Long Term Tenants (by Roy [AL]) Jan 10, 2018 5:30 AM|
Long Term Tenants (by plenty [MO]) Jan 10, 2018 5:39 AM
Long Term Tenants (by Vee [OH]) Jan 10, 2018 5:47 AM
Long Term Tenants (by David [MI]) Jan 10, 2018 5:50 AM
Long Term Tenants (by WMH [NC]) Jan 10, 2018 5:54 AM
Long Term Tenants (by razorback_tim [AR]) Jan 10, 2018 6:10 AM
Long Term Tenants (by Homer [TX]) Jan 10, 2018 6:15 AM
Long Term Tenants (by GKARL [PA]) Jan 10, 2018 6:19 AM
Long Term Tenants (by Roy [AL]) Jan 10, 2018 6:36 AM
Long Term Tenants (by RathdrumGal [ID]) Jan 10, 2018 7:05 AM
Long Term Tenants (by Sisco [MO]) Jan 10, 2018 7:08 AM
Long Term Tenants (by Carolyn [MO]) Jan 10, 2018 7:19 AM
Long Term Tenants (by Homer [TX]) Jan 10, 2018 7:32 AM
Long Term Tenants (by S i d [MO]) Jan 10, 2018 7:39 AM
Long Term Tenants (by Kyle [IN]) Jan 10, 2018 7:42 AM
Long Term Tenants (by S i d [MO]) Jan 10, 2018 7:43 AM
Long Term Tenants (by Roy [AL]) Jan 10, 2018 8:14 AM
Long Term Tenants (by David [MI]) Jan 10, 2018 8:32 AM
Long Term Tenants (by Robin [WI]) Jan 10, 2018 9:13 AM
Long Term Tenants (by Jeff [CO]) Jan 10, 2018 9:27 AM
Long Term Tenants (by Sisco [MO]) Jan 10, 2018 10:00 AM
Long Term Tenants (by Oregon Woodsmoke [ID]) Jan 10, 2018 10:57 AM
Long Term Tenants (by David [MI]) Jan 10, 2018 11:24 AM
Long Term Tenants (by Lana [IN]) Jan 10, 2018 11:26 AM
Long Term Tenants (by AllyM [NJ]) Jan 10, 2018 12:09 PM
Long Term Tenants (by Roy [AL]) Jan 11, 2018 1:35 AM
Long Term Tenants (by Lynda [TX]) Jan 11, 2018 1:04 PM
Long Term Tenants (by Andrew, Canada [ON]) Jan 12, 2018 5:07 AM
Long Term Tenants (by Roy [AL]) Posted on: Jan 10, 2018 5:30 AM
When you are screening rental applications, is there any way to determine how long this future tenant will rent from you? To make any serious money in this business we all need tenants who will rent from us for a minimum of 2 years or longer. We do not need revolving door tenants who move in and move out just because they got a new shack-up partner.
So, back to screening applicants, what things do you look for in an applicant that would give you an idea of how long they will rent from you?
Many years ago, I actually lowered my rents to below market thinking that would attract long terms tenants. It did nothing but produce less rent each month. Class C tenants will move out regardless of what the rent is or their lease says. If you have long term tenants, why do they rent from you instead of someone else?- --68.63.xxx.xxx
Long Term Tenants (by plenty [MO]) Posted on: Jan 10, 2018 5:39 AM
Service. Treated fairly. Good business practices. Good house. I answer the phone when then call. Fix things quickly. Care about my house and their home. Those are things I've been told by tenants. --66.87.xx.xx
Long Term Tenants (by Vee [OH]) Posted on: Jan 10, 2018 5:47 AM
I think it is impossible to tell, kids move for better job - granny wants to stay close, tenant moves to follow a job, hours cut as work load dictates, so they get part time work that can become fulltime work, city worker has budget cuts - 2 counties away the job is open.
Pay attention people who think a lease longer than 12 months is a get rich scheme - You can not chain them down, period - let the ELT fee allow you to help them from accruing remainder of lease responsibility - financial responsibility remains for damages to return unit to rent ready. Even really old people find a glossy pamphlet showing them -paradise falls- is cheaper and friends are waiting for them, so they move the rocker and medicine cabinet over there... --76.188.xxx.xx
Long Term Tenants (by David [MI]) Posted on: Jan 10, 2018 5:50 AM
Tenant will be less likely to move out with higher moving costs. If tenant has a lot of their own furniture (not rented), a lot of "stuff", etc. , it will cost more and be more of a hassle to move.
