All Forum Posts by: Account Closed

You obviously won't be able to control the big life changes that tenants face or even things like them outgrowing a property. But I think being a decent landlord goes a long way in keeping tenants around. I have several tenants that stick with me because the bar is so incredibly low for landlords in my area that just by providing a safe, clean, and maintained apartment, I'm doing better than most landlords and they all know it. 

I sometimes will make small preemptive improvements that keep me in good light with my tenants and, importantly, add value to the property for the next turnover. For example, if I come across some cheap cabinet pulls that are nicer than the current ones, I'll ask the tenants if I can come to install them. I would have done it on the next turnover anyway, but they'll feel looked after and appreciate the little things. 

Can I say for sure that they'll stay longer because of things like this? No. But I know they won't be trash talking me to the next landlord for being neglectful when it does come time to move. 

Thanks Ryan! Good tips for helping people to feel taken care of.

@Aleksandra Schultz

Great question. In my experience:

Rent longer no. Rent faster absolutely.

PS - Go Mundelein! My hometown.

Hi Aleksandra. In my market, going above what is typical in rehab will ABSOLUTELY reduce tenant turnover and will get you a better quality tenant, not to mention less problems along the way. I've always thought that this is something that doesn't get talked about enough. I can tell you that this has been my business model for the past 30 years and for the most part, I get excellent quality tenants who never want to move.

Guys, I have a technique I've mentioned before, but it bears repeating. Even in the least expensive places I rent out, I install shower towers with a raincan, a handshower, digital temperature readout, and massage/misting jets. Each one costs me about $200 through Home Depot. These towers bypass all behind-the-wall plumbing and can be easily replaced later on by similar models by non-plumbers, which is why I originally started doing this (my target area has a surfeit of old, non-pressure balance 3-handle shower valves that leak). The initial installation takes some time, but once I get it in, I get rave reviews for months afterwards. I'm convinced that offering this one amenity really changes things. Everybody like a nicer shower every morning.

@Aleksandra Schultz

Great question. We have had a good experience by putting in a slightly higher than average finish in improving our turnover.

When doing a full renovation there are only marginal differences in cost between cutting a new laminate counter top and cutting the lowest level granite one (difference of a few hundred dollars for a small kitchen) and 1) gives you an advantage against the competition and 2) tends to be longer lasting. There are also great hardwood lookalike laminate floor panels that are super durable and give an above average look.

You don’t need to be the best finish in town as there are certainly diminishing returns, but being better than average is a major advantage.

@Account Closed I think spending more will help you rent it faster but may not make much difference in how long a tenant stays.  How well you maintain your unit and how fast you respond does affect length of say.

As someone else said in this thread, no one will have definitive proof. Best you're going to get is a gut feeling. I have A/B units and wouldn't necessarily recommend the same for C/D units. My personal opinion is that spending a little more on nicer things will help you rent faster, may help retain tenants a little longer, and might also help encourage people to take a little better care of the place.

For the B units, I like to go for nicer things that don't cost a lot. Stainless steel appliances come off as higher end, but they don't really cost much more. If you need a refrigerator, make sure it has water/ice in the door. If replacing the toilets, go for the elongated ones. I had one tenant tell me this was a deciding factor over another unit. If putting in new flooring, go for the textures planks. Replace all the lightbulbs with LED bulbs. Use metal handles for the cabinets, not plastic. For light switch and power outlet plates, use the ones without screws showing. If the power outlets are yellowed, swap the out with fresh white ones. The local water/power company had a program to install Nest thermostats for free (also included servicing the HVAC, free Freon, filters, etc). I put them in my units more for the free servicing of the HVAC, but the tenants seem to love them. One of the first questions I was asked when showing a unit was if the Nest thermostat came with the unit or was the current tenant taking it with them. 

When all said and done, you may spend a couple of thousand more. Does any of this make a difference? Who knows, but I can say that my units rent fast. I just rented a unit in under two weeks while a near identical layout unit (with old appliances, carpet, round toilet, and plastic handles) in a sister building just across the street is still on the market and approaching 3 months vacant. My rent was 10% higher than theirs. They are already out over $6,000 in lost rent. I have a friend who owns a smaller unit in that building. He spent a few grand upgrading things, put it on the market, and had it rented in 2 days for several hundred more than before.

 Yes without a doubt. Beyond decreasing your turnovers it decreases the time your property sits vacant. The nicer & more modern the fixtures are usually increases the rent a bit but the decreases turnovers & vacancy time is the real price here. I see a lot of investors get caught up in their spreadsheets & only focus on the increase in the rent. Major mistake in my opinion. Think about it. Nobody like ugly outdated stuff. What that gets you is a tenant living in your unit because it was best available at the time, not something that they truly like. Get them something they truly like & they are more likely to stay longer. Pretty simple stuff when you step back & think about it.