Why Are We Okay With Losing Income Every Time a Tenant Leaves?

Florida, US · Member since 2025 · 13 posts · 2 votes

I’ve been thinking about this a lot lately:
If a tenant moving out destroys our cash flow, why is that considered “normal?”
Isn’t that a broken system?

Two months of no rent.
Thousands in repairs.
Weeks spent finding someone new.
And we just call it part of the business?

What if there was a way to set up your lease—and your tenant relationship—so that you didn’t have to restart the clock every year?
I'm realizing it's not about avoiding turnover completely...
It’s about choosing tenants and agreements that make turnovers rare (or even unnecessary).

Curious if anyone else has made changes like this?
Would love to hear what’s worked for you.

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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes

Well, this post sounds like the beginning of every other advertisement on Youtube these days. But on the off chance that it's not an advertisement, and you're really wondering how to avoid thousands of dollars worth of losses on tenants - screen well, keep rents at or slightly below market rates, maintain and repair your properties promptly as needed, be a responsive landlord, and don't deal in C and below properties and you're probably as close to guaranteed as you can be.

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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
1y
Well, this post sounds like the beginning of every other advertisement on Youtube these days. But on the off chance that it's not an advertisement, and you're really wondering how to avoid thousands of dollars worth of losses on tenants - screen well, keep rents at or slightly below market rates, maintain and repair your properties promptly as needed, be a responsive landlord, and don't deal in C and below properties and you're probably as close to guaranteed as you can be.
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21 Reply
- James Hamling
  Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
  1y
  Quote from @JD Martin:
  
  Well, this post sounds like the beginning of every other advertisement on Youtube these days. But on the off chance that it's not an advertisement, and you're really wondering how to avoid thousands of dollars worth of losses on tenants - screen well, keep rents at or slightly below market rates, maintain and repair your properties promptly as needed, be a responsive landlord, and don't deal in C and below properties and you're probably as close to guaranteed as you can be.
  "...this post sounds like the beginning of every other advertisement..."
  
  Because it is. Judging by his other posts (below), it's yet another click-bait post....
  
  Says a lot about a person when they have so little trust and faith in themself that they pitch via roundabout BS.
  
  "I focus on working directly with property owners by becoming their last tenant — basically combining the role of tenant and property manager into one. It’s helped owners cut down on turnover, repairs, and vacancy costs."
  1 Reply
- James Wise
  Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
  1y
  Quote from @James Hamling:
  
  Quote from @JD Martin:
  
  Well, this post sounds like the beginning of every other advertisement on Youtube these days. But on the off chance that it's not an advertisement, and you're really wondering how to avoid thousands of dollars worth of losses on tenants - screen well, keep rents at or slightly below market rates, maintain and repair your properties promptly as needed, be a responsive landlord, and don't deal in C and below properties and you're probably as close to guaranteed as you can be.
  "...this post sounds like the beginning of every other advertisement..."
  
  Because it is. Judging by his other posts (below), it's yet another click-bait post....
  
  Says a lot about a person when they have so little trust and faith in themself that they pitch via roundabout BS.
  
  "I focus on working directly with property owners by becoming their last tenant — basically combining the role of tenant and property manager into one. It’s helped owners cut down on turnover, repairs, and vacancy costs."
  
  Ewwwwwwwwwwww Gross. He's a subleaser. That's almost lower than Sub2 investors lol. Boooooooooooooooooooooooooooooooooo this man.
  1 Reply
- James Wise
  Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
  1y
  Quote from @James Wise:
  
  Quote from @James Hamling:
  
  Quote from @JD Martin:
  
  Well, this post sounds like the beginning of every other advertisement on Youtube these days. But on the off chance that it's not an advertisement, and you're really wondering how to avoid thousands of dollars worth of losses on tenants - screen well, keep rents at or slightly below market rates, maintain and repair your properties promptly as needed, be a responsive landlord, and don't deal in C and below properties and you're probably as close to guaranteed as you can be.
  "...this post sounds like the beginning of every other advertisement..."
  
  Because it is. Judging by his other posts (below), it's yet another click-bait post....
  
  Says a lot about a person when they have so little trust and faith in themself that they pitch via roundabout BS.
  
  "I focus on working directly with property owners by becoming their last tenant — basically combining the role of tenant and property manager into one. It’s helped owners cut down on turnover, repairs, and vacancy costs."
  
  Ewwwwwwwwwwww Gross. He's a subleaser. That's almost lower than Sub2 investors lol. Boooooooooooooooooooooooooooooooooo this man.
  