Also, make sure their lease ends in the high season so they will be paying the most rent if they move.
I don't really worry too much about this. If you have a significant number of units, it really becomes just a numbers game. --12.156.xxx.xx
Long Term Tenants (by WMH [NC]) Posted on: Jan 10, 2018 5:54 AM
People take one of our places in the first place because we fix them up nicely and charge a fair place. And we take pets, often THE number-one consideration.
They stay because there's nothing else out there in our price range that takes pets.
Yes, we have had tenants tell us we are the best landlords ever, but that's not why they stay! --50.82.xxx.xx
Long Term Tenants (by razorback_tim [AR]) Posted on: Jan 10, 2018 6:10 AM
To me the best indication is their stability in the rest of their life - how long have they lived where they are now, how long have they had their job? Someone who has a history of moving every year is probably going to continue to do the same. --70.182.xx.xx
Long Term Tenants (by Homer [TX]) Posted on: Jan 10, 2018 6:15 AM
I recently had a vacancy, with that vacancy I had loser after loser apply. Finally I had a great applicant, with a good paying job and a credit score over 700. I knew immediately they would be short term tenants. It helped that they told me, they would be buying a house in the area once the lease was up. Lucky, they couldnít meet with me quickly enough to pay the holding fee, so I moved on. I found someone less than perfect, that I feel has no path to home ownership. I too dislike short term tenants. I need to focus on less than perfect payment records to keep away from home buyers. --75.141.xxx.xxx
Long Term Tenants (by GKARL [PA]) Posted on: Jan 10, 2018 6:19 AM
I'm grappling with this question now, so it's timely that you raise this Roy. What I'm looking for is stability in their life; how long on the job, a support system in place, how long have they lived at a previous address, reasons for moving and etc. --207.172.xx.xxx
Long Term Tenants (by Roy [AL]) Posted on: Jan 10, 2018 6:36 AM
Homer (TX) - Thank-you for your reply. You just added a whole new twist or 'thought provoking idea' to my post here!
I sort of think like you do,...whenever I have Class B applicants, which is rare, I know they will probably leave at the end of their lease to buy a house. Maybe I should start turning them down like you did, however, that takes courage though. --68.63.xxx.xxx
Long Term Tenants (by RathdrumGal [ID]) Posted on: Jan 10, 2018 7:05 AM
We rent 900 square foot apartments -- not SFHs -- but turnover does not bother us. With standardized washable paint colors, Allure floors, faux wood plantation blinds-- we can easily turn a broom swept clean unit in 4 hours. Damages and smokers are another matter and delay turnover, but usually only by a day or two.
Turnover is a fact of life in LLing. We rent to people in transition. Good, stable people with good credit will eventually end up buying a house or re-marrying. I want those otherwise, good stable people who are going through a divorce, or a job change and need a place for a while. They make great tenants while they are with us.
Think about ways you can make your places easier to turn over -- everything from standardized colors to standardized ads that you modify and repost when you have a vacancy. Screen for tenants who are responsible, clean and do not damage property.
Long Term Tenants (by Sisco [MO]) Posted on: Jan 10, 2018 7:08 AM
I look for ties to the area; Family, Church,Schools, civic, sports. Also, what employer is an indicator, I have enjoyed high rates of retention from WM employees and horrible retention from a factory workers.
Lastly, People move less frequently past their 30's-40's.
While I hope that one day, all tenancies are 5+ years, it is a huge improvement in my operation to get 2 years over a 1 year term...baby steps. --72.172.xxx.xx
Long Term Tenants (by Carolyn [MO]) Posted on: Jan 10, 2018 7:19 AM
A key factor with my longest term tenant (35 years) is she is paying below market rent. This is my only out-of-state property, and I have been willing to have low rent because she is a good tenant who takes care of the place, etc. I can afford one house like this because of the special situation. My mortgage was paid off years ago, and I have not needed to have a property manager.
She also has part of her rent paid by the housing authority there, and I am willing to deal with the housing authority.
