Do U Fear a Vacancy? (by Roy [AL]) Aug 29, 2016 6:36 AM
Do U Fear a Vacancy? (by David [MI]) Aug 29, 2016 6:42 AM
Do U Fear a Vacancy? (by Vee [OH]) Aug 29, 2016 6:58 AM
Do U Fear a Vacancy? (by Sisco [MO]) Aug 29, 2016 7:05 AM
Do U Fear a Vacancy? (by RathdrumGal [ID]) Aug 29, 2016 7:17 AM
Do U Fear a Vacancy? (by S i d [MO]) Aug 29, 2016 7:20 AM
Do U Fear a Vacancy? (by Jason [PA]) Aug 29, 2016 8:17 AM
Do U Fear a Vacancy? (by Roy [AL]) Aug 29, 2016 9:26 AM
Do U Fear a Vacancy? (by Roy [AL]) Aug 29, 2016 9:29 AM
Do U Fear a Vacancy? (by Coplin [CA]) Aug 29, 2016 9:31 AM
Do U Fear a Vacancy? (by Beth [WI]) Aug 29, 2016 9:38 AM
Do U Fear a Vacancy? (by Nicole [PA]) Aug 29, 2016 10:05 AM
Do U Fear a Vacancy? (by Mickie [OH]) Aug 29, 2016 10:14 AM
Do U Fear a Vacancy? (by Homer [TX]) Aug 29, 2016 11:22 AM
Do U Fear a Vacancy? (by CDM [CA]) Aug 29, 2016 12:01 PM
Do U Fear a Vacancy? (by RB [MI]) Aug 29, 2016 1:35 PM
Do U Fear a Vacancy? (by Vee [OH]) Aug 29, 2016 1:51 PM
Do U Fear a Vacancy? (by Chris [CT]) Aug 29, 2016 2:02 PM
Do U Fear a Vacancy? (by Gail K [GA]) Aug 29, 2016 2:10 PM
Do U Fear a Vacancy? (by Amy [MO]) Aug 29, 2016 2:17 PM
Do U Fear a Vacancy? (by Frank [NJ]) Aug 29, 2016 3:46 PM
Do U Fear a Vacancy? (by Tyler [NC]) Aug 29, 2016 4:50 PM
Do U Fear a Vacancy? (by Ray-N-Pa [PA]) Aug 29, 2016 5:53 PM
Do U Fear a Vacancy? (by Robert,Ontario,Can [ON]) Aug 29, 2016 6:03 PM
Do U Fear a Vacancy? (by mike [MO]) Aug 29, 2016 6:10 PM
Do U Fear a Vacancy? (by NE [PA]) Aug 29, 2016 6:20 PM
Do U Fear a Vacancy? (by Roy [AL]) Aug 29, 2016 6:37 PM
Do U Fear a Vacancy? (by Amy [MO]) Aug 29, 2016 7:45 PM
Do U Fear a Vacancy? (by Rocking Bear [FL]) Aug 30, 2016 2:01 AM
Do U Fear a Vacancy? (by Roy [AL]) Aug 30, 2016 5:02 AM
Do U Fear a Vacancy? (by Andrew, Canada [ON]) Aug 30, 2016 5:22 AM
Do U Fear a Vacancy? (by bet [MA]) Aug 30, 2016 6:27 PM
Do U Fear a Vacancy? (by Ray-N-Pa [PA]) Aug 30, 2016 7:27 PM
Do U Fear a Vacancy? (by Deanna [TX]) Aug 30, 2016 7:39 PM
Do U Fear a Vacancy? (by gevans [SC]) Aug 31, 2016 3:56 AM
Do U Fear a Vacancy? (by Roy [AL]) Aug 31, 2016 4:45 AM
Do U Fear a Vacancy? (by Nicole [PA]) Aug 31, 2016 5:51 AM
Do U Fear a Vacancy? (by Tara [TN]) Aug 31, 2016 11:18 AM
Do U Fear a Vacancy? (by DB [OR]) Aug 31, 2016 12:46 PM
Do U Fear a Vacancy? (by David Krulac [PA]) Aug 31, 2016 1:05 PM
Do U Fear a Vacancy? (by Daddy G [CA]) Aug 31, 2016 6:01 PM
Do U Fear a Vacancy? (by GingerLou [GA]) Sep 3, 2016 8:50 PM
Do U Fear a Vacancy? (by Roy [AL]) Posted on: Aug 29, 2016 6:36 AM Message:
Occasionally I talk to local LL's about their tenants and make comparisons to my tenants. One thing I have noticed is that many LL's tend to have a real fear of having a vacancy. This 'fear' or paranoia (for lack of a better word), keeps them from raising rents, allows the tenants to pay late without consequences, or not pay at all just because of some tenant misfortune.