  0 Reply
Wesley W.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
1y
Very pitchy. What are you trying to sell us?
6 Reply
David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
1y
We have had several tenants stay over 30 years, and average 12.5 years of tenancy. WE ask on our application How long have you stayed at your current residence? We also ask in the interview, "If we rent to you, how long would you plan to stay?" We look for tenants who have stayed a long time and obviously don't like to move. We look for families who have kids in the school and are looking to keep their kids, or start their kids in the local schools. We had a tenant who worked in Washington DC and another who worked in Baltimore, Md, who lived in our Pennsylvania rentals, just so their kids could go to the local schools, which are highly rated. We primarily rent single family detached houses in neighborhoods with good schools, low crime and mostly owner occupied neighborhoods. In some cases, we have the only rentals on the street, and the tenants stay so long the neighbors think they own the place.
7 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
I think it depends on where you are. I have rentals in an area with rent caps, so a vacancy allows me to increase the rent to market value. Having said that, the vacancy rate in the area is almost 0, so aside from an eviction where we had lots of repairs and clean up to do, we are often able to get new tenants moving in right after the previous ones move out.
2 Reply
Amber Stout
Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 379 posts · 152 votes
1y
Hey Zeth. We’ve lean into longer term relationships with tenants too—lots of screening upfront with clear communication upfront, renewal incentives, and small appreciation gestures throughout the year go a long way in reducing turnover.

Also started structuring leases with possible small rent bumps built in and options to renew early. If someone’s solid, I’d rather keep them happy than roll the dice on a new tenant every year (and deal with two months of no rent + repairs like you mentioned).

We also send $25-$50 gift cards during some holidays just to keep it more "humanly" than business. We typically have tenants that stay for years as we try to treat them like humans.

Totally agree—it’s not about avoiding turnover, but designing the business in a way that makes it the exception, not the rule.
2 Reply
Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
1y
I don't think it is even about avoiding turnover. It's about avoiding the expensive turnover costs.
We have been able to manage very short vacancies where the tenant left the unit in great or even good condition. It used to be the outlier that there was a turnover that cost thousands of dollars, now it feels like the norm. When we do maintenance inspections, we know right away which tenants will be costing us money or not.
Better screening, better relationships, setting expectations about what it takes to get the deposit back, better overall engagement, but it comes down to... does the population have the time, money, and skill to take good care of a unit, and do they understand the connection to the lack of affordable housing when they stop paying and stop caring. Society doesn't see the turnover as a cost that contributes to broken housing options.
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3 Reply
Eric Gerakos
Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
1y
If you're experiencing "Two months with no rent" you're not buying where people actually want to live, you're buying where its cheap.
8 Reply
Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
1y
When I first started, I thought I would want tenants who would stay as long as possible. Now I really like to turn over every 3-7 years. This lets us keep rates at top market prices keep our places updated and in better repair. It avoids problems with those long term tenants that start acting proprietary about the property and 'bitter renters' that are mad because they really wanted to own but couldn't get financed and they feel like they have an ownership interest in our property because they paid off the mortgage. (nope and nope). Once we have updated a property, we can often complete turnovers in just a couple of days with the required notice and good planning.
7 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
1y
I just had a vacancy and filled it within hours. Literally 55 replies to the listing in one day. The solution is to only buy in good locations.
11 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
1y
Great properties and good locations.
After I started to realize this about 10 years ago we did a portfolio-purge and exchanged all properties that were at elevated risk of higher turnover, unpaid rent and damages.
I often get questioned about our approach to finish basements and add a bathroom, because we don't get much higher rents for adding these features. But an average turnover costs us about 5k, so that is where the ROI happens.
Pro tip to finish basements:
LVP makes a basement sound like a parking garage and can trap water underneath. Carpet with pad sounds much better, but the pad does not do well with water. We have started to use 24x24 indoor outdoor carpet tile in dark grey. They are designed to get wet and then dry.
And instead of drywall, we spray the ceiling in a flat charcoal grey, including all the pipes, cords and ducts. Cheaper and more headroom.
4 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
for me its simple 700 fico or better.. that seems to be the ticket and on move out its just a heavy cleaning by the housekeeper type service..
If your doing section 8 or C class or lower even B class your just going to have 2 to 4k turnovers it just is what it is.. used to be 1k turnovers but things have gone up.
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
1y
Vacancies within a few years crush profits. I look for lifers and want people who will stay for at least a decade. I keep them in well under market rent and treat them well. I look at my tenants as if they’re my partners. I take care of them and they’ll pay off my mortgages and pay me good monthly cashflow.
2 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
1y
Quote from @Zeth Daniel Vanegas:

I’ve been thinking about this a lot lately:
If a tenant moving out destroys our cash flow, why is that considered “normal?”
Isn’t that a broken system?

Two months of no rent.
Thousands in repairs.
Weeks spent finding someone new.
And we just call it part of the business?

What if there was a way to set up your lease—and your tenant relationship—so that you didn’t have to restart the clock every year?
I'm realizing it's not about avoiding turnover completely...
It’s about choosing tenants and agreements that make turnovers rare (or even unnecessary).

Curious if anyone else has made changes like this?
Would love to hear what’s worked for you.

