“Why are so free ah? I see you only yum char everyday.” Some people have the notion if you are VERY busy then you’re making lots of money. Probably stems from the education we got from schools, telling us if we study AND work VERY VERY hard; we will be happy and successful. But wouldn’t it be nice to know that even though you are not working; money is still coming in exactly the same time every month?

Sure, many have rentals coming in every month too but a lot of times you still need to manage your investment property. Whether it’s a water leak, furniture or electrical breaking down or the ultimate stuck toilet bowl… and the tenant just pooped right before it…

Is there a better way? Yes! By creating your own ATM (Automatic Transfer Machine). Every month your tenants will transfer money to your account, then you can take it out and enjoy through the ATMs(real ones). Don’t believe there is such a tenant exist? I have a tenant who has been with me 5 years, and every month she would bank in the rental on the 30^th without failed. And she is not the only one. Many more in my portfolio. But you will need to be smart and the know-how. I guess have to give you some ideas on how to do it ah, otherwise there wont be much of a blog.

“SUCCESS IS NOT AN ACT BUT A HABIT”

1. Invest in Cashflow Positive Properties

Cashflow positive means you still have money to yum char once the bank and management corporation take their share off the rental. How to find them in this market? The easiest way is to come out with a larger down payment.

The Hard Way is to look for under value properties then rent it out to good tenants.

2. Only keep good paymasters tenants for your Properties

Nothing makes my day than to see my tenant sending me a WhassApp of Bank-In slip of that’s month rental. What a Bliss!

Strong tenants will pay their rent on time. Don’t compromised on the upfront deposits and the due date, especially for the first few months. Get rid of Bad Tenants! Please do not fall into the trap and keep on hoping they will pay on time one month after the next.

While you can also do your part by being a good landlord, attending to their problems quickly. Give them greeting messages during the festive seasons, send presents to their birthdays (this one only if it’s a girl that you fancy)

3. Get a property with Potential with Rental Appreciation

You can charge a premium for prime located properties, while it also makes you easier to look for quality tenants since it’s a hot location, means many tenants would want to rent it.

Over time you may increase the rent too, but of course do it smartly by putting it in black and white in the TA (Tenancy Agreement), usually by a certain percentage. Or do it like what do the locals kopitiams does it: Increase when cost increase, real or otherwise (When the prices of sugar increases by 10cents PER KILO, the kopi in local kopitiam also increase by 10 cents or more, hmm…)

4. Hold on to your HOT property

Selling off your HOT property may gave you a wad cash to buy that red ferrari everyone seems to be driving these days (I said buy I didn’t say keep) but it wont help you in your Ultimate Goal in creating ATM assets.

The longer you hold it the more time you can make your ATM work for you. Over the time you can increase rent, and also get better tenants while at the same time your mortgage is being reduced. As a bonus your property appreciates too.

5. Invest in Commercial Properties

Commercial properties have tenants that are doing business at your property so it makes sense for them to pay you on time. They are more worried about not being able to rent from you, then vice versa. Oh, they will take good care of the property too since their livelihood depends on it.

One word of caution though, do not keep on increasing your rental until your good tenants runs off and you lose your ATM forever!

Property Kid
No Kidding Around, Learn and Invest