Once again, having the right boots-on-the-ground team to manage my real estate has paid off. I mentioned before about a tenant that received military travel orders to report to another base at the end of January and had to break his lease.
Fast forward to March, and we still don’t have a new tenant. We had one lined up a month ago, but their ability to sell their previous house fell through.
I received an email that a couple that had sold their prior house and was building a new one. Until their new home is ready, they are asking for a special short term lease (eight months). To support such a special lease, a premium of $200-300 was suggested by the property manager.
I picked up the phone and called my real estate agent that finds tenants. She boiled it down real simple. My unit was the only one in the area ready to go RIGHT NOW. The wife is a realtor and the husband works for the police department. When I first read that, it sounded like two people that probably had solid character. My local agent was able to tell me that she actually knew them and gave me a good read on things.
Don’t get sucked into analysis paralysis
I had already punched in $300 x 8 months and saw that I could recover the lost rent from two months of vacancy. And if things drag out, they might have to stay longer. That combined with the solid reputation these potential tenants had, it was a no brainer. I told my agent to pull the trigger and start the application process.
It’s important when opportunities rise, to jump on them and not waste too much time calculating things. Having a local professional that understands the local market is invaluable. I can follow a lot of things, but being able to call my agent or Jeff Brown and have them boil away all the irrelevancies while focusing on key factors is important.
My agent explained that there were more units that would be coming on the market soon, but mine was the only single-floor home available RIGHT NOW. I told her to pull the trigger!
When this short lease runs out, I’ll call her again and we’ll see what rents rates are like at that time. But it will feel good to catch up cash flow wise and even pull ahead.