There are some tenant prospects who will never have an issue getting placed in a rental property. They have great rental history, low debt-to-income ratios, clean background checks, long-term stable employment, and better-than-average credit scores. Then, there are other tenant prospects who have the potential to be great renters, but it may not be immediately obvious based on their rental application. Perhaps they have limited credit history, high medical debt, or have never rented a property before. 7 TYPES OF TENANTS Every Landlord Should Want
Making a quality decision around tenant placement is critical for the long-term performance and value of an investment property. The greater the net operating income (NOI), the more valuable (and attractive) a rental property will become and the largest source of income contributing to the NOI is actual rents collected from tenants. That’s why tenant turnover can be costly for investors and negatively impact the NOI. When a tenant vacates a property, there will be costs associated such as move-out inspections, preparing/rehabbing the property, marketing the property, and leasing commissions. Tenant
turnover costs can range from $1,000 to $5,000, with an estimated average being about $2,500 per turn (Source: Roofstock).
TENANT TURNOVER COSTS CAN RANGE FROM $1,000 TO $5,000, WITH AN ESTIMATED AVERAGE BEING ABOUT $2,500 PER TURN.
PAGE 88
Powered by FlippingBook