Personally, I see a vacancy as an opportunity to get the house cleaned up and re-rented at full market rent. 3 weeks ago, I lost a 5 year tenant that was paying $475.00 (below market) and just yesterday I re-rented that house at $605.00. In the last 5 years, all of my rents have increased 20% and this was due to having vacancies and increasing the rent to market value.
Do you fear having a vacancy? Why?
--68.62.xxx.xxx |
Do U Fear a Vacancy? (by David [MI]) Posted on: Aug 29, 2016 6:42 AM Message:
Only during the winter, because it means taking long to get someone in and a lower rent. That is why I do not do month to month and my leases always end in the summer.
I don't have a problem evicting a tenant during the winter if they keep paying late or not at all because I always get 1.5 months deposit so I can use that for any missed rent. --12.47.xx.xxx |
Do U Fear a Vacancy? (by Vee [OH]) Posted on: Aug 29, 2016 6:58 AM Message:
A vacancy to me is a chance to add that feature I learned after this place was filled and then demand a higher rent, so even if I evict and a family member of the old tenant comes around they can see what is different and -then complain- the place is lousy (in their opinion because their cousin was thrown out) and isnt worth the old price - that is how I know the inside story without having to ask. --76.188.xxx.xxx |
Do U Fear a Vacancy? (by Sisco [MO]) Posted on: Aug 29, 2016 7:05 AM Message:
I don't fear vacancy.....but I do realize that vacancy often means that it is time to remove carpeting and replace with allure, paint, change faucets all of which burn cash.....Also, I seldom get just one vacancy at a time, it seems to be streaky - I have 0 vacant, then 3-4. --72.172.xxx.xx |
Do U Fear a Vacancy? (by RathdrumGal [ID]) Posted on: Aug 29, 2016 7:17 AM Message:
I do not fear a vacancy. We bought a run down 6 plex nearly 3 years ago. As units have turned over, we have painted, remodeled and updated 4 of the 6 units. The remaining 2 units have long term tenants. One tenant is elderly and will probably stay for the rest of his life in that unit, the other fellow may move soon. I am itching to get those last two units rehabbed as soon as possible. The remodeled units are EASY to turnover, show well, and give me a chance to raise rents to market. Our longest vacancy was three weeks in Jan of 2015 -- we still got great tenants. But, it all depends on your market. --98.145.xx.xxx |
Do U Fear a Vacancy? (by S i d [MO]) Posted on: Aug 29, 2016 7:20 AM Message:
Hey, Brother Roy!
I'm going to work at this question through the lens of my faith, so bear with me and I'll try not to 'preach' excessively.
I have heard that in the Bible, the God Almighty of the Universe says 365 times, "Do not be afraid." It comes in several variations: "Fear not", for example. This is always an imperative, loosely translated, "You SHALL NOT be afraid." In all circumstances, rentals, family, politics, salvation, etc. Fear of men is a detriment to progress. This isn't to say I lack a healthy level of concern or skepticism, but I this is to say I am not paralyzed from taking action, as are your fellow land lords.
Like you, I see a vacancy as a time to refresh the property and find a tenant who will pay me more.
I believe many land lords 'fear' vacancy because they have huge debts and little to no cash savings to cover vacancies or emergencies. Why would I be afraid when I can replace 5 roofs by writing a check or have my property sit vacant for a year?
