I am back with another one of my 101 cashflow accelerators. And this is number 51. Always use the right rental agreement that will protect you. Well, I’ll tell you what, over the years I’ve definitely learned that paperwork matters. And if you’re serious about this business, you’ve got to understand that you are in a contract-related business, that you’re going to contract with sellers, you’ve got to contract with buyers, you’re going to contract with occupants of your property. Sometimes they’re renters, sometimes they’re buyers. And having the right paperwork is an absolutely critical step in the process. And by that I mean that you have to have paperwork that protects you, that negotiates for you, and that covers your assets. When things get a little wonky, as they sometimes do with crazy people, that might move into your property. So what happens is that we give you the tools to be able to do that.
Now, we created many years ago, something we call the standard rental agreement. I literally had a whole group of votes come meet with me, bring their rental agreement, and we sat down and hashed out an amazing rental agreement that started about 30 years ago, in fact, and over the years, every year I do a process of review. Now I have a level of clients that have been studying and take our system and what happens is all of them review the agreement every year for any changes or suggestions, and then we publish a new agreement every year. So updating your paperwork is also a critical piece. As laws change, as dynamics change, as humans change, we need to make sure that we have the right words and it matters a word, a phrase, a sentence, a paragraph. Those are solutions to problems that could present themselves at a later time. Now in the rental agreement, it can contain some additional things we call profit centers or additional income that is available to you in your business.
Now when I say additional income, this is over and above what you make, the difference between your mortgage payment and what you rent the property port. No, this is much more than that. We have about 25 different profit centers that are available to you in your business. That BS, that rent, extra person rent, additional rent, maintenance taken care of by your client. Under certain circumstances. There’s levels of things that can be covered in behaviors. And so the right rental agreement actually controls the behavior of the person that’s going to be occupying your property. So having the right documentation allows you to fall back on not being emotional, not getting upset, but actually going back to reflect the agreement was in the beginning. How important is that? The agreement in the beginning is critical so that you can always use that as a platform. In discussions with your client.
We’ve even already written letters when they don’t do what they’re supposed to do. We’ve already got a letter for that. Now that’s in my volume eight property management where we have all the letters or someone to actually be able to fall back on what was agreed to because it’s excerpted out of the agreement and put it right into the letter that you now send to the client. So check out our standard rental agreement. It’s located in volume to selling and holding, and also volume eight property management like this. Share this and subscribe to our YouTube channel. I’ll see you soon.