Slumlording...
I was was talking with our banker about our plans for the cash-out refi. In the normal course of this conversation I explained that I was planning to use a portion of the cash to continue interior renovations. He looked at me, a bit oddly, and politely told me that most landlords in my areas meet the Section 8 minimum and move on.
I would have thought that after 10 years, he would understand that our personal standards are a little higher than that...not least of which is because we then attract the good tenants and they take care of the property.
We discussed one property, where I fully expect the tenants to be lifers and never move out. He said why bother with fix ups if the tenants are happy. I said, I think they'll move out when they die but I'd rather they didn't die because of an electrical problem we missed!
Comments (9)
You are definitely right. Good comments from others too. We have 15 residential units (houses and duplexes) and specialize in renting to people who are low income. When we buy a property that has been neglected, the first thing we do is introduce ourselves to the tenants and notify them will not raise the rent at this time. That quells tenant fears. Then we start making necessary repairs and desirable upgrades. The tenants are much more cooperative and helpful in letting us know the history of the property and lead us to what needs attention. If I am working with a contractor who tries to cut corners and says "good enough, it's only a rental", they get to hear my philosophy, "It's not just a rental, it's someone's home." and "We are going to do this right." If the unit is not suitable for me to live there, then it is not suitable for tenants. If the contractor has a different attitude about it, then they are no longer working for me. Show respect for the tenant and their well being, and they are likely to respect you. Take pride in your property, and the tenant is likely to take pride in their home and keep the place in good shape.
Marcia Maynard, about 11 years ago
I'm with Al, you guys are the best. I just fired a contractor who did the "it's just a rent house" thing once too often.
Deborah Burian, about 11 years ago
Love this post and you fellow landlords. So good to know I'm not alone in the way I see things.
Al Williamson, about 11 years ago
Good tenants are attracted to good properties. Crappy properties sorta attract people who don't want or expect "nice" things. You get what you put out, it comes right back out to. I do lower income neighborhoods, and I find the best people with respectable jobs, because they may live in that neighborhood, but they personally know they deserve and can take care of a well renovated property.
Lisa Phillips, about 11 years ago
I totally agree. I wouldn't own a rental that I wouldn't want to live in myself. I don't want to be embarrassed to tell people I own a particular property because it looks like a dump. A nicer property won't guarantee that someone will take care of it. But a run down, outdated, poorly maintained property certainly will not attract a decent tenant. You get what you offer.
Angie W., about 11 years ago
We too pride ourselves on having some of the nicest rental units on the street. We still use cost effective and durable materials, but they are clean and nicely updated. In addition to renting faster and for more money, we've found that clean people look for clean places to live. It's not a guarantee that the tenant will respect the property, but having an ugly rental it's almost assured you'll get a tenant that won't take care of the place.
Scott Sutherland, about 11 years ago
One of the lines that irritates me most is "It's only a rental". And it is always delivered like it is a carte blanche excuse for inferior quality, laziness, or sloppy work. I mean, if their Mom or daughter was living in the property, would they be so cavalier?!? We believe all of our rentals should be someplace where we could live with our families. Tenants deserve clean, healthy, efficient places to live. It is true some tenants will do their best ... or worst ... to ensure the place is neither clean nor healthy, but we are becoming quite proficient at ensuring those folks never get keys.
Roy N., about 11 years ago
I agree! I could get away with doing a lot less in my rental properties, but I also have high tenant satisfaction that I believe most of my tenants will stay for a long time. I love when I'm showing a new property and people walk in and say amazed "Wow, what a nice place!"
Jennifer A., about 11 years ago
Don't worry about the haters. I, too, have made "upgrades" to properties that people asked me "why would you do that for a tenant, don't bother". There's a line to be drawn between making the place "nice" and making it "too nice". There are some landlords who settle for "good enough" but I strive for "nice". I have a high retention rate. Correlation? I think so! You spend the money to keep the property nice, or you spend the money on tenant turnover. When it comes time to sell a property, I'd rather sell a "nice" property rather than one where I'm showing constant turnover. High retention = less headaches. I think you're doing the right thing so you get my vote!
Dawn Anastasi, about 11 years ago