Tuesday, October 16, 2012

How to price your room and board rent

One of the first questions people ask me is how much should they charge for their rooms.  Well that depends on a couple of things.  How big are the rooms?  How much do you want to make from each room?  Do you include meals?  Are they shared rooms?  You don't want to price yourself out of business either.  

There are plenty of room and board operators that offer shared rooms for $650 each person.  Yes that's right!  They are making over $1200 per room!  You might want to work up to that point though.  I usually tell the newbies to start out with $500 rent for a shared room with no meals included.  You can also charge the client $650 with meals included.  You don't have to include meals though.  It's good to give the client the option to increase your chances of getting tenants in your rooms.  

If you have more than one available room, you can make more money than you can imagine.  The key is to actually get clients in the rooms.  You won't make any money if you don't have tenants.  Some people in this business screw up all their opportunities to get clients in their house because they are set on one price.  You always want to give people an option.  Don't you like options?  We all do.  Put yourself in the clients shoes.  

If you've been in this business for a while but don't have any tenants, there's something you're doing wrong.  You might be too expensive.  High rent can keep your rooms empty in this business.  This is why you want to have different options for them to choose from.  You increase your chances of getting tenants in the rooms by providing options.  This is a business.  You have to make money to make it work (like any other business).  

As we speak there are literally thousands of potential clients for your room and board business.  They are in need of what you have. You just have to be where they can see you.  I once met a client that had family members with lots of money.  They were willing to pay me extra money to take care of their loved one.  His rent was around $700 a month.  This doesn't include the extra $500 per month his family paid me to care for the client.  I didn't have to do much.  He simply needed someone to talk to.  This was easy money.  Now I got this opportunity because I'm open to new ideas and willing to negotiate.  I've seen many people in this business that consistently shoot themselves in the foot because they're not willing to negotiate.

There is no one way to price your rooms for rent.  Each person has a different situation.  However, if your house is a one bedroom shack in the middle of the desert, you probably shouldn't charge $600 rent.  I'm exaggerating but you get the idea.  I've seen too many cases where this is close to the truth though.  

Anyone with rooms for rent can be in this business.  You can call it clean and sober, independent living, room and board, halfway house, etc.  They all serve the same purpose.  They are simply rooms with meals included.  There is only one site I know of that will list your room and board housing. The Sac Room and Board Agency is the only nationwide resource for this niche housing.  I highly recommend advertising your rooms on their site.  They charge a fee ($25 for a 1 year listing) but it's well worth it.  Clients in this niche go to their site to find room and board.  Listing on their site gives you nationwide exposure.  You could receive calls from clients from other states that need room and board in your city.  I actually advertise on multiple sites.  You can never do too much advertising.  The money I've paid for advertising is nothing compared to the money I make back.  This is called an investment.  

Monday, September 27, 2010

Your clients income

The main reason many people like this business is because the clients have steady income. Most of the clients (not all) are on SSI or disability. This is the steadiest incomes a person can have. You won't have to worry about them not having money each month.

Why rent your entire house out for $1200 a month? In this business you can put 2 people in a room and charge them $500 each. That's $1000 with just one room! Imagine if you had 3 available rooms. This is actually the main reason people like this business.

This doesn't mean turning people down who are not on SSI or disability. I once met a client that had millionaire family members. They paid me extra to take care of the client. Why put to many limits on the type of clients I bring in?

Most of the clients I bring in are either mentally or physically disabled. While this might scare some people off, I can only see opportunity. There are many people on SSI that are looking for this type of housing as we speak. You just need to be where they can find you. The Sac Room and Board Agency is the ONLY place on the internet that offers nationwide advertising for this business.

There are thousands of people on SSI right in your area that would be glad to give you the money for a place to call home. You don't have to worry about deposits, credit checks, or any of that stuff. Just whether or not they're on SSI.

If the client has a payee (someone controlling their money), that's the best scenario. Their payee will send you the rent on the first of each month. Those are my favorite type of clients. They are also good for enforcing the 30 day notice.

Once you have a potential client, you need to have them fill out a rental agreement. You can go month-to-month, week to week, bi weekly, etc. It up to you how you want to go about that. You have the client sign for the agreed amount. And get them moved in.

I have been in the business in my area for so long that I get calls from clients all the time looking for housing. I give them a quick interview (over the phone or in person) to find out what type of income they have and how they get it and when. I personally don't turn many people down who are looking for housing as long as they have the income.

There is only one site that I can find that will allow you to get immediate exposure in this business. You can advertise your room and board, board and care, or any other type of facility you have right on their site. The Sac Room and Board Agency is a referral site. You will be listed in your area.

You can advertise for as low as $9.99! I recommend advertising for at least 1 year. It costs a little more but it's worth it. Besides, they will only bill you once for the entire year. If you like the results, sign up again the next year.

I will fill you in on other sites that offer the same opportunity once I find them. I would like to use their business myself.

