05.02.14 Moving out, moving up
Starting last May, we have developed a trend of having a move out every other month. I guess eight tenants at an average of one year occupancy would be 8 move outs a year. Seems like I should be content with a trend of six a year, but wow it comes around fast! Passive incoem this is not...
When I was calling to check references, another landlord was whining about the cost involved in turnover after just a year. I agree, but don't see how to influence tenants to stay longer when they normally leave because their life is in a tailspin.
Our most recent notice, however, is a family that is purchasing a house. That is the first time we know of where a tenant is moving into a better situation. They really wanted a puppy a few months ago, that may be their reasoning, but I'm not willing to let any pets, much less a puppy, in this particular unit. I'm excited for them.
The good: we get to raise rent.
The bad: bumping up against vacation plans, 50/50 chance of getting it settled prior.
The interesting: This is the first time we have actively marketed a unit while it is still occupied where we're experiencing a good response rate.
Comments (2)
On our rental application we ask "how long would you be renting from us?". Their are 4 options for response (less than 1 year, 1 year, 1-2 years, and more than 2 years). This helps in 2 ways. We require a 12 month lease, and can immediately disqualify anyone that says less than a year (and sometimes they do, even though we advertise 1 year lease). We try to take applicants that say 1-2 years or more than 2 years. Its not always foolproof, because as you said, many times people are leaving because their lives are a mess. We do take people who say 1 year, but only if their isn't a better option. This helps us focus on long term tenants. We have several tenants that have been with us for 10 years+, and many more that have been with us 3+ years.
Elizabeth Bassett, over 10 years ago
Thanks for the insight. We use a point system for criteria; they lose serious points if they have never lived in a prior address for over a year and gain serious points if they have lived in all prior addresses over a year. Thinking maybe I should graduate the points for more focus than the one year mark, especially since current applicants have been at each address for about 13 months... We have an open ended question about how long they plan to stay and we often get "as long as possible", like that is an answer. Love your multiple choice, but this is on the canned part of the application needed for our screening company.
Michele Fischer, over 10 years ago