This, then, is one more meaning of, "The borrower is slave to the lender." Broke land lords with little money and piles of debt get fearful because their future is based on the whims of unstable tenants, the FED's next interest rate hike, and whether or not they can wheedle a loan extension from their banker during an economic crisis when lending locks down. On the other side, land lords who have little or no debt and fully funded emergency funds do what you and I do: we press 'Reset' and look forward to a brighter future.
Hope that was what you were looking for. --173.19.xx.xxx |
Do U Fear a Vacancy? (by Jason [PA]) Posted on: Aug 29, 2016 8:17 AM Message:
Roy, those vacancies are better like you had mentioned but what happens when you're $605 a month tenant if they move out, will you be able to raise the rent to 735 and then when they move out will you be able to raise it to 865? Sometimes I wonder with some of your questions what you're really getting at because there are so many situations and circumstances that come up in the business and in life. --152.208.xx.xx |
Do U Fear a Vacancy? (by Roy [AL]) Posted on: Aug 29, 2016 9:26 AM Message:
Jason,
Can you rephrase your reply? I don't understand what you are asking me about?
There are limits on how much I can raise rents to. My last tenant (5 year one) moved out because they did not want to pay the rent increase I had given them. I found another tenant who would pay that increased amount.
--68.62.xxx.xxx |
Do U Fear a Vacancy? (by Roy [AL]) Posted on: Aug 29, 2016 9:29 AM Message:
Sisco,
I do not look forward to having multiple vacancies at one time. Yes, that can a little stressful especially when rents are your only income. --68.62.xxx.xxx |
Do U Fear a Vacancy? (by Coplin [CA]) Posted on: Aug 29, 2016 9:31 AM Message:
I find vacancies, beside being a cash flow sink, to be an irritant. I have to divert my attention from doing things I like to doing and managing fix up / re-rental activities. But it does provide an opportunity to bump the rent up a bit. --108.13.x.xx |
Do U Fear a Vacancy? (by Beth [WI]) Posted on: Aug 29, 2016 9:38 AM Message:
10 years ago I dreaded vacancies. At that time, a turnover meant turnover costs (a minimum of carpet cleaning and painting. As you all well know the possibility of it being much much more was a possibility). At that time, a vacancy typically meant 2 months empty if not 3, 4, or even 5 months empty. Plus the time and effort involved in showing.
Times are good now. A turnover will have some money involved in getting it ready, but the unit will only be empty for a day or a coupe of weeks at most. --66.87.xx.xxx |
Do U Fear a Vacancy? (by Nicole [PA]) Posted on: Aug 29, 2016 10:05 AM Message:
... $475.00 (below market) and just yesterday I re-rented that house at $605.00...
my question is after 5 years, how much did you spend to get the place ready? cleaning, painting, flooring, plumbing, etc?
your 3-week vacancy cost you $329 ... in other words, $27 of your $130 increase or $578 rather than the $605.
Subtract out your other costs to see what you've really gained. I seldom remove a good paying tenant over money. I don't fear vacancies but I hang onto tenants as long as possible. --72.70.xxx.xxx |
Do U Fear a Vacancy? (by Mickie [OH]) Posted on: Aug 29, 2016 10:14 AM Message:
I don't fear it. Like others I see it as and opportunity to update and raise rent depending on the market demand. It also lets me try new strategies I've learned here. As for having 2 or 3 move out's at once... it reminds me that when I'm at a point when I think I can leave my day job that I must be making enough at that point it won't affect what I live on and won't touch the emergency fund. It would only affect the funds I would be squirreling away for cash purchases. --70.194.xxx.xxx |
Do U Fear a Vacancy? (by Homer [TX]) Posted on: Aug 29, 2016 11:22 AM Message:
Like you Roy, I like a vacancy. While I do give rent increases yearly, it's not enough. I like the chance to get into a house every 3 years or so and go through it. I have had 6 vacancies so far this year with an average rent increase at $140. Also, I look forward to having something to do, antenna tv reruns get old after a while. Just got notice of another vacancy coming at the end of September. Can't wait! --75.141.xxx.xxx |
Do U Fear a Vacancy? (by CDM [CA]) Posted on: Aug 29, 2016 12:01 PM Message:
I find vacancies to be a hassle, because I have to stop just collecting checks and hustle around to get a new tenant, but nothing to be afraid of. I am in a very hot rental market and have a property that is unusual and desirable, so finding new tenants isn't difficult, just a lot of work.
