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megjrg2009

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Posts: 5
Reply with quote  #1 
We are trying to find a new tenant for our condo. The current lease expires at the end of November so it would be ideal to get a new renter on December 1 so we don't lose money. As a landlord, what is the average loss one would take trying to re-rent a place? I assume, as a landlord, you take some kind of loss...maybe?

I am trying to figure out ways to incentive a prospective tenant to sign a lease for December 1 in the event they are on the fence. I figure any sort of deal we present is better than the entire loss of one month's mortgage.

What would be some good offers? So far I have: half month's rent for first month or decreasing rent by $25-$50 per month. We would love to get our asking price but with the 2 renters we have had over the last 2 years they have both talked us down $25-$50. So, if we do that again, as an incentive, we won't really be losing as that is what we were getting before...but at the same time we would be offering a deal.

Any other ideas? There are free amenities they get with their rent (that we pay for via Condo Fees), so offering free access to amenities or gym type incentives is not an option.

Thanks!
ahkenaten

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Posts: 156
Reply with quote  #2 
Never offer anything less than what your previous tenants were paying. If you're going to decrease anything, decrease the security deposit. That way you lose money once instead of every month. Average loss depends on the way each landlord does business. If done right, I lose half the amount of the security deposit on each turnover. Sometimes, if I'm lucky, I can profit from a turnover with higher rents. It all depends on the situation.
fasteviction

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Posts: 11
Reply with quote  #3 
I think you should sign a contract with new tenant
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Property owners can take the consultation of three day notice eviction to evict the defaulter tenants very easily.

NoNonsenseLandlord

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Posts: 178
Reply with quote  #4 
Offer a quality product, and a reasonable price.  If you show a place to more than 3 qualified tenants, you are priced to high, or under marketing.

NEVER lower the deposit.  You need that hurdle to weed out folks with no capital.  Maybe if they have a 750 credit score, and are lower risk.

Read this post and you will understand.

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Landlording for maximum profitability and Financial Independence

NoNonsenseLandlord

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Posts: 178
Reply with quote  #5 
Quote:
Originally Posted by ahkenaten
Never offer anything less than what your previous tenants were paying. If you're going to decrease anything, decrease the security deposit. That way you lose money once instead of every month. Average loss depends on the way each landlord does business. If done right, I lose half the amount of the security deposit on each turnover. Sometimes, if I'm lucky, I can profit from a turnover with higher rents. It all depends on the situation.



What if the market rate goes down?  What if the place is more worn out?

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Landlording for maximum profitability and Financial Independence

Number21

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Posts: 75
Reply with quote  #6 
Quote:
Originally Posted by ahkenaten
Never offer anything less than what your previous tenants were paying.

Rents go up and down. This is a frequent occurrence and is almost a law of physics. [rolleyes]

If you lose any money you're not doing it right. When you are making profit you should be putting some of that away so that you can handle a month or two of lost rent or unexpected repairs. There is no reason to lose money if you're charging market rates on a livable house.

Quote:
Originally Posted by NoNonsenseLandlord
If you show a place to more than 3 qualified tenants, you are priced to high, or under marketing.

This is such terrible advice, as usual. If the first or second person you show your property to takes it, you were not asking enough money. Period. Unless maybe you live in a town with a population of 50.

Selling a rental is no different than selling anything else. If it sells immediately then you could have asked for more. In terms of "landlording for maximum profitability" as you claim to do, this advice could not get any worse.

The same can be said about selling a home. If the first person that looks pays your full price, you weren't asking enough. Period.
NoNonsenseLandlord

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Posts: 178
Reply with quote  #7 
NUMBER21 => Tenant Troll.

When you actually own property, your suggestions would make more sense.  Until then, keep saving and maybe your advice will make more sense.

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Landlording for maximum profitability and Financial Independence

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