Securing tenants is the most important aspect of real estate investment.If there are many moving out of the properties you own and your income is unstable, there is a high possibility that there is a problem with the location or property condition.While there are owners who are successful with multiple properties that have constant tenants, there are also owners who are happy to purchase, but do not succeed after that.Where is this difference?
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there is always a reason to leave
There are various reasons for moving out, and it can be said that there is no choice but to move out due to changes in the life cycle such as changing jobs or graduating.However, many of the withdrawals are due to other reasons.What's more, the vacant person doesn't talk much and one day suddenly announces the cancellation of the contract.When you tell us to cancel, it is difficult to keep them because they have already found the next property.Originally, when moving, there will be a burden on the evacuees' side, so it shouldn't be something you do frequently.And there is a tendency for vacants, and properties with many evictions have appropriate reasons.
Eviction losses increase the longer the vacancy lasts.Owners should first consider the impact on their investment in the event of an eviction.Pure loss due to restoration to original condition, advertising expenses for tenant recruitment, and vacancy period. If you lose about half a year of rent in one move-out, wouldn't it be far more meaningful to use that cost for capital investment that will lead to improved convenience for tenants?
Reasons why tenants move out so quickly
dissatisfied with the building
Ancillary facilities such as plumbing were deteriorating, but repairs were not made.The noise from the next room is loud, and the shared space such as the garbage storage area is unsanitary.And so on, parts that are used every day are prone to deterioration and are dissatisfying parts.
There are some owners who say that they should take a look at the interior first and then move in after being convinced, but in the first place, the position and way of thinking of the owner and the tenant are different.It can be said that the quality of the property and the quality of the tenants are often proportional, so getting a property in good condition will also reduce unnecessary stress on the owner's side.When buying a property, it is really important to take a good look at the tenant situation.
Trouble with neighbors
Neighbor troubles are a common example of moving out.If there are nuisances such as noisy nights, loud music, or not taking out the garbage properly, and they are not dealt with, the next occupant will have the same problem.In this way, there are repeated cases of moving without waiting for contract renewal.Especially in properties where there are many people on welfare (rents are often low and soundproofing is weak), there are cases where noise problems occur because people stay at home for a long time.
Expenses such as renewal fees and rent
Payment of the renewal fee once every two years may be the cause of eviction.Recently, the number of rent-free properties with no security deposit and key money has increased, and some residents think that it is better to move out than pay renewal fees while still dissatisfied.I think it's better to use the renewal fee of 2 TO 1 months of rent for moving expenses.
Difference between owner and tenant satisfaction
For the owner, a property with a high degree of satisfaction is a property with a low cost and a large profit, that is, a property with a high yield.It is essential to keep costs down as much as possible when making an investment.There is a difference between satisfaction and dissatisfaction of tenants.However, as a result of pursuing only the satisfaction of the owners, a large number of tenants move out and the vacancy rate rises. is also predicted.This is the reason why it is difficult to secure profits while maintaining the occupancy rate, and that real estate investment is a business operation.
To prevent tenants from leaving
If the feeling of discomfort in the property is a factor for tenants to move out, what should we do to prevent the same thing from repeating itself?
take a survey
There is a way to take a survey when you move out and ask for frank opinions.It's a damaging eviction, but it's a great opportunity to expose the invisible to prevent further evictions.
Resident screening
It can be said that noise problems are likely to occur in the case of lightweight steel and wooden structures.However, most of the tenants follow the rules and live normally, so it is important to check whether there is any chance of causing problems during the screening process in order to avoid trouble.Carefully check the place of employment, work history, and personality through the management company.
Reduce renewal fee
Currently, the hurdles for moving out are lowering as the number of rent-free properties with no security deposit and key money is increasing.If your property is inferior to the surroundings, and if there are signs that the tenants are likely to move out due to the approaching renewal, it may be more profitable to eliminate the vacancy period without charging the renewal fee.
Repair and equipment replacement support
The owner has an obligation to repair the rental property as an owner.Even though repairs are necessary, if this is neglected and an accident occurs, there is a possibility that a much larger amount of money will be incurred than if the repairs were taken seriously.
It should be recognized that repairs and daily replacements not only improve convenience for residents but also reduce risks for owners themselves.
Summary
There is always a risk of vacancies in real estate investment, but in order to reduce the risk even a little, understanding the market price of surrounding properties and not forgetting to check the property itself for damage on a daily basis will lead to investment success. can be said.
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
