Most New Investors Underestimate Property Turnover Costs.

[R. Elle Berry]

Most new investors underestimate turnover costs.

Everyone talks about buying the property, collecting rent and cashflow but few people talk about what happens when a tenant moves out. And that’s where reality hits a lot of investors. No one discusses vacancy time, the utility bills while the unit sits empty. The maintenance issues the tenant never reported, contractors delaying projects, marketing costs, paying lease commissions, inspection costs or carrying the mortgage while no rent is coming in. Let’s discuss these major concerns.

What’s been your most expensive turnover expense so far? And how did you handle the situation?

[Drew Sygit]

This is why renewing a lease is MORE important than how much any increase is.

A landlord should increase rent a minimum of every two years though (unless local market rents are dropping).