Reducing turnover

[Josh McCullough]

What are y'all doing to reduce turnover in your homes, or lots? Are you using credit checks? It just seems like everyone(at least around here) has bad credit. Stable income at least 3x's total housing payment? Do y'all check eviction records?

Through some ideas out!
Thanks

[Sam Parkins]

"Skin in the game" is a big factor for us as well as the screening process. However, we set up a lot of "hoops" to jump through as well. Things as simple as the following will give you some insight into their overall responsibility:
1. Always have a buyer call us back at a set time on a set day for follow ups. For example, here's our application (if not filling out on the spot) please fill out and call me at 2:00 on Thursday for the follow up. I want to see how well they deal with "deadlines".
2. Similarly, have days/times for them to physically drop off applications. See if they hold their time.
3. Check references, employers, and landlords.
4. Believe it or not I always explain to folks how they can get OUT of our deals. The psychology of a buyer when buying just about anything involves buyer's remorse and a trapped feeling. The tenants with buyer's remorse we try to help with congratulation letters/notes/calls. We try to reiterate the fact that they've got a great opportunity and we're there to help them. The trapped feeling we try to eliminate with giving them the "out" during the contract signing. We do this because the trapped buyer or the buyer that thinks they got "had" will ultimately not be happy, thus will take LESS care of the place and will not have the desire to keep moving forward in the process; i.e. if times get tough they'll bail.

As such when we get a call from a committed buyer that needs help, (and this is NOT recommended) we'll be willing to help them (to an extent and within reason) on a given month allowing them a week or two late payment (1 time) without penalty. IF they are late because of financial hardship and have been a great tenant, we won't charge that late fee because it would cause the "snowball" effect and they may never recover. We provide this service to the above qualified buyers that are legitimate and great buyers that understand the opportunity and understand the whole situation and this usually has happened in the case of job turnover. In our experience doing this almost ALL have gotten back on their feet at their new job and just needed a little bit of help for one month. Our screening process and buying process helps us to identify these folks and try to work solely with them.