This is a great article on the importance of finding the right residents. In most portfolios, vacancy is the biggest killer to cashflow. But you also don’t want to get desperate and settle on a resident. Sticking to a plan with your screening process is critical. Sometimes a bad resident is worse than vacancy.
Some highlights:
- “Someone else may have a low credit score because they don’t use credit but have awesome income, a great job, and good assets.” (don’t even get me started on credit scores!)
- “If there are similar units for $500 less a few blocks away, they are going for the cheaper units. The market will tell you how much your property will rent for. It’s best to listen and make any necessary changes.”
Link to the whole article here.