Where to find Room and Board advertising

I have searched all over the internet and a few other places to find places to advertise room and board. I only found one site that advertises. The Sac Room and Board Agency is creating a nationwide listing. This way clients can find you from anywhere in the US.

Many of the midwest states are lacking this type of housing. Room and board seem to be easier fo find the further west you go. However there are just as many people in the the midwest states that need this type of housing.

So I am here to get you all on the same page. You don't realize how much money you can make with room and board. Or you can make even more money running a board and care (licensed facility). Check your state licensing fees and laws to get started.

Once you have decided to run a rooming house, don't expect clients to come falling in your lap. You have to "get out there" and be seen. You can go to the Sac Room and Board Agency to get nationwide advertising. For around $10.00 you can be on a nationwide advertising site!

This site offers immediate exposure for your facility. You don't need a special license or degree. to have a room and board. Anyone can rent rooms out of their house if they want. All you need is available space.

Remember, you WILL have to pay for some sort of advertising with any business. I have met many people that start a room and board. Then 6 months later you find they still haven't had any clients. They spent too much time on everything but advertising.

Having a written is a good thing. Just don't get carried away with planning. This will keep you from doing the most important thing: advertising. You find yourself in a ready, aim, ready aim mode. You should be in ready, aim, fire mode. You must fire the gun to have a chance at hitting the target.

Don't expect things to turn around over night either. Just know that as long as you're putting in the work (advertising), you WILL get clients. That's just the way it works! You can't miss with this attitude.

So if you are serious about this business, take a look at the Sac Room and Board site. You can advertise on their site for 2 months, 6 months, or a year. Depending on how much you want to spend on advertising. What do you have to lose? I promise there is much more to gain in the long run.

Friday, August 14, 2009

Where to Get Room and Board Coaching......

Many people who are starting out in this business are reluctant to pay for a silly coaching service. To them this would be taking money away from some other senseless items they will buy. They see this as a waste of time.

Actually they are sadly mistaken. They are hurting themselves in the long run. You see....this is a high turnover business. You never know how long a client will stay at your place. You can do things to prolong their stay. Like developing a relationship with your clients.

If hire someone that knows how to talk to the clients, you can decrease the turnover. Once a client moves out there's no telling when you will get another one. The best facility owners are good at working out problems. They always get long term clients. This, ladies and gentlemen, is called stable income!

So with no clients you have no business! It's as simple as that! The idea is to get consistent income through your clients. This is a prime example of how to use other people's money.

That's where some sort of coaching service like mine (sneak that in there..lol) comes into play. During my 12 years working in the mental health field, I trained employees how to deal with the clients. I worked on "THE FLOOR".

My relationship with the clients has always been great. This is not an accident! I had years of practice.

You knowing how to understand your clients is your key to success in this business. You must remember this is a relationship business. If work on developing relationships with your clients you will make lots of money!

I only charge $100 per year for the coaching service. It pays for itself in the long run. I will show you why my clients have the lowest turnover rates. The people that I coach are not suffering from high turnover. Long term clients can pay off your mortgage.

Not understanding your clients is like saying "I don't need this money". I know a homeowner that kicked a client out because of one small misunderstanding. Karma would have it so that she couldn't get another client in her house for about a year.

I realize that not everyone needs this service. You WILL find out if you do need it sooner or later. Just remember that there is nowhere else to get room and board coaching service. This service does exist should you decide to use it. It will pay big dividends in the long run.

You can always go to the Sac Room and Board Agency to advertise your room and board! This is the only site that strictly advertises for room and board. This site gives you the best chance to find clients that are looking for your type of housing.

Tuesday, August 4, 2009

Marketing your room and board

There are several ways to market your room and board. Marketing is a must for any business. If nobody knows about your business, you won't make any money. This is the fastest way to failure.

You can put all your attention on things like: what your home looks like (which is important), what type of clients you want, or whatever. But you won't get any clients if you don't market.

Many business owners fall short due to marketing. They don't realize how important it is. They just sit back and wait for clients to magically come to them. Guess what? That's not gonna' happen! You have to get the word out.

You can send flyers to the local facilities letting them know about your services. This takes time and money however. Be sure to factor in gas and time when taking this route. You can also fax your flyers to the facilities. Do whatever you can think of to be seen.

You have to spend a little money for advertising. That's just the way it is. Either way you look at it. I personally think you increase your chances by marketing in multiple outlets. I market in every avenue I can think of.

I have only found one site that strictly advertises for room and board or care home type housing. The Sac Room and Board Agency is the #1 resource in the area. They offer you an opportunity to advertise on their site. This is by far the easiest way to get the word out. They are established and you can benefit by advertising on their site.

They network with the local facilities to find housing for clients with mental/physical illness. Unlike craigslist you won't receive a lot of calls from people looking for a different type of housing. The Sac Room and Board Agency narrows it down for you.

Most of the people looking for housing on craigslist are looking for something close to campus or someone looking for a trade-off. Like work for a room. This is not the type of call you want to take. They are a waste of your time.

