Originally Posted by tryan
Either you're putting shortterm people (i.e. wrong people) or the rent is too high. Cutting the rent will bring a larger crop of the "right " people. Also note, being a hard-@ss will drive good people out.
FWIW, I run at 5% vacancy. Only exception would be when I am holding a vacancy to sell the unit.
20% equates to 2 months/year.....roughly
I have only had them for 2 yrs or so let me figure this out exactly...
Rental A) sat for 1 month after rehab. Evicted after 6 months. Sat for 5 weeks for cleaning and finding new tenant. Moved after 8 months. Sat for 5 weeks again. Rented since...roughly 5 months. So it was empty for about 14 weeks....or 3.5. months....so it was rented 19/22.5months = 15% vacancy
Rental B) Rented immediately after rehab...tenant stayed 18 months. Rehabbed and sat for 6 weeks. Rented for 8 months since....empty 1.5/25.5 months. Vacancy = 6%
So i guess it's a bit lower, but once I've owned them for a longer period and can find the right people, I'm sure vacancy will drop dramatically.
I'm happy having strict rental guidelines. Although I struck out on the first 2 people at rental A, I never really lost $$ because i kept security deposits and didnt incur much cost- they left amicably and agreed to me keeping their $$ in exchange for not pursuing the balance