So I purchased a nice rental property about 3yrs ago and at the time I purchased it there was already a tenant in the home going on 4yrs. I never went to the home nor went inside, I purchased it strictly from the pictures ( call me crazy to buy in my own market and not even drive by ). So I received word about 60 days ago that the tenant will be moving out because she is getting married and they are now able to buy a home. Now you can imagine how I think the home is going to be left after someone has lived there for 7yrs. To my shock the home was left in incredible condition. No garbage or trash, I could see the vacuum lines on the carpet and they cut the yard before moving!! All I have to do is replace a few burnt out bulbs, take care of one stain in the carpet and paint one bathroom, this will cost me about $500 total!!!! This is a large home around 3,000 SqFt so it could have been far worse!! I tell this story bc tenant turnover and repairs are the #1 killer for an investors long term success. If you have a new tenant every year you will have 2 months of no income and tenant placement fees along with normal re freshening of the home. This will basically eat up the whole year of cash flow, well almost.
Most of the time the tenants that I have leave the place pretty well cleaned out and such, I just haven't found one that left it as clean as I would like. Maybe I just like things REALLY clean.
I'm sure that you know that there are more bad stories than good ones.
I bought my 4 plex in Tucson and the former owner let me know that one of the tenants was several months behind on rent and owed him over $2000. I guess he figured that since he was selling, he didn't care and that I would handle it. The very first month, she did not pay me, my PM sent her a 5 day letter, and low and behold, she paid the rent.
Fast forward 1.5 years and she still lives in my 4 plex. She pays me every single month. She is the only inherited tenant left in my 4 plex. I guess she figured out pretty quickly that I wasn't a pushover like the prior owner, and that I was willing to evict her. On top of that, she has had the lowest amount of maintenance in her unit in my entire property.
I have both lower end and higher end properties, on my lower end properties they've been trashed every time. I have my first higher end property that is getting ready to turn over at the end of the year, she's been a great tenant and the house is always immaculate every time I've gone in there. I'm sure she'll leave it in great shape.
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