Has nothing to do with your lease and your tenant relationship. If you have cheap houses you'll get low quality tenants, and low quality tenants will jack up the houses. If you buy ghetto properties this is how it's gonna go. If you buy high end properties, it won't go this way. It's really very simple, but investors seem to be overly confused by this.
3 Reply
Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 666 votes
1y
Hello @Zeth Daniel Vanegas, I spent many years (over 35) managing my own investments and those of others. It is important before even purchasing a property to include the cost of tenant turnovers. It certainly cash flow, vacancy rates, operating costs, and overall returns. Minimizing turnovers by using long-term leasing, and an efficient turnover maintenance crew helps immensely. The other arrangement that can alleviate this is to use a beneficial lease purchase arrangement. I sold all of my personal investments and now only invest in passive investments with our co-investing club. I have dealt too long with the aggravation of hands on management. Good luck in whatever you do!
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Mark F.Pro Member
Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 678 votes
1y
Quote from @Zeth Daniel Vanegas:

I’ve been thinking about this a lot lately:
If a tenant moving out destroys our cash flow, why is that considered “normal?”
Isn’t that a broken system?

Two months of no rent.
Thousands in repairs.
Weeks spent finding someone new.
And we just call it part of the business?

What if there was a way to set up your lease—and your tenant relationship—so that you didn’t have to restart the clock every year?
I'm realizing it's not about avoiding turnover completely...
It’s about choosing tenants and agreements that make turnovers rare (or even unnecessary).

Curious if anyone else has made changes like this?
Would love to hear what’s worked for you.

Dude just shoot your shot already. Your profile reads like a YouTube ad. Anytime any person starts off a video or types the phrase “what if there’s a way…” we know a pitch is coming.
2 Reply
Gerry Chacon
Property Manager · Miami, FL · Member since 2025 · 17 posts · 3 votes
1y
Honestly, I don’t think turnover should be that big of a deal.

You usually know 60 or even 90 days before lease expiration if a tenant’s not planning to renew, which gives you time to start marketing. And if the security deposit is set up properly, most repairs shouldn’t be a major hit.

It’s all about having solid systems and staying ahead of things
0 Reply
Account Closed
Member since 2025 · 72 posts · 45 votes
1y
@James Wise Everyone wants to be so professional that they can't just be realists and call it how it is. What you said is basic common sense! As someone with plenty of years dealing with property management turnovers this is the biggest thing that boggles me. Sure, the rental income projections looks good on paper but do you even know WHERE you are buying? Many OOS investors will buy the cheapest house in the worst area of town because on paper it cash flows... Then a few years later they are frantically trying to sell because they can't afford turnover costs when they get tenants that constantly trash the place and of course can't pay for the damages.
0 Reply
- James Wise
  Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
  1y
  Quote from @Account Closed:
  
  @James Wise Everyone wants to be so professional that they can't just be realists and call it how it is. What you said is basic common sense! As someone with plenty of years dealing with property management turnovers this is the biggest thing that boggles me. Sure, the rental income projections looks good on paper but do you even know WHERE you are buying? Many OOS investors will buy the cheapest house in the worst area of town because on paper it cash flows... Then a few years later they are frantically trying to sell because they can't afford turnover costs when they get tenants that constantly trash the place and of course can't pay for the damages.
  
  Yup. Tale as old as time.
  1 Reply
C Rutherford
Member since 2020 · 22 posts · 12 votes
1y
>>>>don't deal in C and below properties>>>>

I am very interested in this.
First, what is a C and below property?
Second, in my city having rentals in the desireable neighborhoods costs twice the amount of property taxes a year or more. And correspondingly, higher property insurance rates too which go by property value.
That's thousands more you need to come up with in rent annually, and that much more pressure during vacancies.
Are the tenants really that much better?

Provided where you rent is low crime, I'm not seeing how a more desireable neighborhood, provided everything else the same, would translate into longer staying tenants. My vacancies usually happen over things like abandonment after losing their job, having medical issues, wanting to move in with a new boyfriend, giving Pay or Quit notices for not paying rent.... and so forth.
I'm not saying your wrong, but is there any evidence that if I tried to get in a Class B or A neighborhood, paid all that money, and all that more in taxes..... that things would be that different as far as tenant behavior. What are the reasons.

0 Reply
C Rutherford
Member since 2020 · 22 posts · 12 votes
1y
Assuming I am in a Class C neighborhood. I don't know.
When I was getting into this initially, I almost got a duplex in a class "B" neighborhood instead. However I have checked the property taxes on it recently and they are more than twice as much as what I'm being charged. Also compared to the duplex I bought, for the same price: Unlike the class B which had no garage, it has a double garage, which I can rent out the other side, and gives much needed storage for maintenance supplies. It has a full yard, which is a nice selling point. It has basement access without having to go through the tenant apartment, that is huge from a management standpoint to get to the utilties. The Class B duplex also had foundation issues. I was going to hire someone to address it, which would be costly- but still there was that extra expense.

But most of all, the Class B duplex I turned down, had someone in it who wasn't paying rent. For how long, I don't know. The owner selling was a doctor, who was probably selling for that reason, he did not want to kick her out. But he had the money to house a squatter indefinitely if need be I'm sure. I do not.

I tried requiring he move her to another one of his own apartments before buying. He would not. So I abandoned the sale.
It would have been nice to be in a Class B neighborhood I'm sure. But where would I be now, had I gone with that duplex?

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