This is the time of year when as landlords, we keep our fingers crossed.
How many tenants will be moving?
What will our schedule be like for the next two months?
Will it be as hectic as the last few years?
Pleasantly, it’s a schedule we are able to handle, while knocking on wood. In May and June, we could get as many as nine calls that tenants will be moving out. That means we’d have to go in, clean up, fix up and re-rent. That is a lot of work.
However, from all indications, this year will be different.
Let me explain.
We only have four units coming empty during June. That’s very unusual for us.
During the boom years of the last market cycle we had tenants leaving us right and left to buy houses. People we thought couldn’t swing a house payment, got mortgages. We even had one Section 8 couple who didn’t pay the rent on time- move out and buy their own slice of the American Dream.
But all that’s changed now. No one is buying that we know of. If our tenants are moving, it’s for the usual reasons- that they’re leaving town or finishing school.
So what’s my point?
It’s this. Sure being a landlord is work. But there’s work involved in anything you do that’s worthwhile. But once the initial work is done, and you get qualified tenants in your units who will pay on time, it’s really not that bad. You have streams of income coming from different properties every month like clock work.
Should your luck run out, and you get a bad tenant who doesn’t pay the rent, or drives you crazy, get them out. Often you can offer to let them out of their lease or even buy them out. It’s amazing what a few hundred dollars will do for some people. Get those tenants out, rinse and repeat- but this time find a tenant who will pay the rent on schedule.
Oh, yes, I forgot the most important thing. We’re going up on the rents. This market cycle is allowing us to do that. Sometimes in a "good market" you can’t because there is too much competition.