How to save $1000 in a day

Are you a 'hands-on' or 'hands-off' property investor when it comes to managing your investment properties? If you had a multi-million dollar property portfolio, how involved would you be?  This 'blog', by Reno King Geoff Doidge may inspire you to look closely at how your own portfolio is managed - or should be managed.

Saving #1: Amount Saved : $100,   Time Taken : 20 sec

It started with the email...

"Hi Geoff,

The tenant David [not his real name] has returned his Entry Condition Report and let me know that the rangehood does not work.
He also said that the dryer door does not close.  Please let me know if I can have Northern Handyman Services [not their real name] attend to these.
                                                                   Property Manager"

I requested permission to enter.
 

I found David, the classic irishman, had taken out the dryer lint filter and replaced it back to front...so the door didn’t close.

Time to solve the problem 10 seconds, saving $100 including call-out fee.  I bet the tradie report would not read like above!

It would say “fix fault with dryer door $100.”

Saving #2: Amount Saved : $100,   Time taken time 10 sec

Go to the rangehood.

This is the ‘pull out’ type range hood to activate light and fan...not a switch type.

Pull out range hood to activate light and fan...fan goes on, light goes on - fixed - I am a genius!

Tradie report would say “fix fault with range hood $100 (and it’s Friday I’m off to the pub!”)

So far I have been there 1 minute and made/saved $180 per min.  That’s $10,800 per hour - not a bad hourly rate!

Saving #3:Amount Saved : $700,   Time taken 30 mins

Eventually went to breakfast. Just like every Friday since I left work.  Got a call on my mobile.

From one of my property managers ...  a cook-top at one of my properties was faulty and their trusty tradies had quoted on a repair.  

"Not viable to repair", they say - only 2 hot-plates are working and the stove needs to be replaced at a ‘tiny’ cost of $770!

This is a house that I have a DA (Development Approval) on, having applied strategies from Developing for Profit.  It will be demolished in 2 years' time to build 10 x 1 bedders (one bedroom apartments) so I am reluctant to spend $770 (or around $1 per day) so the tenants can use an additional 2 burners.  (We'll be going past this property On the Buses).

I rack my brain for what to do.

The agent won’t do that - they have passed the problem to me : they manage but don’t own . . . the tradie won’t do that - his business is to fix it : not to save money or to suggest low cost alternatives.

So it is up to me.

I am not going to spend $700+ on a stove that gets buried under a D9 (an excavator) in 2 years time!

I have to find the low cost solution.

Then it hits me : I remember seeing bedsits with a 2 burner cook-top that plugged into a power point.

I only need 2 hot-plates, so I wonder if they still make these things?

The answer is “Yes”!

I went to one of the big electrical chains and there it was - a portable 2 hot-plate cook-top in gleaming enamel.

Problem solved!

And now the price (it was on special) - just $69.

What a win, another $700 saved. 10  minutes later I handed the cook-top to the happy tenant.

Saving #4: Amount Saved : $100,   Time taken : 10 mins 

The 'cook-top' agent also said :

"The shower rose is broken. Do you want to send a repair man?"

I had said 'yes', but when I delivered the cooktop I asked to see the shower.

I don’t know why, but in the boot of my car was a shower rose and  5 minutes later it was installed with some plumbing tape I found (also in the boot).

Result? Happy tenant and very happy owner!

I fixed all these problems at a tiny cost. My tenants are happy and I saved myself $1000 and I still had a 3 hour breakfast while everyone was working.

Life is good...Property is fun!