She knows I expect to sell the house fairly soon, so she worries about that. She hasn't been able to find anything else that comes even close to my house in size and quality - and that she could afford.
She knows I am very close to selling, and she is making even more of an effort than earlier to take care of minor things on her own. When I told her she could stay another year recently, her reaction was to cry because of her relief. She is near the age and health point where she may soon need to go into some kind of senior facility. I probably will use that as the time to sell the house.
Incidentally, we have never met, and she doesn't have a computer. Correspondence is by letter and phone.
Long Term Tenants (by Homer [TX]) Posted on: Jan 10, 2018 7:32 AM
Roy, just for clarification. I didnít technically reject these people with great credit and a great job. They rejected me. Standard operating procedure is i collect a $600 non refundable holding fee within 24 hours of approval of the applicant. No matter the day. Their approval email went out on a Saturday about 3pm. They didnít want to meet me until Monday evening. I wasnít going to hold the house that long without money. They had other plans for Sunday afternoon. I know I looked like an a@@, but I wasnít going to bend over backwards for a tenant that I knew was going to be a one year tenant. This was for my only one bath house, too hard to rent anyway since all houses in my town have at least two baths, and many have 3-4 baths . I had it rented a few days later anyway --75.141.xxx.xxx
Long Term Tenants (by S i d [MO]) Posted on: Jan 10, 2018 7:39 AM
In general, I find older renters stay longer. They aren't looking to buy a house most times and/or are "life long" tenants. Treat them well, respond fairly, and keep the rent raises in line with market and that's about all you can do.
Super well-qualified or young tenants are always itching for the latest new thing. The minute a newer/slightly nicer unit comes open, they're gone. They think nothing of taking 3 days off work to pack and bribing their buddies with pizza and beer to have a weekend moving party. Give 'em another 10 years and 5 moves and they'll be sick of it. --173.19.xx.xxx
Long Term Tenants (by Kyle [IN]) Posted on: Jan 10, 2018 7:42 AM
With my tenant pool, I consider anyone that renews a lease for a second year long term. I focus on fast turnovers to make the revolving door tenants less of an issue. The ELT can also help if they don't stay for the first 12 month lease term.
I don't have any one thing I can point to that would be discovered in screening setting my long term tenants apart from the short term ones. I have had long term tenants with previous evictions, short term jobs, kids, no kids, pets, no pets.
Usually, my tenants move because of a life change. New job, new kid, new gf/bf, break up, divorce. I'm not sure how you can screen for that. --73.102.xxx.xx
Long Term Tenants (by S i d [MO]) Posted on: Jan 10, 2018 7:43 AM
I need to amend my statement "that's all you can do."
You can always ask why they are moving and what you can do to keep them. That has worked for me a couple of times, but not frequently. This is one of Mr. Taylor's strategies.
Another one is to do like Mike Butler and only offer 3-year leases, with a 1 month free rent if they successfully complete the first lease and sign a 3-year extension. Sort of a bribe, but if it works hey why not? I have never tried this, so I cannot vouch for it. Like you said, if they decide in month 20 they're going to move, having to wait another 16 months for a free month isn't going to phase them. --173.19.xx.xxx
Long Term Tenants (by Roy [AL]) Posted on: Jan 10, 2018 8:14 AM
If you have tenants breaking their leases and moving out in less than 12 months,...do you see that as 'your fault' in not screening those applicants better?
Since last August, I have been averaging one vacancy (SFH) per month. Two were evicted, however, all of the other ones I trying to decide if I need to make any changes in my screening of applicants. --68.63.xxx.xxx
Long Term Tenants (by David [MI]) Posted on: Jan 10, 2018 8:32 AM
Roy, if they break the lease, you should be able to recoup by ELT or from their deposit. --12.156.xxx.xx
Long Term Tenants (by Robin [WI]) Posted on: Jan 10, 2018 9:13 AM
1) Buy houses in a desireable location (quiet neighborhood)
2) Select people with good jobs but too much debt to buy a house any time soon.
3) Look at how long they've been in their last house and last job.
4) Respond to repair requests promptly and be personable. --204.210.xxx.xxx
Long Term Tenants (by Jeff [CO]) Posted on: Jan 10, 2018 9:27 AM
With good prospects there is no way to tell. They could be great people but a job transfer comes up, a relationship situation changes, ect. They could move out in a few months.
