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2013 Vacancy Report Card

December 23, 2013

We finally did it. We had 100% occupancy this year. It was great and I don’t miss the time commitment of a ‘make ready’ at all. We did spend more than usual on repairs and maintenance and did a few minor upgrades here and there. I also had to do some talking to get one of my tenants to stay. I was successful and they will re-evaluate this Spring. Hopefully they will just stay.

Our little Class C properties are the ones that always seem to be turning over for me. I think it is just where people are in life that live in these $800 per month properties. They have hourly jobs and just move around quite a bit. These 2 properties are smaller starter homes and attract the younger couples. I collected over $200 in late payments from these properties this year. More than I would like, I would much rather have the steady payer and go without the late payments. Still these are the most profitable properties we have despite being the most work.

In the chart below, I have added another column this year showing the length of stay of our current tenants. For those that read my blog regularly know my thoughts around vacancies. I avoid them as much as possible. If I just maintained rentals full time, then I would not go to the lengths that I do to keep tenants and might be quicker to move onto the next one. However, with both of us working full-time day jobs – keeping them occupied is our #1 priority.

Vacancy report 2013 

Our primary strategies are heavy tenant screening and below market rents. Not by much, but below the average of the neighborhood. Secondly, we keep the condition of our properties slightly above average. There is no granite in any of our properties, but they are certainly above some of the trash that is out there. The combo of cheap rent and condition really creates a bargain in our tenants mind. Thirdly, we self-manage. I think this personal touch goes a long way and does set us apart from those that use property managers.

To say we are happy with these vacancy numbers is an understatement – we are ecstatic. Hopefully we can keep the streak going, but I doubt 2014 will be so kind.

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From → Landlord

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