Par for the Course or Reason to Worry?

[Michelle Cohen]

Hello! We purchased our first investment property about two months ago. We live in Florida, but the triplex is in the Cleveland. The neighborhood is halfway decent... it's in the Clark-Fulton area near the hospital, if you're familiar with Cleveland. It's a mid-to-low C grade area, but it's being revitalized, so we have some hopes of it turning into a C+ area at some point. We purchased it with two tenants already in it and one vacant unit, and we have a property manager handling everything.

Unit 1, the tenants didn't pay February's rent. Today is March 1, so I'm guessing they're not planning on paying March, either. The PM mentioned the possibility of eviction, but as far as I'm aware, nothing has been started yet.

Unit 2, the tenants did pay February's rent and said they'd like to move out in February. I have not heard from the PM that they moved, so I'm assuming they did not, at least not yet. I have no preference as to whether they stay or go, as long as they remain reliable payers or we get someone else in there who is reliable.

Unit 3 has been on the rental market for 5-6 weeks now. We reduced the asking rent after two weeks, but still nothing. PM said there have been a few showings but otherwise, nothing is happening.

I realize it's wintertime and people don't want to move in the winter in Cleveland unless they absolutely have to, so I'm hopeful that we'll see some action on the vacant unit this month or next, but I'm wondering if this is all just par for the course or if we should be concerned. Our goal was to buy another property (probably a duplex) this spring or summer, but I'm not sure if we should  jump into that or hold off a while and wait and see.

Any advice/suggestions/reassurance?

[Theresa Harris]

Talk to your PM.  You need to get started on the eviction for unit 1.  For unit 2, if they were under a lease and left early, then they will have to pay a penalty for breaking the lease.  With unit 3, as the PM where it is listed and if any similar units have been rented in the area recently (ie is it just your unit or it is slow).