Property managers and rental property owners love to talk about how stupid tenants can be. Well, it’s my experience that investment property owners can be equally stupid.
NOTE: Yes, my use of the word stupid is meant to illicit a response. Perhaps ignorant would be a better word. Webster describes ignorant as “
Landlords and Owners, here is something you need to know: Tenants that move at the end of each lease cost you money!
It’s my general rule of thumb that you need to keep tenants on average about 18 months to make sure you are making money. Especially if you are using a property manager. Why? There are so many costs to changing over tenants.
- Paint, carpet, repairs
- Lease out fees if using a property manager
I see owners squabble over repairs that will cost them $175-$200 and piss off tenants because they won’t fix something. Then the tenant leaves, they end up with 30-45 days of vacancy, some electric bills to pay and more.
If your rent rate is $1,100 /mo and you take in to account some of the other expenses you may have cost your self $1,500 – $2,000 over a $200 repair. Is that good math? Am I missing something?
This isn’t a rant. But I see it happening right now with an owner who is new to investing. I am not mad at him. I actually am trying to educate him. But I seem to be losing the battle sometimes.