Longest tenant you’ve had?
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votesLongest tenant you’ve had?
Most Popular Reply
Investor · SEATTLE · Member since 2019 · 11 posts · 20 votes
6yHi, I have
a 13 year tenant, that is actually living in one of my units for the second time, she moved for 2 years then moved back.
a 15 year tenant
a 16 year tenant
a 17 year tenant
a 23 year tenant
and I had a 25 year tenant until she had to move
I'm all about keeping tenants for a long time , less turnover = less headaches = more $$$
So when it was time to raise the rent , annually, I figured my increase in costs and what the market would bear , and kind of split the difference, now when I did have a vacancy I went in and did as much as I could afford to do as far a remodeling and rented it at market rent.
That's what I did , for 42 years and counting (:
25 Replies
- Investor · SEATTLE · Member since 2019 · 11 posts · 20 votes6y
Hi, I have
a 13 year tenant, that is actually living in one of my units for the second time, she moved for 2 years then moved back.
a 15 year tenant
a 16 year tenant
a 17 year tenant
a 23 year tenant
and I had a 25 year tenant until she had to move
I'm all about keeping tenants for a long time , less turnover = less headaches = more $$$
So when it was time to raise the rent , annually, I figured my increase in costs and what the market would bear , and kind of split the difference, now when I did have a vacancy I went in and did as much as I could afford to do as far a remodeling and rented it at market rent.
That's what I did , for 42 years and counting (:
- Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes6y
@John Morgan 4 years and counting. Advice: a desirable property at market rate or slightly below should keep people in place unless there is a job change, move, life change, home purchase, etc. Who wants to move from a desirable property at a fair price to another similar property unless there is a major change? Moving is a pain!
- Wichita , KS · Member since 2017 · 35 posts · 25 votes6y
I’m a tenant, and I’ve been at my place a little over 14 years.
The first couple years I was there they raised the rent at lease renewal. Then they got a new office manager, who has (so far) kept the rent the same but has added a water surcharge that has gone up over time. I think they’re going to raise the rent on me fairly significantly (~10%) the next time the lease renews, which will sort of be a bitter pill to swallow, but had they raised the rent a little every year or two, I’d probably already be paying that amount or more, so I’ll probably get over it. Psychologically the big jump is worse than several smaller jumps.
A lot of the things that cause tenants to move will be out of your control (job change/loss, family growth/shrinkage, etc). One guy I know had tenants who needed to move (I forget the reason), but they asked if he had any other properties that were more suitable for them. In other words, they wanted to keep him as a landlord, just not at that property. So do right by your tenants.
- Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes6y
Originally posted by @Carl Fredrickson:
I’m a tenant, and I’ve been at my place a little over 14 years.
The first couple years I was there they raised the rent at lease renewal. Then they got a new office manager, who has (so far) kept the rent the same but has added a water surcharge that has gone up over time. I think they’re going to raise the rent on me fairly significantly (~10%) the next time the lease renews, which will sort of be a bitter pill to swallow, but had they raised the rent a little every year or two, I’d probably already be paying that amount or more, so I’ll probably get over it. Psychologically the big jump is worse than several smaller jumps.
A lot of the things that cause tenants to move will be out of your control (job change/loss, family growth/shrinkage, etc). One guy I know had tenants who needed to move (I forget the reason), but they asked if he had any other properties that were more suitable for them. In other words, they wanted to keep him as a landlord, just not at that property. So do right by your tenants.
A surprising number of self-managing landlords really never figure that out: in every tenant interaction you have, you're marketing yourself as a landlord. Down in the low C-class dumps, that's probably just as important as the overall condition of the properties you're renting. The right kind of long-term C-class tenants are looking for someone they feel they can trust to take care of their problems as they arise. It's always the wrong kind that want as little to do with you and to know as little about you as possible right from the start.
- Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes6y
I disagree with many people that say "turnover is the worst". Well, it depends. You want to keep rents under market value for 5, 10, 20 years?! Wow, the money that you just gave away because you were afraid of a 1 month vacancy. If you have a good tenant, AND they pay market rent (or very close to it), then by all means, you've done great. But, there are lots of great tenants out there willing to pay market rate rent.
So, my answer? 4 years. Most of my tenants that move out are either relocating and leaving the area, or they are buying houses. I had three tenants move out in June. All 3 bought houses. And I raised the rent on all 3 vacancies, and received 3 quality tenants very quickly.
So, for those that are boasting about super long term tenants, I very much want to hear how far under market rents did you accept, and for how long? Let's see some math here, and then determine if the best thing on earth is just "long term tenants".
- Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes6y
Originally posted by @Anthony Wick:
I disagree with many people that say "turnover is the worst". Well, it depends. You want to keep rents under market value for 5, 10, 20 years?! Wow, the money that you just gave away because you were afraid of a 1 month vacancy. If you have a good tenant, AND they pay market rent (or very close to it), then by all means, you've done great. But, there are lots of great tenants out there willing to pay market rate rent.
