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Honored Advisor
Posts: 8,874
Registered: ‎07-18-2011
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Re: Places To Shave Expenses

Insurance ---- in process.  We will change companies for the first time in 40 years.  We got a bid from a Commercial Insurance Company instead of the old farmer member insurance co.'s and were shocked at the difference...... but as you say you have to be wise about what you insure and how much...... maybe share some of the liability.

 

Rent  -- Cash leases are inherently problematic..... they create inflexibility...  They have to be sent packing occasionally if they won't adjust when you just adjusted for them at high prices a few years ago...... We asked for a reduction on two that were well above normal cash rent in the area.  We are adjusting the important one and got kicked off in two hours on the other....Probably a lease that we never should have taken on and only profited when yields peak...the weather risk was all ours.

 

Real estate taxes...... Do you provide housing for employees.... our real estate taxes are getting high.  A small house we have in town is approaching $4k per year...... That's around $400 per month taxes and ins. when a two room appartment can be rented for $675.-700

... can you afford ownership?

 

 

Timely subject Jim.