{"id":40586,"date":"2013-04-01T10:30:37","date_gmt":"2013-04-01T16:30:37","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=40586"},"modified":"2024-05-29T03:28:35","modified_gmt":"2024-05-29T09:28:35","slug":"2013-04-01-location-foster-long-term-tenants","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2013-04-01-location-foster-long-term-tenants","title":{"rendered":"Does Your Location Foster Long Term Tenants?"},"content":{"rendered":"

Selecting good tenants is one of the keys to being a successful landlord<\/a>.\u00a0\u00a0 Getting those good tenants to stay for the long term is another.\u00a0 Long term tenants are good for business as they reduce the costs associated with tenant turnover.\u00a0 However your property\u2019s location and the associated tenant base may not foster long term tenancy.<\/p>\n

Renting to the Hip and Trendy<\/h2>\n

Many of my properties for example are located in what could be called the \u201chip and trendy\u201d part of the city.\u00a0 It has a lot of the cool restaurants, clubs and other amenities that attract the so called \u201cyoung urban professional.\u201d\u00a0 As such, it is a strong rental market (and thus attractive to people like me) and by using our tenant selection criteria<\/a> we locate and rent to many great tenants.<\/p>\n

The flip side of the above is the fact that most of these \u201cyoung urban professionals,\u201d while being great tenants, are in that stage of their lives where change is a constant.\u00a0 They graduate school, take new jobs, move in with significant others, break up with significant others, get married, have children, buy houses and a whole host of other things that cause them to move on in their life.\u00a0 All of which tends to increase the level of tenant turnover.<\/p>\n

I often talk with landlords who own properties in other parts of the city who see a complete reversal of my issue.\u00a0 While they may not get the most creditworthy tenants, they search for and get tenants that will stay for the long term.\u00a0 Their tenants are generally in a later stage of their lives and have friends or family nearby, want their kids to go to a particular school or their job is in the area.<\/p>\n

As I said, our tenants are generally pretty good and we generally get our properties back in great condition.\u00a0 But there is always \u201cnormal wear and tear\u201d with little things that need to be fixed or touched up.\u00a0\u00a0 Being in a strong rental market also means that we can usually re-rent our properties very quickly.\u00a0\u00a0 But turnover does cause some administrative expenses.\u00a0 There is paperwork to be filled out and reviewed, property showings, ads to be placed, etc.\u00a0 In short, turnover costs us time and money.<\/p>\n

The Takeaway<\/h2>\n

So be aware that some strong rental markets may not be the best rental markets.\u00a0 Ideally you want tenants who can and will pay and who will also stay for the long term.\u00a0 My rental market is just not conducive to both.\u00a0 Am I complaining, not really, well maybe just a little, but we generally do pretty well by offering a quality product at a competitive price.\u00a0 It is however amazing what you can see with hindsight.<\/p>\n

I am interested to hear others take on this subject.\u00a0 What is your rental market like?\u00a0 What type of tenants does it provide for your rentals?
\nPhoto: Keoni Cabral<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Selecting good tenants is one of the keys to being a successful landlord.\u00a0\u00a0 Getting those good tenants to stay for the long term is another.\u00a0 Long term tenants are good […]<\/p>\n","protected":false},"author":726,"featured_media":169812,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[190,263,58,59,5973,790,569],"class_list":["post-40586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording","tag-landlord","tag-market","tag-real-estate","tag-real-estate-investing","tag-real-estate-market","tag-rental-property","tag-tenant"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/40586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/726"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=40586"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/40586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/169812"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=40586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=40586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=40586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}