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Updated over 7 years ago on . Most recent reply

Delinquency and Turnover - C Property
Most Popular Reply
Your question is much better answered by looking within. What is the typical turn over, eviction, and delinquency rate for C properties in your vicinity? This will help guide you to see if your management company is doing a good job. While application criteria is good as a pass/fail, the acceptance standards need to be tweaked at least yearly to reflect the tenant pool and market. Would tighter standards leave you with more vacancies unfilled or would it increase retention? Again, only market data can help that question.
Not that it is the same as your situation, but in Los Angeles, the rents I charge are purposely kept under market to minimize turnover costs. On top of that, LA has a very low vacancy rate right now. Across my managed portfolio of several MF locations I'm seeing delinquency of less than 2%, maybe filing 2-4 evictions per year, and turn over is around 13% mostly due to job location or familial changes. My rents are not top of the market but neither are my vacancy/turn costs. After a full analysis of income vs expense vs time vs effort, I feel I am running a very balanced operation.
-Matt