and rented 9 of thirteen empty rentals this weekend. This will bring in 6450 this next month and the money will be welcome.
We have tried to always rent with first, last,and deposit but every month we had empties…
To fill up these units we had to try new things. A typical 2/2 on it’s own small lot typically rents for $650 per month…we reduced to $595. A typical 3/2 doublewide on it’s own land is typically 850-950 per month, we reduced to $750 -850. Typically, we ask for 500 deposit, on 5 of these rentals we accepted 1/2 now and 1/2 in 30 days. We abolished last month rent on all we rented.
Sound kind of draconian? Had $10,040 that would NOT be collected without some huge change in February. Risky? You bet. The one thing we did do was rent to the cream of the crop. We verified employment, credit, references. Our market is not changing, it is totally changed.
I post this not to scare investors here, I do it to share a dynamic that is real and pressing. some of these rentals have been vacant for 4 MONTHS!!
I try to post the good the bad and the ugly here. I often learn more from posts that show mistakes were made…and make no mistake, we took our time responding to this changing marketplace.
I get in a “comfort zone” and don’t want to change. It took my vacancy rate going to 18% to make me do some new things. will this be a huge success? I don’t know, but to watch vacancy rise without trying SOMETHING is just poor business in my book.
I am seeing late pays and partial pays on some of my Notes also, rather than waiting for skips, I am trying to work with two couples to keep them in their (my) homes. For one Note person Feb. 1 I will forego payments in Feb and March and add 2K to back end of lease (try that on a financial calculator). He broke his wrist (roofer) and won’t be back to work for 6 weeks. These folks have been in their home 3.5 years and one late and one partial (Jan 08) in all that time. The other couple need a cheaper home and they will move out of their 4/2 double on 3/4 acre and move into a 3/2 16X80 on 1/4 acre lot. Pyments will go from 887 to 689 per month. I feel these folks will not be able to weather this…they both are working part time and she is 4 months pregnant! But these folks bought my second L/h I put together for resale and i feel I need to try and keep them paying. In 4 plus years they have paid 17 late payments…
Clearing up these two problems will make my life a lot easier. A year ago I would have booted both and resold the packages, today I try to keep folks with decent track records in MY homes. And even the 17 late pays folks are great Buyers, I have never forgiven a late charge, and these 17 lates put over $1500 in my pocket…
Anyone else had to get creative to keep units full?
I’m starting to get used to the taste of “humble pie”, tastes like chicken! LOL