Is it in PM's interests to "churn" tenants?

[keen2lern]

This sounds really cynical, but keen to get peoples thoughts:

Here's the story: when interviewing a potential PM the other day, she suggested that the trashed backyard remain trashed .. this goes against our thoughts that a trashed backyard invites transient trashy tenants ..

So, a thought popped into my head that maybe it would be a good earner for the PM if tenants did churn every 6/12 months?

i.e.
Property Inspect on exit .. $50
New Letting Fee (2 weeks rent@$200) ... $400
Margin on advertising .. $10
Property Inspect for new tenant .. $50

Looks like $500 grossed .. of course they would have to advertise and show the property to prospective tenants etc...

 

[Sim]

Originally posted by keen2lern
So, a thought popped into my head that maybe it would be a good earner for the PM if tenants did churn every 6/12 months?

No it wouldn't. Because you would take your business elsewhere wouldn't you ?

 

[asy]

Originally posted by keen2lern
a thought popped into my head that maybe it would be a good earner for the PM if tenants did churn every 6/12 months?

i.e.
Property Inspect on exit .. $50
New Letting Fee (2 weeks rent@$200) ... $400
Margin on advertising .. $10
Property Inspect for new tenant .. $50

Looks like $500 grossed .. of course they would have to advertise and show the property to prospective tenants etc...

I don't think it would be worth it, the work required to put a new tenant in, and get rid of an old tenant isn't worth the, approx $220 we make. (We don't charge for inspections, or advertising, and only 1 week let fee).

Also, if I found out my property managers were doing this, for whatever reason, they would be out of here so fast... They need to realise that we work for the landlord, and must do what is best for THEM, not us... (Although the work involved in putting a new tenant in, would not be worth the $220 in my opinion).

There probably are PM's out there who are doing this kind of thing, but I don't think they have thought it out too well. Also, their managements can't be growing, and I bet landlords are leaving in droves. (We havent lost a management for over a year, other than if sold or re-occupied by owner).

In my opinion, you should certainly fix the yard, the better you present the property, the more the tenants are likely to look after it. After all, if it's obvious YOU don't care, why should they???
(not to mention that the 'trashed' yard may be an injury hazard, depending on what the trashing is...)

hope this helps,

asy

 

[itinerantotter]

I've always found that I attract appreciative tenants if it's obvious I care about the property too. In fact, now that I've been in the game for some time, it's an advertising point with potential tenants. So, obey your instincts which say that a trashed yard will attract trashy tenants.

I like to do minor maintenance as I go - saves things snowballing into something major - and the place is always virtually ready to sell should I (heaven forbid!) have to have a fire sale. I no longer have the PM who kept on saying 'Why would you bother?". Funnily enough, she charged like a wounded bull too, and would not bring her rates and charges down at all for quantity.

A PM with that attitude will develop a bad reputation and NOT retain clients.

Cheers

 

[keen2lern]

This forum is so cool! Thanks for all your comments

The lady I am going to use said all the right things, and agrees with my philosophies on renting, and I have a few, having rented for 10 years myself. Nothing worse that a PM, where, as a friend who just had an inspection said .. "you have to justify to them that you are a fit enough human to even exist"

Given an ideal / standard to live up to, I believe most people will rise to the occasion...