Follow My Vacancy Through Rehab and Tenant Placement

[Joe Splitrock]

I got a call yesterday from a tenant of five years to give 30 days notice. They are buying a home, which is how I typically lose tenants. The tenant has been pretty hands off over the years. They came to me a couple years after they had lost their home to foreclosure. Over the years they have been late a couple months each year paying late fees, have gone through multiple checking accounts and have gotten shut off notices for utilities. They were always barely with their heads above water so I assumed they would be life long renters. This is probably a sign of today's loosening standards.

The house is a 4 bedroom 2 bath built in 1984. It has a two car garage and fenced yard. It is located less than one block from an elementary school. The neighborhood has improved since I purchased the house in 2004. I have tried to do some updates. The house had new paint and carpet when they moved in. I had the exterior siding repaired and painted while they were living there. I had the original furnace and AC replaced. Earlier this year we replaced the original water heater (I am sure the new one wont last 33 years).

They will be gone as of September 30th, then begins the rehab and renting process. 

They were paying $1050 per month which is the rate from their original lease. They have been month-to-month at that rate for the last five years. This is not how I run my business today, but when this tenant rented I told them if they stayed long term we wouldn't raise their rent. At the time it sounded like a good idea. 

Here is the good news about them leaving. The house will rent for between $1250 and $1450 per month today. The rent will be a direct result of how much we update the property. We will be going through a selection process of what updates to make. I am going to update this thread as a diary and ask for help with decisions along the way.

First order of business is we need to make a list of rehab items and budget. Then line up people for major items. I am going to have a business dinner with my wife tonight to discuss. I will try to track all expenses to share my whole process with you.