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00:15 The cons of top dollar rent

Good day! Damien here, from Integrity Property Education again. And today, my next video in the “What You Were Taught Wrong About Investing” series.

The cons of top dollar rent

Now, “Top Dollar Rent” is today’s theme. A lot of real estate investors are out there. And they’re driving their rent right up! They wanted to get the premium. They wanted to get that extra 10, 20 bucks. And they think that by doing that, they’re going to make their portfolio better. But actually, they’re not. And here’s why, your tenants are on the all the time, looking for other rentals. They’re looking for other places to rent. And they’re constantly looking for a better deal. Now, if you keep pushing the rent up, what going to happen is your tenants are going to leave. And if your tenant leaves, you’re going to get charged a week’s rent for your rental manager to find another one. And then you’re going to have vacancy, usually at least a week vacancy. Now, most of the property investment is now renting in the 4 to 5 hundred bucks. So you’re going to lose a thousand bucks, just by trying to get 20 bucks, a week extra rent. Now 20 bucks a week extra rent is only a thousand and 40 dollars a year. So as soon as you go past a week’s vacancy, if you lose your current tenant, then, you’re behind anyway.

And here’s the other thing, if your property is vacant, who is paying the mortgage? Not the tenant anymore, YOU! So you want to get a tenant in there as quickly as possible. If you’re losing 4 or 5 hundred bucks a week, you only need a couple of (bucks) a couple of weeks of vacancy before you’ve lost a thousand bucks. So, drop your rent 10 to 20 dollars below the market value. If you’ve got a tenant, no one leave. If your property is vacant, and there’s only one person looking to rent, they’re moving into your place, not everyone else’s. Be smart. Be wise. And you’ll end up in front in the cash flow.

That’s if for me, this week. If you learn something here about, please comment below. Please like it. Please share it with your friends. Let’s get this information out there. Let’s educate people about wealth creation, because you don’t get taught this in school, do you? Alright, that’s it for me. I’ll see you next week.

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