Castle Hill Investments’ “Turnkey” Partner Team

Leasing

It’s a fact of owning rental property of any kind that tenants can and will move out some day. Though we’ve heard countless stories of tenants’ leases lasting 20 years or more, this is the exception to the rule.

For our calculations (more on this in “A Closer Look at the Numbers” section, we assume the length of the average tenancy to be about 1.5 years (this assumes, on average, that for every two tenants you get, one will stay for one year, and the other will stay for two years).

The two best methods of keeping tenants for as long as possible are:

• Keep rents competitive to the market. An owner who tries to go above what the market clearly dictates is a reasonable price is bound to endure extended vacancies and heartache, whereas an owner that comes in at market value (and for some of our owners, a tad under market value to make it a no-brainer) with a clean, properly “made ready” unit, should find a loyal tenant quickly.

• Ensure that property management is properly taking care of the tenant.
  • We’ve seen property management companies that direct all incoming phone calls direct to a voicemail system for a call-back. We consider this unacceptable, and require partners that answer all incoming calls with a human who quickly addresses their maintenance or related inquiry.
  • Quick responses to maintenance calls; and don’t skimp on expenses – sure, it’s better if you don’t have to replace that aging garage door, but expect a tenant to find a new unit to rent after their current lease that sports a shiny new one
  • Regular communication – does the manager inform tenants of freeze warnings? Do they send little notes every once in a while to create that human connection?
  • Contact the tenant 60 days prior to lease expiration and make them an offer they can’t refuse to stay in the unit; sometimes this little push is enough to get a renewal

A tenant who feels “loved” and not shuffled around like some human ATM machine is going to be a tenant that seek out a new home.

Our recommended partner firm lives by these guidelines.

Next Page: Insurance