I would definitely find it scary if I didn't have the cash reserves to carry the property through a vacancy. --66.167.xxx.xx |
Do U Fear a Vacancy? (by RB [MI]) Posted on: Aug 29, 2016 1:35 PM Message:
It's not the Vacancy I fear but the returned condition
at Turnover.
Some Tenants can be Destructive and they All think they should get
the Full Deposit back.
--24.180.xxx.x |
Do U Fear a Vacancy? (by Vee [OH]) Posted on: Aug 29, 2016 1:51 PM Message:
RB and Beth above, you need to get inside and ask for truck mounted carpet cleaning with a receipt incase they need to return for spots that shows after dried - this is outgoing tenant cost stuff like cleanout and cleanup. --76.188.xxx.xxx |
Do U Fear a Vacancy? (by Chris [CT]) Posted on: Aug 29, 2016 2:02 PM Message:
I think a lot of landlords fear vacancy because they have a large mortgage and no cash reserve. So an empty unit comes out of their pocket.
I don't fear a vacancy that would be silly in this business. --67.82.xxx.xx |
Do U Fear a Vacancy? (by Gail K [GA]) Posted on: Aug 29, 2016 2:10 PM Message:
I don't fear a vacancy (and all my houses have been purchased with cash so no mortgages) but I sometimes have to take a deep breath before I start advertising to remain calm regarding a certain percentage of really dumb questions I can expect from callers.
Gail --73.20.xxx.xxx |
Do U Fear a Vacancy? (by Amy [MO]) Posted on: Aug 29, 2016 2:17 PM Message:
I fear a vacancy in only one of our SFH'S. This home has a bullet lodged in an upstairs bedroom wall. 2 pistols were left abandoned in the property along with a drug scale, so who knows what that poor house has seen. Across the street is a seedy little corner store where 2 men were recently killed, gunned down. There are 4 bus stops one on each corner. The house next to ours is boarded up but people have been arrested for doing drugs and pooping on the stoop. There was a man passed out on the front porch for a couple days neighbors thought he was dead, etc.
So yeah, when you have vacancies for a month or two or more, and you have to decide if you'd rather rent to a section 8 family( which I have a hard time with) or someone who is/ will be a drug dealer in that area it's exhausting. We drive by with our shades on, doors locked. My poor husband has to constantly be on the lookout for people walking by in the area asking for money. Forget him being able to even mow the lawn. We have had the AC unit stolen 3 times out of that house during vacancies so you really have to be careful. Careful who you hire, careful who you show the home to.
Screening is so hard because you really have to lower your standards to find someone who will even dare live in this area.
But honestly, it isn't the vacancy I fear so much as it is me really thinking the risk we have to take with this property worth it at all?
They are have built a pd crime lab diagonally across the street. We joke it's to save gas.
They are building a community center and our city has begun demolishing it's abandoned buildings. Finally. So hoping things will turn around.
We have been playing the wait and see game. This house? A beautiful stone 1920's 4 bedroom home with the original woodwork intact. We have had to actually reduce rents to entice decent people to take chances living there. I'm probably going to get attacked by people on this site, thinking we have to just be stronger. I assure you, any other property, you can say that.
Google 27th and Prospect in KCMO. Or go to YouTube and type in 27th and Prospect.
And for you wondering why we bought there? We didn't know it's history. First investment.
Blame naivete.
Any other house, we clean it up, raise rents and move on. Welcome the chance for more income. Cant help it if they are going to leave anyway, so nothing to cry about. :)
--107.77.xx.xx |
Do U Fear a Vacancy? (by Frank [NJ]) Posted on: Aug 29, 2016 3:46 PM Message:
my answer to do I fear vacancy is "would it help?"
It does send a chill down our spine though....2 months vacant = 4K.
That's a lot of loss [not to mention utilities & taxes] to be made up by a 100.00 raise in rent. --173.70.xxx.xxx |
Do U Fear a Vacancy? (by Tyler [NC]) Posted on: Aug 29, 2016 4:50 PM Message:
Cycles do occur and after some 20+ years I distinctly remember 2 that creat consistent 15-20%+ vacancy rates at least for me locally....
