Delinquency and Turnover - C Property

[Sanjeev Vij]

Hello, I have owned a 1972 built, 40 unit apartment deal for little bit over a year now. It's a typical C property in a working class C+ area managed by local property management that deals in multi family. Our average monthly rent is $775 + utilities for 2BR, 1Bath. We have onsite leasing & maintenance staff for few days a week. Our current delinquency rate is 8% of annual collections and annual turnover rate is 70%. Some of this was anticipated during first 6 months since property had management & maintenance issues & was a value add deal. However In last 3-4 months, we are evicting tenants that my management company put in place in last 6 months. I feel our turnover rate & delinquency rate is too high & we are not retaining tenants. My management company claims tenant screening is an automatic process based on minimum criteria of income should be minimum 3 times monthly rent & it does not mean leasing agent is not doing a good job screening tenants. For those of you who manage typical C deals, this size or over...I would like your thoughts if these delinquency & turnover rates are normal in a C deal. In your experience, what might be the issue? Any other clues that can help me drill this deeper. Thank you.