The Cold Hard Realities Of Winter

Kansas City iceKansas City ice

Owning investment property in Kansas City can be challenging.  Especially in the winter time.  If your income property is vacant in November, there is an excellent chance it will remain vacant at least until February.  No one wants to hear it.  But it’s true.

Yes.  You can rent a house in December or January.  But it’s much tougher.  So what do you do?

First, if you are buying an investment property going into the winter make sure your numbers work knowing you may very well be holding the property through 3-4 house payments before any income begins to flow.  Happily, this was my advice to a buyer whose property is still vacant now going on 58 days.  But we bought so significantly below market that he is still way, way ahead.

Second, if you are unlucky enough to have a tenant leave or skip you can get real agressive with incentives.  Maybe you could offer:

  • Second month free.
  • 1/2 price rent for months 2 & 3.
  • 1/2 security deposit.
  • Landlord pays utilities for first 3 months.

Those are just some thoughts.  But don’t forget that you do not want this same situation next year.  So if you sign a new tenant up in January, offer them a little something to get them to sign a 13 or 14 or 15 month lease.  There’s no law that says a lease has to be 12 months.

Get creative.  And make it happen.  Make your Kansas City real estate investing business both profitable and stress free.  Do you have any suggestions? 

2 Comments

Filed under Property Management

2 responses to “The Cold Hard Realities Of Winter

  1. What great advise Chris has once again given investors! No one wants a pretty picture painted for them if it is only placed under the “fantasy” category.

    The one thing our company would have to disagree with is offering 1/2 off the security deposit; always collect a security deposit equal to one months rent and then offer your special on the rental payment itself.

    This way, when move out time has arrived, you have the full deposit in savings to review your property and determine damages. With a full deposit at stake more tenants are becoming savy in regard to getting their full return!

  2. Cynthia – Thanks for commenting. I’m not going to argue with you on your thoughts about deposits. I was simply suggesting a tactic. Not one I like. But something to try.

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