During the 1st reality of hitting those high vacancy rates and finding/achieving effective means of at least hitting normal vacancy rates I dreaded a vacancy.
The last 4 years remind me of the mid-late nineties (again -at least locally). Put a for rent sign up and drive 1/2 a block away with 5 750+ qualified applicants fighting for the one empty -not to mention double digit annual rent inflation. --69.132.xxx.xx |
Do U Fear a Vacancy? (by Ray-N-Pa [PA]) Posted on: Aug 29, 2016 5:53 PM Message:
Love it when someone new in the field ask....."what happens if you get a vacancy?" The question isn't IF, it should be WHEN.
Where vacancies are a royal pain to deal with, they are also opportunities to increase cash flow and readjust the below market rents back to market level. Where I believe in annual rent increases, I also believe in making them less than inflation and rents become below market if the tenant sticks around for awhile. --72.23.xxx.xxx |
Do U Fear a Vacancy? (by Robert,Ontario,Can [ON]) Posted on: Aug 29, 2016 6:03 PM Message:
The last three months here the vacancy has really started to drop like a exponential curve downward. A lot of those single family houses which once upon a time were rentals are sold then become owner occupied as many handed out keys without running credit checks on all adult applicants. The economy is improving which means more people are working where one can be more selective who one rents to. --74.220.xxx.xxx |
Do U Fear a Vacancy? (by mike [MO]) Posted on: Aug 29, 2016 6:10 PM Message:
I don't fear them, but I don't look forward to them either. I typically have over 10 vacant at one time. When they are full (and paying) I make more money. When they are vacant I make less money. For a brief time in 2014, I had over 50 vacant. I did not fear it, but I sure didn't enjoy it
I raise rents while they are staying there. Tenants may not like it, but gradual increases every year.
Tyler's Back!!! --99.82.xxx.xxx |
Do U Fear a Vacancy? (by NE [PA]) Posted on: Aug 29, 2016 6:20 PM Message:
I dislike them because I really dislike screening people. I want to hang onto my remaining faith in humanity!
After Jeffrey spoke at our landlord association in June, I have taken a different approach to my vacancies. I am offering the rent range now. (Unless the place needs a total overhaul.)
For example, my current 2 bedroom needs a paint job, new light fixtures, and a new vanity. I advertised it at a rent range from $625-$705. It was $625 as-is, a little more if they wanted fresh paint, a little more if they wanted updated lights and a little more if they wanted a new vanity.
His rent range idea was that you want the minimum you'll take for the unit up to what you'd like to get for the unit. He also said he wants his money back in 6 months.
After I heard him say this at our meeting and let it sink
in a bit, I really realized how genius that thought
process REALLY IS! It's really genius when you think about it.
There are things the units need in an upgrade fashion. I don't want to do it for nothing! Let the incoming tenants pay me for it and if they don't want the upgrades and take it as is, then awesome. I didn't do any unnecessary work and they are happy with a cheap place.
So now I am looking at my vacancies differently and seeing what I'd like to upgrade, what it will cost me and what the monthly cost would be to get my $ back in 6 months.
My current studio could use carpet and a paint job. I'm not just doing it, they're paying me if they want the "upgrade".
Standard cleaning and maintenance of fixing broken things and smoke alarms still apply. The units are show able. I'm not going to offer an upgrade to fix a broken toilet, if you know what I mean.
If the places are all fixed up, then I'll offer different things. Maybe a stainless steel package, glass top stove, who knows. I will make if fit the
Units and the area.
Give it a shot.
--50.32.xxx.xx |
Do U Fear a Vacancy? (by Roy [AL]) Posted on: Aug 29, 2016 6:37 PM Message:
Nicole (PA)
I don't boot tenants out the door just so I can make adjustments in how much rent they should pay. This most recent vacancy cost me less than $500 to get it ready to re-rent to a new tenant. Mostly cleaning and 2 bedrooms had to be repainted. 2 pick-up truck loads of used auto parts left in the backyard had to be hauled to the landfill. This is typical for my junky tenants.
