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Property 5 Re-rented

April 23, 2011

So now that I have Property 2 rented, I will take this chance to go back and post about the vacancy I had in January/February.  Property 5 became vacant unexpectedly just like Property 2.  This one was due to a restaurant failure. My tenants owned and operated a Chinese buffet.  Well, I learned that lesson the hard way. Restaurants are too tough – they never had a chance with a Whataburger and a KFC in the same shopping center. Entrepreneurs are great – this is what America is all about, but startup entreprenuers don’t make good tenants.  If they fail they move out and if they succeed they will buy their own place.  I really only rented to them as they wanted to move in on the 20th of the month versus the first for my other candidates.  So for 10 days rent, I went with the restaurant owners.  Huge mistake – seems so obvious now – but I somehow talked myself into them at the time.

While the vacancy in Property 2 went really smooth, this one was a nightmare.  First they moved out with no notice on Jan 20 – Just my favorite time of year for a vacancy.  It was the middle of winter and we actually got a couple of snow storms and a week of single digit temps in Dallas.  Despite my precautions, I had a plumbing issue.  Water destroyed about 600 square feet of carpet and damaged one wall.  Then, I got screwed by a fraudulent water extraction company.  Fought them off and effectively had to prepare this house twice for my next tenants.

Total cost of this rehab was almost $3,500.

This whole experience was a real beating – just one of those really down periods as a landlord.  It was not all bad. I did recover a check from my insurance company for about $2,500.  I kept their $750 deposit and I am still working with my insurance company on a lost rent claim.  Despite the winter weather and the January vacancy, I received 75 calls on the house.  Total vacancy time was 28 days.  The education was probably the real value here.

I have a good feeling about my new tenants. They are doing great so far.

From → Landlord

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