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Landlording on AutoPilot, 2nd Edition by Mike Butler

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CHAPTER 12How to Consistently Get Paid Over 100% of Your Rents Every Month

This is not a typo. It's a true statement and you can get these results too. Before starting, let's clear up the definition here so we're both on the same page.

First of all, what exactly is rent? When traveling and teaching to groups, I ask, “We need an honest landlord with more than 15 units.” After we identify our victim for education (the honest landlord with at least 15 units), this “led to slaughter in front of their peers” landlord is asked…

“Of all the rent owed you over a 12-month period, how much do you really get?”

Amazingly, the majority of folks put on this hot seat answer honestly. By far, the number one answer is 85%. Asked if they're guesstimating or do they really know, they embarrassingly admit it's only a guesstimate. Keep in mind that this question deals only with rent owed over a 12-month period. It includes tenants who slow pay, don't pay, get evicted, and so forth. It does NOT include lost rent on vacant units. If you know how to get rent on vacant units, I'll be the first to sign up for your class.

Therefore, if you have 10 units renting for $800 a month (all occupied = $8,000 month), over 12 months you should get $96,000. Based on the question asked here, most investors believe they're getting 85%. This means you're getting only $81,600 of the $96,000 owed to you. $14,400 in missing income is not good for the home team. Almost a month and a half of YOUR rents… Poof!…gone! Adios! ...

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