$130.00 rent increase x 12 months =$1,560.00. I would never have seen that money with the 5 year tenant that vacated only because I increased their rent by $50.00.
Homer - You and I would make a good team.
Amy (MO) - I am an expert at repairing bullet holes. Let me know if you need help with the one you have. Single bullet holes are easy,..shotgun blasts at close range can be challenging. LOL. --68.62.xxx.xxx |
Do U Fear a Vacancy? (by Amy [MO]) Posted on: Aug 29, 2016 7:45 PM Message:
Roy, glad you can relate...I'm waiting for another hole so it can look symmetrical, lol. Besides the tenants LOVE to have a dramatic conversation piece. --107.77.xx.xx |
Do U Fear a Vacancy? (by Rocking Bear [FL]) Posted on: Aug 30, 2016 2:01 AM Message:
No but I fear not screening as hard as I should, on a side note, why not scrap the auto parts instead of garbage dumping them, lots of cash in spare parts. --71.1.xx.xx |
Do U Fear a Vacancy? (by Roy [AL]) Posted on: Aug 30, 2016 5:02 AM Message:
Rocking Bear,
One pick-up truck load was worn-out or damaged auto tires. My county landfill would not take them. I had to pay a new tire dealer to take them. Most of the other metal auto parts (a/c compressor, alternator, spark plugs, etc.) had rust on them from laying outside in the dirt too long.
--68.62.xxx.xxx |
Do U Fear a Vacancy? (by Andrew, Canada [ON]) Posted on: Aug 30, 2016 5:22 AM Message:
I no longer fear vacancies. But I dislike them.
Turnover between tenants usually means at least several days of very hard work, repairing, cleaning, painting, showing the unit, screening, lease signing, property inspection walk thru with tenant.
In cases of long term tenants it can mean a huge amount of work.
Recently I renovated 2 apts back to back. In total it took 2 months, while still working full time. I lost 15 pounds, including muscle and strength. I had zero time for anything but work.........non stop.
Yes the rents went up considerably and yes this improved property value, but how much does one person need? As we get older, time can be a more value commodity than money. --70.31.xx.xxx |
Do U Fear a Vacancy? (by bet [MA]) Posted on: Aug 30, 2016 6:27 PM Message:
This summer I was basically kicking everyone out so I could raise the rents. Fear a vacancies? No I was wishing they would leave. We are collecting 12k annually (40% more) due to turnover and increased rents. --74.104.xxx.xx |
Do U Fear a Vacancy? (by Ray-N-Pa [PA]) Posted on: Aug 30, 2016 7:27 PM Message:
Fear it No.......like it NOPE
Hmmmm, which would I rather have - passive income for doing nearly nothing but being responsible for so much, or not having any income and being on the hook for getting a unit into move in condition. --72.23.xxx.xxx |
Do U Fear a Vacancy? (by Deanna [TX]) Posted on: Aug 30, 2016 7:39 PM Message:
We live in a very isolated place, so there's not a lot of new blood coming in, like with a college town. Anyone who manages their money can buy a house easily. And our local economy is poor due to oil and gas not being in the stratosphere, so there's not a lot bringing new people into the area. I always get nervous, because I always worry in the back of my head, "What if there are no good people left?"
I've got good houses, and I'm confident in them. But I don't have a healthy tenant pool-- the responsible ones end up being homeowners sooner or later. But it's where I am, so it's where I grow. --96.46.xxx.xx |
Do U Fear a Vacancy? (by gevans [SC]) Posted on: Aug 31, 2016 3:56 AM Message:
No fear, but would rather have long term tenants.
Long term: passive income.
Lots of turnover means lots of work/money.
But...I try to use every turnover to my advantage. I try to catch tenants 30-60 days BEFORE moveout and schedule a smooth transition to the next tenant.
I offer pro-rated rent for the final month plus a finders fee of $100 if the exiting tenant will help me get that next paying customer.
It's great to be able to inconvenience the current tenant with painting and minor repairs while they are still paying the rent...and they are smiling because they know it will put money in THEIR pocket.