I have no problem with turnovers. They usually mean higher rent.
Long Term Tenants (by Sisco [MO]) Posted on: Jan 10, 2018 10:00 AM
"If you have tenants breaking their leases and moving out in less than 12 months,...do you see that as 'your fault' in not screening those applicants better?"
Yes I do. As others have written, many moves can't be avoided and are just the nature of our business.
But in reading your posts, you often get a zero notice move out and a labor intensive turnover. These are due to poor screening systems.
Long Term Tenants (by Oregon Woodsmoke [ID]) Posted on: Jan 10, 2018 10:57 AM
There is really no way to tell. Because they know that landlords don't like short term tenants, most of them will just lie if you ask them how long they plan to stay.
They tell you they plan to stay for years means no more than telling you how much they love to garden and asking if they can plant flowers.
You can look for bad credit or not enough income to qualify for a mortgage. But that doesn't stop job loss, divorce, illness, or itchy feet.
None of my tenants ever leave to go rent from someone else in the same area, but they still move for a lot of different reasons. None of which I can do anything about. --174.216.xx.xx
Long Term Tenants (by David [MI]) Posted on: Jan 10, 2018 11:24 AM
"None of my tenants ever leave to go rent from someone else in the same area" I think that's the best you can hope for. Life is unpredictable and that's why some people rent. --12.156.xxx.xx
Long Term Tenants (by Lana [IN]) Posted on: Jan 10, 2018 11:26 AM
Luck is all it is. Some stay, some fly. I just rented sight unseen to the new editor of the local newspaper. She filled out application, owns her own home out of state, and her credit rating was 815. I let her write a check and broke all sorts of my own rules like letting her turn over utilities after she moved in. Too good, I will lose her.
My hubby and I used to discuss it. The really good buy houses. We want the not so good. Those who pay rent, but will never climb fully up the ladder, but not so bad as to evict. The problem with long timers is they end up getting below market rents. I have 16 units and have been in business since 9/2000. My oldest tenancy will turn 10 next month, bless their hearts. Two others are approaching 9 years and another 6 years. Four more are over 2 years.
I try to provide really good service on repairs and make upgrades regularly. --216.23.xxx.xx
Long Term Tenants (by AllyM [NJ]) Posted on: Jan 10, 2018 12:09 PM
If a husband and wife applies and they are making well over the amount of rent, say four times the rent or more, then you can be pretty certain they will not stay that long.
Much older folks who are not husband and wife, tend to stay longer as they have probably already tried a SFH or lost one.
Folks nearing retirement age will likely not move out quickly.
Divorced women who are average looking will probably stay longer. This applies also to widows.
Single folks or couples with dogs and cats, which you allow, will probably stay a long time.
Underemployed single people who are average looking will probably stay a long time.
Unmarried folks in there mid thirties and above will probably stay a long time.
My tenants stay a long time and these are the folks who have done so. --73.33.xxx.xxx
Long Term Tenants (by Roy [AL]) Posted on: Jan 11, 2018 1:35 AM
Not all of my tenants are breaking their leases and moving out early. I have many good 2 year plus tenants. I am doing something right in picking good tenants. I seem to be able to get good tenants 80% of the time but it is that 20% that created the need for this post.
I have one vacancy now, another one coming Feb 1st and I may boot another one in March just because he has become a PITA. March is always a good month here to remove all of the deadwood from the shed. --68.63.xxx.xxx
Long Term Tenants (by Lynda [TX]) Posted on: Jan 11, 2018 1:04 PM
Pets! My longevity schtick is I take multiple pets--even 2 big dogs. Families with big dogs or multiple pets have a HARD time finding a rental that will take them. Whwn they find one they stay. Right now I have a 6 yr--soon to be 7 year tenant w/2 big dogs, and one with 2 cats in my condo who is 4 yrs--going on 5. All my properties have pet doors, strong fenced backyards, and no carpeting. --108.87.xx.xxx
Long Term Tenants (by Andrew, Canada [ON]) Posted on: Jan 12, 2018 5:07 AM
Ironically, with rent control here and annual allowable rent increases BELOW inflation, long term tenants devalue a rental property and greatly decrease a landlords return on equity. --65.94.xxx.xxx