So, my answer? 4 years. Most of my tenants that move out are either relocating and leaving the area, or they are buying houses. I had three tenants move out in June. All 3 bought houses. And I raised the rent on all 3 vacancies, and received 3 quality tenants very quickly.
So, for those that are boasting about super long term tenants, I very much want to hear how far under market rents did you accept, and for how long? Let's see some math here, and then determine if the best thing on earth is just "long term tenants".
I'd love to have this discussion publicly with you, Anthony. I think I have both something to share and something to learn. But let's make sure we're talking apples to apples here. As I've repeated numerous times here in the forums, I rent out low C-class single-family houses in and just outside Pgh.
My favorite tenant for this discussion pays $675 month on a 2/1 half-duplex property I bought for $25K and put $2K into before I rented it. I don't have hard numbers for NOI with me right now but I'll post them later.
So is this the kind of concrete tenant situation you believe I should keep the rent at "full market rate" for?
- Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes6y
Our longest tenant was with us for 18 years, actually lived there before we bought it as well, and while it was a win-win -- house paid off with a little cash flow over the years and she got a great value -- it taught us to keep all our others closer to market. Afterwards, we renovated and doubled the rent, so a lot of cash flow missing over the years, although I would never have made her move.
Our longest currently active one is going on 10 years, but we do raise the rent every 2 years or so, although it's still slightly under current market as it initially rented to them during the great recession so started lower than normal. The units that turnover more frequently rent at current market, so there is a benefit to turnovers as long as there isn't too much work involved, but I prefer long-term tenants at slightly under-market rent.
- Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes6y
Another mention-
I agree with what @Anthony Wick said. One of my clients has an almost 6 year tenant in now but will be out in the next month. He’s currently paying $985 (was $925), once he’s out and I fix it up a bit it will be gone in days for $1275.
- Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes6y
@Matt M.
That’s crazy. I actually bought a house a couple years ago that sounds very similar to yours. The tenant was sec 8 paying only $600/mo and had been there for 15 years without an increase in rent. I rehabbed it and now get $1400/mo. But had to get her out. Housing said they would only give her a voucher for $800.
- 6yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
I think 14 years, then I sold or they would have stayed. They had lived in the area before and didn't want to move.
My other rentals are newer (5 years). One I had for 5 years and counting with the same tenant. Other one I bought at the same time 4.5 years...then she got evicted. It really depends on the person as much as the place. The one I evicted, I learned a lot from, pretty sure she got into drugs or something around the time the problems started. The plus side is I increased the rent (it is in an area where there are caps on increases) at turnover...of course then covid hit and the new tenant has become a problem the last few weeks (aside from constantly late rent). This is the one case where it is the tenant-she's not willing to work with us to come up with a payment plan for July and is being well challenging and bring back memories of the one we evicted.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes6y
I've purchased or managed property with renters that had been in the unit for up to 30 years. In most cases, they were significantly below market rent but the Owner saved a ton of money on vacancies and renovations. You'd have to do the math on each one to see if it's the "best" strategy, but you have to consider the other benefits like not having to worry about rent payments, low maintenance requests, no complaints, etc.
Currently, my longest renter has lived in the same apartment for 25 years. He moved in with a new washer/dryer but there were no hookups and he intended to sell them. They are still sitting in his spare bedroom. I don't think he's swept or mopped or dusted for the entire time he's lived there. I have a post somewhere showing it is the filthiest rental I've ever seen, but he pays market rent, is never late, and will probably stay there till he dies.
The DIY Landlord Book4.7248 Reviews - 6yJulie MarquezPro MemberInvestor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
@John Morgan We have a family going on 20 years, and they pay market rate rent and they are okay tenants. I don't actually wish they have stayed so long. There place is musty and dank and probably some terrible moisture and water damage in the walls. I'm not looking forward to the turnover either
- Investor · SEATTLE · Member since 2019 · 11 posts · 20 votes6y
To Anthony, and John
First of all start with the basics , LOCATION, LOCATION, LOCATION (mine is a hot area of Seattle called Ballard )
Second, like others have said on here we landlords are in the "Public Relations Business" every interaction with your tenants is crucial. If they call at 10PM on a Friday night with water problems .....and you knock on there door at 11pm on a Friday night , they will appreciate you . If you say " I can't get a guy out there till Tuesday , live with it " They will remember it ! Some landlords actually ignore calls , watch out Karma is out there .
Like I said when I have a vacancy I check market rents , with all the rental sites it's pretty easy, for us , and for the perspective tenants. I just had a vacancy as a matter of fact, June 30th , and filled it today, July 23rd. The unit was vacant for less than a month, while I put in all new flooring, a top on the line vinyl planking (looks like hardwood) , a complete paintjob , including Kit and Bath and replaced the base in the unit. And with this covid thing , vacancy rates are rising, so I went in pretty cheap, only $40 more per month than before. The reason I did that was because I watch the comps on Zillow / Craigslist and Apartments.com and 2 months ago my daughter moved to an area close to my apartments. So I had been watching my market for 3 months, every day. And I was seeing 1br units still on the market after 60 days, and some longer !!! and this is a very desirable area of Seattle . How long does it take to make up a missed month's rent ?? just because I want to hold out for another $20 - $40 per month ? At $1395 vs $1450 a month , it takes a long time to make up for that $55 you MAY get , 23 months ! That is almost 2 years !! and by then I've raised the rent and am closer to market.
