Oh and I’m back with another of my 101 cashflow accelerators. It’s so great to see you. This is part of a series when managing property, each one of the different segments of the 101 cashflow accelerators is divided into separate segments. This one focuses on managing your property. I’ve been buying, holding, and selling property now for over 40 years. Love the business. And one of the things that we do is always teach you how to have effective property management, efficient property management, and profitable property management. And this one has raised rants annually. You know, one of the big mistakes that landlords make is that they don’t raise rents. They get very confident and comfortable in their relationship with their resident and they don’t want them to move. I don’t blame you for that. I’d want to feel the same way. However, what happens is inflation is a real thing.
Check with the Bureau of labor statistics and you’ll find that inflation over the last 20 years has been about 2.94% per year. So in other words, you start a year in January with a dollar. You end a year on December 31st with about 97 cents so you already know you’re going backward by 3% and doesn’t it make sense to raise your rents. Now in our standard rental agreement that I’ve talked to you about on other segments, one of the things that we’ve built in is an annual increase in rants built-in that it’s 10% now we tell our resident when we do our signing ceremony that I also covered in different segments. We tell them that it does say 10% however, we’re going to look at the different expenses that we’ve had on the property to determine what the amount will be. For the purposes of this training.
It’s to share with you that you should always raise your rent at least 3% just to be even with the beginning of the year, and to also take into consideration property, taxes, insurance, and repairs that you’ve had in the property. And when you use my paperwork, standard rental agreement, it already has a place built-in for you to notify your resident that the rent will go up in 12 months. I hope this has been valuable to you, like it, love it, share it, and subscribe to our channel and I look forward to seeing you soon at my millionaire. Jumpstart training. If you’d like to know more about managing properties the right way, the street smart way, go to streetsmartinvestor.com look at the tools and you’ll find my property management system volume eight call us (800) 578-8580. Have a great day.