In our last post about increasing cash flow, we discussed sub-niches and how Nick Sidoti used this tactic to rent his single-family rentals for up to 3 times market rates. Since then, I’ve started thinking about what I’d do if I found myself exploited by a monopoly.
Going with the pizza vendor analogy, we previously concluded people paid 50% more for a slice than a whole pizza only because they didn’t coordinate with each other. But what would happen if someone showed a little leadership and asked others if they wanted to split a large pizza?
For no investment at all, landlords can reduce expenses for others and themselves.
Ah, my insight is pretty obvious. We pay premiums because we don’t cooperate with neighbors and we win discounts when we do. Let’s add that adage to our list of power principles.
I’ve been sharing with subscribers that I’ve used this principle to fight against the rising cost of internet services in my area. (To get the details, you’ll need to become a subscriber.) How far can we extend this concept of undoing sub-niches to reduce expenses?
Landlords, especially those of multifamily complexes, are a common denominator that can organize tenants. Shouldn’t Leading Landlords look to create savings for tenants and neighbors, then pursue the opportunities that benefits everyone (primarily the landlord)?
I’m going to play this idea more over the next few weeks. Please share your ideas as well.