Churn & Burn – The costs of losing a good customer!
Service is the name of the game right? So when a tenant/customer calls asking for some things to be done around your/their rental house what happens? As landlords and property owners it is natural to say those things aren’t necessary or somehow find a way to put them off. (Because we know the immediate costs of the work)
Studies show that losing a good tenant, refurbishing your rental and then re-renting can costs around 2.5 month’$ rent on average. And this is with a well maintained property. Turnover “churn” costs $$$.
What is the costs of having a vacant house up for sale? For starters; property taxes, insurance, debt service, utilities, lawn maintenance and “other” maintenance. Manage this thought by reducing your number to a daily or monthly $number. And as you go through the selling process keep in mind that every day this house is on the market this is what it is costing you. This helps all of us make better decisions when deciding on what to do with an offer or with your asking price (when to lower or not).
Take care of your investment and your cash flow. (Lessons from the dark side – boo!)
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