move-out

HomepageBlogmove-out

Tag: move-out

CategoriesLong Term Rentals Real Estate Investing

Reasons Why You’re Tenants Are Moving

By brioproperties,

Reasons Tenants Move Out of Their Apartments

By Kim Schmitt, Managing Broker

As a Landlord or Property Manager our goal is to minimize unit turnover rates to insure a steady passive income. Unfortunately, turnovers happen, and they occur due to a multitude of reasons. Let us look at the most common reasons that tenants move out.

  1. The Tenant Cannot Afford the Rent
  2. Apartment Size
  3. Job or Relationship Status Change
  4. Neighbor Issues
  5. Maintenance Issues

Throughout my years in this industry I have found the above reasons for tenants moving out to be the most common. As a Property Manager when I received a notice that a tenant was vacating, I would not just mark it on a calendar and call it a day.  I would follow up with the tenant to get a good idea of the reason why they want to leave as they do not always disclose that information in the letter. More times than not I have been able to keep the tenant by offering an alternative idea. With this said, there are instances where both the tenant and manager have no choices and the tenant ends up moving out.  However, it is always worth the time to look at the big picture and see what can be done to keep a good tenant. 

What can we do to keep these Tenants?

The Tenant Cannot Afford the Rent

Reasons that cause tenants to no longer be able to afford rent are usually completely out of our control and often out of the tenant’s control. So, what can we do if we really want to keep the tenant? We have two choices; both may be worthy of consideration. The first is that we could offer to relocate the tenants to one of our lower priced vacancies if one is available. The second would be that we could reduce the rent in order to keep them. If you choose this option, you will want to compare the rent decrease to the cost of preparing a turnover and the time the unit could sit vacant. Say you can keep the tenant by reducing the rent by $50 per month, this comes to a loss of $600 over a 12-month lease. I guarantee that the preparation for the turnover usually costs more than that, plus the loss goes up if the unit sits vacant over an extended period. 

Apartment Size

This reason comes up when the size of the family changes which causes the tenant to need either a larger or smaller living space. Empty nesters, having babies, new couples or a tenant is becoming single tend to move due to apartment size. Here is what we can do in this scenario to keep the tenant. Offer the tenant a smaller or larger unit if one is available. This would be our first and best option. If this is not possible, offer an incentive such as upgrading their apartment by repainting or new carpet, give them a garage at a discounted rent or for free for one year, or lastly offering a reduction in rent to keep them.  This is where we can get creative to keep the tenant!

Job or Relationship Status Change

This is a tough one but not impossible. There is little we can do if a tenant needs to relocate for a job but what if the job change is only financial? Say they are going to have a decrease or increase in salary. In both cases, once again our choice would be to offer them another available unit that would fall within their new price range. This works for increases in salary as well. Maybe they want something bigger and newer. If we have a vacancy that fits their desire, we should offer it to them at this time. Relationships changes such as separation, divorce or marriage could be the reason. If this is the case, then offer any available rentals you may have so that the tenant has the option of staying. 

Neighbor Issues

While we cannot always control the next-door neighbors, we can control the type of tenant we move onto the property by utilizing good tenant screening procedures. It is so important to put quality tenants in your rentals. One bad tenant could quickly cause good tenants to move out of your property. In issues such as this it is always a good idea to try and get the tenants to talk out their issues, if they cannot do it on their own then you may need to mediate the situation. If this fails, you can offer a unit transfer to one of the tenants.

Maintenance Issues

Maintenance issues can cause a tenant to move. Tenant’s can quickly become tired of dealing with ongoing maintenance issues such as leaky roofs, pest problems, mold, clogged drains, etc. This is the one issue that we have complete control over by providing an easy way for tenants to report maintenance issues, quick response time and doing periodic maintenance upkeep.  

Summary

The takeaway from this post is to follow up on notices to vacate, you may be surprised at how your turnover rate drops if you think outside the box of ways to keep your tenants. We at Brio Properties are always looking at the big picture! Visit us often for more tips and tricks of the trade to ensure the success of your rental property investments. 

CategoriesLong Term Rentals

Normal Wear and Tear & the Security Deposit Dilemma

By brioproperties,

As a landlord and property manager I look at security deposits with two different hats from time to time.  I will admit the views can be stark different at times. As a landlord I tend towards the view of maximizing cash and going heavier on security deposit deductions (I’ve had my own management company employees lovingly call me Scrooge McDuck).  As a property manager I lean towards making sure a reputation is not developed for being a company that doesn’t return security deposits or handle them unfairly. I recently went through security deposit boot camp per say. After talking with a colleague and meeting with a real estate attorney I began to see the reality of security deposit confusion regarding normal wear and tear and how in reality it may come down to having a precise procedure in place.

I was one who used to charge for any crumbs in the cabinets even if it was just a few.   Or charge for cleaning the mirror when it wasn’t spotless or dust on the closet shelves.  My attorney called me on it when a tenant decided to contest her security deposit.  I asked my attorney to step in hoping to avoid the hassle of a court case. I was surprised when my attorney informed me that my charges were a bit steep for the condition the unit was left in.  He urged me to settle with the tenant outside of court because he believed a judge would award the tenant more than what the tenant had wanted back.

If you remember back to your school days, your English teacher told you the worst way to give a definition for a word is to define it by using phrases that describe what it is not. I.e. bad definition of liquid would be “It is not a solid matter.”  The Wisconsin State Legislature did not listen to their English teacher: 704.28(3) Normal wear and tear. This section does not authorize a landlord to withhold any amount from a security deposit for normal wear and tear, or for other damages or losses for which the tenant cannot reasonably be held responsible under applicable law. Thank you for….nothing.

Judges in various states have issued opinions declaring that anything a landlord does as a routine procedure for a “make ready” cannot be charged to the tenant if the time or cost was not significantly increased.  This may still seem a little vague but it begins to make sense if you think it out a little. Consider this: If you normally wipe out the kitchen cabinets before a tenant moves in it may not may make sense to a judge if you charge a tenant for a few lone crumbs in a couple of the cabinets.  If the cabinets were sticky, goopey, or every cabinet had multiple crumbs and debris in them then it would be reasonable to charge them. If you normally paint every unit top to bottom after move-out, you may not be entitled to withhold money for scuffs or hand prints on the walls. If the tenant’s child left their interpretation of Picasso as finger painting on the bedroom wall, you can charge.  The key to remember is: if it adds significant time to your routine procedures then you may have grounds for charging.

Yet the key to having a smooth move-out and security deposit return goes beyond knowing normal wear and tear versus damage.  A smooth move-out begins days before the tenant moves in. In the next blog, we will look at security deposit procedures that will save you hassle and grief.   

Add to cart