Tuesday, July 28, 2009

Empty Rental Property

Question from FC regarding our tenants:

What are the reasons the tenants are leaving? Were they able to find a better deal somewhere else, were they unhappy for some reason that is potentially fixable (or not), or for some other personal reason? What kind of incentives will you offer to try to convince them to stay? Lower rent, one-time credit, different terms, home improvements?

Rental #1 they have decided to move on because the two roommates have made the choice to go their separate ways. Why? We don't know, as we can only ask so many questions. We did offer a concession on rent of $150 a month and also offered to make some improvements.

Rental #1 has been rented for the last five years without ever having to advertise it and the tenants that just moved out had been there two years.

Rental #3 has always been our worst rental, the neighborhood is in disrepair, we have a foreclosure to the south and a recently sold foreclosure to the north of this rental. As an aside, now that the foreclosure to the north has sold I will be filing code complaints since the new owners (an investment company) have done nothing to rehab the property. The folks in rental #3 have decided to stay another month but we did not make any concessions as they are not the greatest tenants and I'd almost rather have the property empty at this point.

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