So, back on the hom front

On the cooperative household side of things, we had a very lean fall. For the first time in more than ten years we were actually empty for about a month. The cooperative household can be as much as 25% of our cash flow, so being empty put quite a dent in our financials.

And when things are lean, I have to admit I am willing to be more flexible than I would otherwise. Mostly that means we have been willing to work with shorter terms than I have in the past. In our state, there is a duration dividing line between places of accommodation (hotels) and real estate, and we make sure to structure what we have to offer as real estate rental, not a hotel. Generally it has not been an issue in the past. Three months has been about the shortest period we have worked with. But with tenants in short supply we have been reduced to the legal limit recently. So we have had a cop who was new to the area and his permanent digs weren't available yet, a research student from Chicago, A med student doing a rotation at the local teaching hospital, an electrician on temporary assignment and next up a Physical Therapist doing a stint at a nearby hospital.

Having this much turnover is a little taxing. Doing reference checks and interviews easily eats a day. And for every one we get to the point of doing references check, we consider/interview another ten. Training a tenant is also part of the over head. Cutting the duration of stay by a third triples the overhead efforts to turn over new tenants. It also triples the losses due to gaps between tenants.

Short duration has been a choice that worked for us in the past. Short term people come with less baggage. Their foibles are easier to endure because of the limited exposure. Temporary situations like ours can be difficult to find, so people who need it are willing to consider the conditions we place on it. And it's nice to have fresh faces cropping up from time to time.

So, accepting less than optimal terms in times of trial is something we do to endure until things are better.

turning over stones

Turning over a tenant is a process.

Change the code on the front door. Make sure they don't leave any surprises in the fridge or around the kitchen. Check the room and give it a good cleaning. It always amazes me how much gets tracked into an upstairs bedroom. I am a little particular about getting the area rugs clean to protect the floors. Then clean the rest of the house. Got to have the house project how I want it treated.

When the new tenant arrives, first things first, resolve any lingering paperwork. Review and sign the contract with them. Get the deposit and the first periods rent. Give them a tour of the house, point out the amenities. Put their name on the answering machine. Log them into the wireless network. Ask if they have any questions. I often run on with my patter about the house such that I forget to ask if they have any questions.

Then, give it a rest. Let them settle in in their own time. And don't be so up tight. The time to be uptight is when you are looking at their references and making the decision. Don't let them move in if your going to be uptight about it.