s useful for housing entrepreneurs as well.
If you invest in growing this asset; you’ll see it pay off big-time in a few ways.
If you’re a traditional landlords, then do this…
YELP helps you create an online presence and credible reputation.
Why is this important? Because every real business should have a some type of web presence. It’s 2020!
The pay off comes in the form of:
(a) faster lease up as you edging out other landlords who are not paying attention to their online reputation.
(b) higher rents as you tenants can see why your rates are justified.
(c) momentum that you can parlay into for profitable forms of asset management such as short-term rentals and corporate housing.
I underestimated the importance of collecting YELP reviews. Even if you don’t think it’s important, you should realize it’s an online asset.
Whenever you get a compliment, ask for a YELP review. Whenever you do a favor for a tenant, ask for a YELP review.
Collecting great reviews before you need them is a wise Proactive Management investment.
If you’re a short term rental provider, then do this…
then you really need a YELP account.
You don’t want to be 100% reliant on online travel agencies such as Airbnb and Vrbo to keep your rental filled. They can cut you off anytime they think you might have violated their policies.
It’s far better to rely on them as a robust back up strategy for your business.
You want to build on your own property. However, people are skeptical of glowing testimonials that you post on your own site. It’s much more credible to direct people to Yelp so they can gauge their hospitality skills and the quality of staying at your furnished rental.