Take advantage of every avenue when it comes to marketing. It will all pay off in the end. It's your job to make it happen or not. Either way you have control of the outcome. Whether it's fail or succeed.

Saturday, July 18, 2009

What to expect from your clients.

Many people who get into this business don't know what to expect from the clients. Some clients are in need of supervision. Some clients aren't. We are dealing with people and people are not perfect.

If you are expecting the business to go smoothly all the time, you will be disappointed. Don't set yourself up for failure. No business is smooth all the time.

You might have a client or two that will not follow the rules. That's just the way it is. Don't let this discourage you from taking on new clients. The fact still remains that most clients will follow the rules.

Some homeowners develop an interview process with too many requirements. The strict interview process actually keeps them from getting clients. These homeowners usually have had a client in the past that was difficult to deal with.

Just because you've had one bad apple, doesn't mean you should change the way you do things. I'm not telling you to never make changes. Just don't make so many that it keeps you from getting clients.

We must remember that we got into this business to get clients. Not turn them down.

I know homeowners who will interview 10 clients and turn down 9 of them. If you let one bad apple discourage you, you didn't know what to expect from the clients.

Many clients stay at any one place for about 3-6 months. Many of them will stay 1-2 years. It's tough to get a gage on how long a client will live at your place.

If you turn down clients because they say they plan on staying at your place only a few months, you won't get much business. Your space will continue to be empty. This is counterproductive on the homeowners part.

I know one homeowner who turns nobody down. He will take on parolees, mental health clients, homeless, or temporary clients of any kind. The result is that he always has clients. His houses are always full of clients. He hardly has room for any clients I try to refer to him. He travels a lot too. He makes so much money, he can afford to travel.

When I first met the guy, I didn't understand why he operated that way. I came to realize that he is running the business the way it was supposed to be run. He knows what to expect from the clients.

His experience in the field showed me a lot. Every homeowner that runs their business this way will always keep money in their pocket.

If you have been in the business for more than 1 year, and don't have clients, something needs to change. Most of the time it's our interview process. We usually become too strict to operate.

You must be careful when discussing the rules. We all know that there must be rules. But too many rules can result in high turnover for your room and board. Or worse, no clients at all.

If you would like more hands on training on what to expect from the clients, Contact the Sac Room and Board Agency.

You can always get clients from the Sac Room and Board Agency. This is the only agency in the area that you can advertise strictly rooms and board type housing. Craigslist is too broad. You will get too many calls from people looking for a different type of atmosphere.

The Sac Room and Board Agency is changing the way things are done in the field. You won't find another site like it. It's an excellent site to advertise your rooms for rent. Click on the "Available Rooms for Rent" link. You will see how people are advertising their space. The site increases your chances of getting clients.

Thursday, July 9, 2009

How to create a win win for your room and board

First of all when I say room and board I mean any kind of independent living facility of any kind. They are all in the same category if you ask me.

There are too many home owners who only create lose lose situations. They don't think like a business owner. They are still caught up in the employee mentality. This is a dangerous attitude to have in any business.

The people with the employee mentality are not the go-getters. They think that business will sort of come to them. Only the business owners mentality will get you over the hump. Business owners understand that they must take chances and go after what they want. They won't sit back and wait for something to happen. They make it happen.

I have talked to some home owners that complain about not having clients but won't advertise or do the little things it takes to succeed. These people are clearly not business minded. If you don't have clients, there IS something you can do about it. As a business owner you have the ability to change your approach. You also have control over how much money you make.

Someone with the employee mentality will start looking for ways to fail instead of the other way around. They are used to being told what to do. What time to show up to work. When to get paid. What to wear, what time to leave work, etc. It will take some time for them to adjust and learn to think like a business owner. But it CAN be done. Others have done it.

It is just a different kind of thinking. Once you change the way you think, you will have a different outcome.

I know lots of home owners who think they are business minded. After I talk to them for 5 minutes, I see they have no idea what running a business is all about. I have a list of things you will hear from a non business person:

"I'm not interested" (to every opportunity)
"I already work with another agency" (why not work with another agency?)
"I need clients" (even though they turn people down)
"I will call you back" (but don't)
"I don't want that kind of client"
"I don't have money" (when they do)

These are just a few things a non business person will say to ruin themselves. They turn down every opportunity that knocks at their door. These people should get a job where all they have to say is "No". They will never succeed in any business. We have too many business owners that are non business people.

They don't understand that you have to spend a little money and time to run a business. Studies show that the people who take chances with their money are better off than the people that save money. I'm not telling you to spend your entire life savings. Make educated investments. You will win some and you will lose some. You win big when you win though.

Don't sit back and wait for things to happen. Make things happen.

Once you understand what it takes to be successful, you are a business owner.

The best place to advertise your room and board is here. The Sac Room and Board Agency is the #1 agency in Sacramento. They offer you a chance to be a part of a growing network. You can have access to the network once you are singed up. This site is strictly for clients who are looking for what you have to offer.