Comments on: To Over-Do or To Under-Do? – That Is The Real Estate Investment Question

By: Ken LaVoie

Ken LaVoie — Mon, 02 Jan 2012 10:32:01 +0000

I tend to do the same when I can with fixing up. I think, long term, it decreases the “hassle factor.” It creates an “upward pressure’ on the type of tenant I attract, reducing vacancies and allowing regular rent increases to be ‘credible.’

these are all things that don’t show up on my initial excel document I use to evaluate a property. I might use a generic 8% vacancy rate for “testing” but maybe my “over delivered” property that I finally got my dream tenants in hasn’t had a vacancy in 3 years, and even though I spent a little too much on cap imp’s,. because of my zero vacancy, it still cash flowed like I predicted.

By: St George Rentals

St George Rentals — Wed, 27 Aug 2008 17:33:14 +0000

I would make my rentals in very good shape. I agree that making something more attractive would increase the chances of getting better tenants.

By: Peter

Peter — Wed, 25 Jun 2008 17:54:28 +0000

I think what is more important that over-do is “over-deliver.” I don’t think you need to over-do on all of the fixtures, appliances, finishes, etc. as much as you need to “overdeliver.”

I think if you overdeliver on your rental’s look, your service, your “tenant support” (a.k.a. customer support in business terms) and you’ll be well off and your rentals will rent. Why? Because of one simple marketing technique that’s been around for ages:

“word-of-mouth” People who rent know other people who rent and the word will spread that you are the nest landloard in town.

Just my 2 cents.

Peter

By: Mike Farmer

Mike Farmer — Sun, 22 Jun 2008 02:09:42 +0000

Thanks for the confirmation Lisa

By: Lisa Friedman

Lisa Friedman — Sun, 22 Jun 2008 01:30:35 +0000

I always overdo. I believe my tenants respect both me and my homes more. People want a nice place to live and to know that you respect them. I also receive generally about $100 – $150 more per month than most of my competition for the same style homes.

When my tenants are ready to buy, I am sure they will remember me as their Realtor as we have such good relationships.

By: real estate directory

real estate directory — Sat, 21 Jun 2008 07:49:53 +0000

This is a specialist market, of course, which demonstrates, I guess, that different rules could apply for different localities.

By: Mike Farmer

Mike Farmer — Thu, 19 Jun 2008 12:13:48 +0000

Thanks Athol, good practical advice.

By: Athol Kay

Athol Kay — Wed, 18 Jun 2008 22:31:44 +0000

Everything must be functional. All the lights need to work, the stove needs 4 burners that work instead of 3 that do and 1 that doesn’t. If it’s trashed – replace it. Otherwise repaint/repair. But everything hinges on the idea that you can actually rent a place out and have a functional home.

If something like a fridge/stove/washer breaks in a less expensive apartment, and you have a more expensive apartment with an okay appliance. Put the the new appliance in the better apartment, and hand me down their appliance to the lesser apartment. Same $$$ but 2 happy tenants instead of just 1.

By: Mike Farmer

Mike Farmer — Wed, 18 Jun 2008 22:09:24 +0000

Thanks for the tip Wendy.

Mike

By: Wendy Polisi

Wendy Polisi — Wed, 18 Jun 2008 18:42:30 +0000

My natural tendency, like the author is to overdo! I agree that when people have something nice they are more likely to take care of it. One thing I try to do is to overdo on a budget by upgrading lighting and appliances purchased from Craig’s List. It is a great resource for adding some flash to a home without hurting your bottom line.

By: Mike Farmer

Mike Farmer — Wed, 18 Jun 2008 11:22:55 +0000

Thanks for the comments.

By: Nadine

Nadine — Wed, 18 Jun 2008 04:58:39 +0000

You have a very interesting opinion about increasing value, attracting better tenants and keeping them satisfied. I do agree with you, especially with your six reasons.