Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
So I've heard on this forum once before that many Landlords will have a vacant rental for 1 month after the former tenants move out so that they can clean and show the place for the next prospective tenants. My duplex rental is on it's 3rd lease of tenants and so far I haven't had that gap, but it has come to my attention that if you continue to practice your business this way eventually you'll create a problem where the current tenants overstay their lease or you don't have time to adequately clean and repair your unit between renters.
So the next question is if you do indeed have a month's gap between tenants, then how are you dealing with year leases where every year you jump a month. For example if your previous lease was a year and started in July, the next year the year lease would start in August and so on. So eventually you'll be trying to find a tenant November or December when the number of potential renters is of lowest demand.
So what is the proper way to transistion from one tenant to another in a years lease?
make the lease whatever it takes to get turnover back to a month of high traffic. perhaps a 6 or a 13 or 14 or 18 month lease. Get back in sync with the traffic time.
@Marcus Johnson I leave two days between one lease ending and another beginning. I don't worry that someone will hold over. I'm usually in frequent contact with them during their last few weeks, and I'm pretty confident that they are going when they say they will. It's possible that could happen, but a month wouldn't do me any good either. It takes just a little over a month to evict, so I still wouldn't have the time to get the next tenant in on time.
I can almost always show the home while my previous tenant is in it. Some are cleaner than others, but I haven't had many who were total slobs/turn offs.
Your question is valid. I had tenants move out who did not clean at all and new tenants lined up to move in. There was no damage, it was just very dirty. Good thing I had a deposit! I told the new tenants that I could either pay for a professional cleaner or pay them to clean. They were happy to get the money since they had just spent all theirs on rent and deposit and I knew it would be cleaned to their satisfaction. The money came out of the first tenant's deposit and everybody was happy.
I have asked area property managers how they handle this situation and they said they do basically the same thing.
@Marcus Johnson I leave two days between one lease ending and another beginning. I don't worry that someone will hold over. I'm usually in frequent contact with them during their last few weeks, and I'm pretty confident that they are going when they say they will. It's possible that could happen, but a month wouldn't do me any good either. It takes just a little over a month to evict, so I still wouldn't have the time to get the next tenant in on time.
I can almost always show the home while my previous tenant is in it. Some are cleaner than others, but I haven't had many who were total slobs/turn offs.
Finally someone who answered the question I asked? LOL I was was just wondering what legal implications could result if a tenant stayed to long and you've already singed new tenants. Your the only one who answered this question.
You either need to hire a property manager or not be so emotionally tied to what tenants do or don't do.
Tenants are unpredictable.
Go get another 20 units or so and you'll understand that what you're dealing with isn't a real problem....its completely normal.
I've had tenants move out without telling me that I've been in frequent contact with up to the day they moved out.
It's a business...just set the emotions aside and get the unit in rentable shape ASAP and focus on what makes you money. Finding more deals.
To answer your question though...don't sign the new lease until the unit is ready.
No problem, everyone has their own opinion. But to answer yours, I don't have emotions tied into what tenants do. I was very business like when bad tenant decided he needed more time to leave. He even called the cops saying I was threatening to make him leave, when he signed the lease to leave and do a final inspection on the property. The cops laughed and said I'm doing nothing wrong and I should have brought an eviction notice. To answer your question regarding handing the keys over to a PM, I'd say no way. I'm learning so much and I want to make a successful business. So far this property has been very profitable. Thanks