It's great when your current tenant willingly shows the place to the next customer...and gushes about what a great LL they have...because it puts money in THEIR pocket.
It's great when I get a 10-20% rent increase with the new tenant, sometimes without a SINGLE DAY of lost rent. --69.80.xx.xxx |
Do U Fear a Vacancy? (by Roy [AL]) Posted on: Aug 31, 2016 4:45 AM Message:
Thanks Gevans,...You gave what I consider the perfect answer to this question. How do you get 30-60 advance notice of a potential move-out? I get one week if I get anything. Most of the time, I learn of move-out when I am posting the P/Q notice. --68.62.xxx.xxx |
Do U Fear a Vacancy? (by Nicole [PA]) Posted on: Aug 31, 2016 5:51 AM Message:
Roy, I don't look at it as $1560 extra a year. when you subtract out your vacancy plus turn over costs, you are actually getting an extra $732 a year - not $130 a month, $69 a month.
you raised the rent 10.5% and that's a huge amount to folks that don't have much money. If you had been able to compromise on perhaps $15 or $20, your long term tenant may have stayed ... maybe not.
I look at a current tenant as a "known commodity" ... both their good and bad qualities. If they moved solely due to money, I would have done everything possible to keep them. --72.70.xxx.xxx |
Do U Fear a Vacancy? (by Tara [TN]) Posted on: Aug 31, 2016 11:18 AM Message:
No, I do not fear vacancis at all. Nashville real estate is h-o-t so vacancies give me an opportunity to raise the rent much higher than I would on an existing tenant. I agree with Chris (CT): Seems silly to fear a vacancy in this business. My suggestion to avoid fear is to buy props low, rent high, and screen tenants very well. --2600:387:2:813:... |
Do U Fear a Vacancy? (by DB [OR]) Posted on: Aug 31, 2016 12:46 PM Message:
As owners our job is to stay in control!
This is something that when you're in control whether you have a vacancy or whether you don't can be in part, the tenants you pick? Or your qualification process, or the verification process?
Mr. landlord years ago stated our job is to stay in control.
Just as a couple of other landlords have said I view a vacancy as an opportunity. Perhaps some areas do not have the higher rent everywhere around them and then again I'm sure that many landlords to have the burden of debt service.
You do have to pick your piece of pie and realize that when you select that pie just like you select a tenant, you need to know who that tenant is, where they been, what they've done, who they have hurt, and they have helped?
I will leave a property vacant at any cost to avoid litigation or potential for tenant lawsuits.
I do not fear a vacancy, I have more fear for other landlords who have put themselves in a bad position by selecting the wrong tenants.
I have been in the business for 41 years. And in Oregon we have a greatly increasing market and high demand for good quality properties in fantastic and nice locations.
Take a look at your property and immediately upon notification from your tenant place and run a respectable add and include pictures and allow other potential occupants to see this property prior to it being vacated.
I do not put the address in the ad, I want to preserve the occupied tenant's rights, I do not show the unit while he can it is in place because there is just too much liability.
Many times you can rent a property and believe me people do look for clean livable units and they want homes in areas that look good with pictures and pictures to sell..
I once rented a home that was immediately next door to another one that had just re-rented two weeks before. In that case I utilized pictures of the neighborhood and the property condition and as well brought out all of the positives in the properties. Fortunately for me the demand was high and the rental increases were very high $200 per month on each.
I have renters with whom I have had as occupants, these occupants are folks that I bought the homes from as long as 18 years ago.
Always look at a vacancy or anything else as an opportunity!
This is crucial because you are in business, and it's your job to make the most of your business and market your business in a manner such as any giant retailer.
I place my ads and I get replies and in fact I have a house that's coming up that I'm going to be selling and I already have approximately 30 private people who are willing to pay cash for the property. Two weeks before the property becomes vacant.
I am not in the habit of selling simply because I do not like to pay taxes. And in this case I will have a huge taxable loss due to government intervention and forced placed judgments by the government..
Never fear a vacancy, instead ask yourself how can this vacancy help me?
Investing now for 41 years and honestly helping other people help themselves get what they need while giving others what they want is what I enjoy doing.
