Author Topic: Quick question on "rentability and turnover"  (Read 1143 times)

Lonely Artisan

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Quick question on "rentability and turnover"
« on: January 02, 2017, 01:59:50 PM »
Hi all!

Looking into a property with 9 appartments. One is 6 1/2 and the other 8 are 250 square foot studios. Mostly elderly persons. Near services and across the bridge from a big city. The numbers run good, but what is of concern for me is the turnover % of such small appartments. To wants extend do you factor this in your calculations, and to what extent does it influence you?

thanks!

leighb

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Re: Quick question on "rentability and turnover"
« Reply #1 on: January 08, 2017, 11:39:20 AM »
Turnover sucks! For me it's the difference between making money and losing it on a property in a given year. It always takes longer to rehab, it usually costs more than I budget and takes longer to fill than I would like.

It's also the price of doing business.

What I like about your situation is that you have a number of units. So while you'll deal with turnover, you will be able to smooth those bumps out. If you only had one or two units it would be harder to budget for. This way you can run your numbers knowing that on average 8 units will be occupied and one will need turnover loving.

Berubeland

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Re: Quick question on "rentability and turnover"
« Reply #2 on: January 08, 2017, 01:27:23 PM »
Smaller apartments tend to turn over much more frequently and lend themselves to a more transient population. The idea of targeting the elderly on a pension is deliberate and smart strategy meant to deal with this problem.

fishnfool

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Re: Quick question on "rentability and turnover"
« Reply #3 on: January 08, 2017, 05:00:54 PM »
Only demand and availability will determine the rate of your vacancies. Of course having a rental in good condition is also important to the would be renter, but that goes without saying. Around here there would be hardly any vacancies (bay area CA) for a nice studio apt for a single person, even a unit in less than top condition.

NoNonsenseLandlord

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  • Location: Eagan, MN
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Re: Quick question on "rentability and turnover"
« Reply #4 on: January 09, 2017, 08:31:50 PM »
I have all 3Rs.  I get about 30 month for each tenant.  Roommates are the worst.  Do not worry, if you have good tenants, you can turn them easily.

I only had 60 days vacant in 2016, with 5 turns and 25 tenants.