But hey when it comes time to sell that all goes out the window. You want your rents as high as you can get them. So have all your accounting records ready to go a year before you want to sell, go get a loan , and make that gem shine !!!
- Investor · SEATTLE · Member since 2019 · 11 posts · 20 votes6y
Woops , It was late , I meant to say we are in the " Customer Service Business" not public relations
- Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes6y
We have been in business 4 years, and our longest tenant is our first tenant - 4 years in a duplex, but the neighbor lived there 10 years before, so 14?
Be a good landlord, fix things quickly and most people won't leave. Worried about vacancy-- treat your tenants great, and provide a great rental--easy as that.
We like to be slightly below market value, because no one moves to pay more in rent for the same thing! You're either at or at/above market and the vacancy/cost gets paid because you're charging more, or you're cheaper and you won't have as much vacancy, it's pretty much the same math. Just pick one and go with it, nothing wrong with either IMO!
- Property Manager · Dallas, TX · Member since 2020 · 109 posts · 79 votes6y
@John Morgan I have a client who has had a tenant for 20 years and another for 15. Impressive! But the 20 year tenant just moved put and we had go do avout a complete refurb on the interior of the house. The tenant had dogs running the place...
- Rental Property Investor · Everett, WA · Member since 2015 · 457 posts · 386 votes6y
@John Morgan Our current longest tenant is one we inherited from a previous owner at 18 years. We have kept his rent close to market value. He's a great tenant and it's worth having someone onsite keeping an eye on the property and neighborhood.
Across the rest of our portfolio, we have a lot of tenants that stay with us for multiple years. The key is to ensure you are keeping their rent close to the market value. If you fail to do this, you are basically trapping them in your unit as they will be unable to move if and when they need to.
John
- Real Estate Agent · Allentown, PA · Member since 2016 · 70 posts · 86 votes6y
My first ever tenant (in a 2 unit house hack) was my tenant for about 10 years, he lived there many years prior to me buying it as well. I barely ever raised his rent, a few times I paid for supplies or helped him with an improvement he wanted to make. He moved when he bought a house and his best friend ended up moving into his apartment, and I’m going on 4ish years with them. I’m super grateful to this tenant for so many reasons.
- Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes6y
@Jim K.. I wish we lived close by so we could grab a drink and pontificate about our strategies! It's a very good discussion. Like many real estate discussions, the answer "it depends" often arises. In your situation with low Class C properties, just below market rate rent might work out for you. Now, you'd have to give real numbers for us to decide. Is $100 below market rate a good idea? I don't think so. That is $1,200 a year, $6k over five years, and $12k over 10 years. That seems like a terrible loss of income to me. But, is $25 below market rate rent a good plan for you, so your "good" tenant doesn't move? Probably. I just don't subscribe to the theory of "long term tenants are always good and vacancies are always bad" theory that many espouse here on BP.
Just for the record, and I hope I've been very clear on BP in the past.....everybody needs to do what they feel is good for their business. And for some, not maximizing rents and income is what they feel is good for many reasons (less work, goodness of their heart, they simply don't care about maximizing profits, etc). It's kind of like the age old argument of "should I pay off my rental or not".
- Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes6y
Here's my most recent story/purchase....
I bought a duplex wherein the owner was getting $1,100 per side rents. As part of the purchase agreement I told him one tenant had to be evicted/moved out, and the other tenant that was on a MTM lease cannot sign a new lease before close. I made the problem tenant the sellers problem and didn't inherit that problem, and it was well known to the other side I was going to raise rent. That tenant decided to move as well, and I purchased the duplex empty. No problems by me on that.
I did some minor upgrades to the duplex after close to the tune of about $4,000. Just some cosmetics, but also sweat equity that didn't cost us any actual dollars. I'm no professional, but I like to give a place a fresh coat of paint at minimal cost. I now have the duplex rented for $1,430 and $1,480 (pet). An extra $710 per month, $8,520 per year, $42,600 over 5 years. Now, did it take a few weeks worth of work? It sure did. Will any turnover take some work? It sure will.
This isn't exactly the same scenario as "long term tenants" talk, but it is a concrete example of revenues lost by the prior owner, all because he didn't want to raise rents, do the work to get new tenants, or possibly have a month of vacancy.
- Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes6y
33 years until she passed away. Single lady. - My moms tenant, not mine- never a day of unearned rent, and only painted for her once in all that time.
- 6yWill GastonPro MemberRental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
Inherited two tenants at one triplex and each had been there for 5 years already when I bought it. They each stayed the 12 years I owned it.
Those are the kids of tenants landlords dream of.
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