Tenant turnovers are the most expensive part of owning rental properties. There’s a lot that goes on between the time that tenants leave rental properties and the time new tenants are placed in them, and you don’t get paid for the entire time!

Watch this video to learn more about tenant turnovers, why they are the most expensive part of owning rental properties, and how you can become a better landlord to avoid frequent turnovers!

Key Talking Points of the Episode

[00:00] Introduction
[00:28] What is the most expensive part of owning rental properties?
[01:07] Why do turnovers cost so much?
[02:36] How do you prepare for turnovers?
[03:53] Screen your tenants properly
[05:22] Communicate and set proper expectations
[06:35] Treat tenants with respect
[07:34] Do what you’re supposed to do
[08:39] Offer incentives for tenants
[09:34] Long-term thinking
[10:42] Learning a more tactical way to get involved in rental properties

Quotables

“You may or may not know it, but turnover when a tenant leaves your property and you have to get a new tenant in place is by far the most expensive part in owning a rental property.”

“If a tenant moves out at the end of the month, it is extremely unlikely or impossible to have a new tenant move in the very next day.”

“It takes time to get applications, make sure the property is cleaned up, passed any inspections, and ready to go.”

“If you can limit the times that people are moving out of your properties, you can limit those $2000-$4000 hits.”

“From my experience, I bet that you can double or triple your cash flow in a decade on one property by not having tenants move that much.”

“Most landlords don’t spend a ton of time approving tenants. If a tenant meets this criteria on income and their credit score is decent, they approve them and that’s usually when you run into issues.”

“There are a lot of really good tenants. There’s more good tenants than good landlords out there, but you have to do a little more time upfront to find the right tenant for you and the right tenant for your property.”

“I can’t tell you how many times I’ve seen other property management companies, their processes, and they simply meet at the property and get the lease signed, and they leave after 5 minutes.”

“We set the expectations as we’re talking with the tenants through the approval process. Once they’re approved, we meet them at their current property they’re living in to see how they are actually taking care of that property, and it kinda allows us to see how they’re living.”

“We will do our part and we please, hope, and ask that you do your own part. If not, then this just turns into a messy situation for both of us.”

“We respect them and obviously, if we need to do certain things, we will, but that’s the worst case scenario.”

“We treat them with respect and for the most part, they do the same because they’re kinda used to the rhetoric out there “landlords vs tenants”, landlords are evil kinda thing that’s overplayed, but it’s kinda accurate.”

“It’s kinda funny but when we do what we say what we’re gonna do, the tenant tends to do what they say they’re gonna do more often than not.”

“We will contact them 3 months before the lease is expiring and we will offer them gift cards to incentivize them to stay.”

“I think our average tenant stays over 4 years and we’re hoping to get better at that. Our portfolio is only 7 years old so we’re getting better and we will continue to get better.”

“This may sound simple, but it’s not easy. All of those things I just talked about take time, effort, and energy. It’s kind of more of that long-term thinking.”

“If you’re a good landlord, you’ve built a great reputation, and have a beautiful home, you will start to attract the best tenants.”

“It’s not easy, but it is simple and it just takes a little bit of extra work, but it makes a lot of difference.”
__________________________________
Free Rental Training :
How to start building and amazing rental portfolio without using and of your own money!
Also, info on my mentorship! - Perfect for Leveling Up
https://www.freerentalwebinar.com

Real Estate 101:
Everything you need to get started in Real Estate Investing - Perfect for Beginners!
https://www.fasterfreedom.com/RER

Follow us!
Instagram - https://www.instagram.com/samfasterfreedom/
TikTok - https://www.tiktok.com/@samfasterfreedom
Join our amazing Facebook Group as well- https://www.facebook.com/groups/fasterfreedomcommunity

Trusted Resources:
DealMachine App- (Driving for Dollars!!) FREE TRIAL!!
https://www.dealmachine.com/fasterfreedom
Promo Code- FASTERFREEDOM

Batch Leads- Run Comps, CRM, Home Data Create List and More FREE TRIAL!
https://www.batchleads.io?deal=fasterfreedom

#realestateinvesting #rentalpropertyinvesting #realestate