Join your local real estate investor group, and hopefully you can get some comfort whiz all of the experience that has been shared by many other people as well as myself and, even before your home becomes vacant have 7 to 10 people who potentially know that the property is going to be vacant on or about a certain date and they can themselves then plan to see the property.
FYI this is a very important point, after my occupants moved out I do not even put my phone number and paper, I use the ad with the pictures, and I tell them in that add that if they are serious about the property they should go to the property and get my cell phone number from the sign in the window.
If my cell phone rings, then I know that I've got someone who has been to the property, and they're not just a tire kicker. Honestly instead of getting 30 calls for more a day my calls dropped to about seven or eight, but I am more than glad to answer all of their questions while in a masterful way asking them receptive easy to answer questions about themselves how they live now where they lived before and the number of years of credible and verifiable income, credit, and rental references that they've had or even questioning past ownerships as an owner.
Keep your mind open and do not mind or fear your vacancy!
Dan --76.105.xxx.xx |
Do U Fear a Vacancy? (by David Krulac [PA]) Posted on: Aug 31, 2016 1:05 PM Message:
Don't fear the vacancy.
Good seeing you again, Jeffrey, this weekend in SF Bay.
We've had some long term tenant.
32 year tenant, moved in in 1984, good selection on my part?
30 year tenant, told me that the only way they're leaving is horizontal.
21 year tenant, I had to find them a bigger house with a garage in order to get them to move, or they would still be at original place.
22 year tenant, they asked if it was ok but they replaced all the wall to wall carpet, (1 month before lease expiration) I said I didn't mind.
18 year tenant moved in with one year lease in the last century, continues to renew lease at new rent.
16 year tenant wanted to put in a $13,000 sports court, at their costs, fine with me.
12 year tenant has 6 kids, had hard time finding a place that would accept the large family, I did.
50% of my properties are rented to the FIRST tenant at that property, so haven't had a tenant turnover yet at any of those properties! --71.173.xxx.x |
Do U Fear a Vacancy? (by Daddy G [CA]) Posted on: Aug 31, 2016 6:01 PM Message:
First, I fear nothing.
Second, I have found through the years that if you have a good tenant, mildly inconvenience them with a small upgrade, a ceiling fan or some new tall baseboard for example. They will appreciate it. When they move, you will be plenty busy doing the usual routine of rehabing a place to WOW your next resident.
Start tomorrow. --70.181.xxx.xxx |
Do U Fear a Vacancy? (by GingerLou [GA]) Posted on: Sep 3, 2016 8:50 PM Message:
When I was a newbie in the rental property business, I used to get physically ill every time someone let me know they were moving out. That was many years and tenants ago. I do not enjoy vacancies. Income is interrupted, expenses are incurred getting the property back up to snuff. Recently I lost one of my best tenants who were relocating out of state. I was very sad to see them go. I had just gone up from $995 on rent to $1025, which had nothing to do with their moving, btw. They did such a jam up job of cleaning, even touched up the paint, that we had to do very little in terms of fixing up the property for re-renting. We had started doing some of the items on my fix-up list, but got stopped short once the For Rent sign was placed at the subdivision entrance. Within an hour we had a lively applicant, which I approved by the following day, signed the Lease the next day, and guess what? I increased the rent to $1150! I have found the best time to have significant rental increases is IN-BETWEEN tenants. I think I have erred over the years by not having small annual increases, tho. So I have started doing that and making larger increases when I'm dealing with a brand new tenant. I agree that it also gives LL a chance to make improvements to properties when the property is vacant. Thankfully, I have learned over the many years of LLing so that I don't panic any longer when a tenant tells me they are vacating. I have another house that is vacating the end of this month. I am getting $875 rent currently but will be putting it back on the market for $950 with some upgrades. If you purchased rentals in a good area, make them nice and attractive and keep your rents just below market, then it shouldn't be a problem to find new qualified tenants when you have a vacancy. So ... No need for fear. As someone previously commented, it doesn't do any good ... And I'll add that it, on the contrary, does really bad things, not only to the LL in terms of emotional health but also in attracting the desired outcome for your property. Thoughts are things. Thoughts are POWERFUL things, --99.110.xxx.xx |
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