Tenant turnover doesn’t add up

Rent it Right

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Q: We hired a management company to find tenants and collect rent at our rental in a nearby town. Over the past two years we've had four sets of tenants; one broke the lease and we had to file evictions on two of them. The property is nice though the market is cool now. We're tired of the fast turnover -- are we or the management company doing anything wrong? --Jose M. A: It sounds like the company is filling your property too quickly, perhaps without taking the time to properly screen applicants. A management company will be tempted to find tenants fast because it gets a cut of every monthly rent check: The sooner it's rented, the sooner the checks come rolling in.In addition, the company gets a fee every time it has to show and rent the property. It doesn't take a genius to see that frequent turnovers and minimal vacant months are in the management company's best interests. If an eviction is necessary, you'll pay the company extra to handle it (of course, you'll pay a law...