Comments on: Profit By Being A Good Tenant http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/ A Vancouverite's journey to financial freedom. Tue, 06 Jan 2009 22:02:00 +0000 http://wordpress.org/?v=2.1.2 By: David http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-624 David Tue, 23 Oct 2007 08:50:52 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-624 Great article. You must be a great tenant. I have been reading into property management recently. The cost of evicting a bad tenant is quite high. Loss in revenue is one thing, if a landlord has to force an eviction after final notice is served, police will need to be involved (in BC at least). Not only that, you can only use police-appointed movers in the process, and that's usually not a small bill. Not to mention there is cost in finding new tenants. Therefore, by keeping good tenants like you, your landlord heightens his chance of getting a positive net return by the time he sells the apartment. And by paying rent on time, you help him meet his financial obligations and keep his resources available for exploring other investment opportunities. It’s a win-win strategy. It’s the same in business, discounts are often offered for prompt payments. This aids receivable management and decreases the chance of bad debt. And customers, given a choice, will likely pay your bills first. I don’t think the rent-decrease offer is a good strategy though as it doesn’t invite more profit (you can only rent one apartment from him). He must really like you guys! Great article. You must be a great tenant. I have been reading into property management recently. The cost of evicting a bad tenant is quite high. Loss in revenue is one thing, if a landlord has to force an eviction after final notice is served, police will need to be involved (in BC at least). Not only that, you can only use police-appointed movers in the process, and that’s usually not a small bill. Not to mention there is cost in finding new tenants. Therefore, by keeping good tenants like you, your landlord heightens his chance of getting a positive net return by the time he sells the apartment. And by paying rent on time, you help him meet his financial obligations and keep his resources available for exploring other investment opportunities. It’s a win-win strategy. It’s the same in business, discounts are often offered for prompt payments. This aids receivable management and decreases the chance of bad debt. And customers, given a choice, will likely pay your bills first.

I don’t think the rent-decrease offer is a good strategy though as it doesn’t invite more profit (you can only rent one apartment from him). He must really like you guys!

]]> By: telly http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-625 telly Tue, 23 Oct 2007 13:07:56 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-625 Welcome back! Glad to hear you enjoyed your vacation. You and your wife would be my dream tenants. :) Being a good tenant can be especially profitable during times and in cities where the vacancy rates are high. Unfortunately, as a landlord, these are the times when it's most difficult to find (and keep) a good tenant. Welcome back! Glad to hear you enjoyed your vacation.

You and your wife would be my dream tenants. :)

Being a good tenant can be especially profitable during times and in cities where the vacancy rates are high. Unfortunately, as a landlord, these are the times when it’s most difficult to find (and keep) a good tenant.

]]> By: MillionDollarJourney http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-626 MillionDollarJourney Tue, 23 Oct 2007 14:43:28 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-626 Welcome back FJ! I can agree, being a landlord myself, i'll give good tenants price breaks on their rent. Welcome back FJ! I can agree, being a landlord myself, i’ll give good tenants price breaks on their rent.

]]> By: NeverStopBuying.com http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-627 NeverStopBuying.com Wed, 24 Oct 2007 03:10:00 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-627 I am in a dilema as a landlord as well, as we are happy with current tenant, and vice versa. I am willing to extend a rent freeze for next year, however I also want to do a 3% increase to keep up with Toronto rent. what to do...mnn...I have a soft heart I am in a dilema as a landlord as well, as we are happy with current tenant, and vice versa.
I am willing to extend a rent freeze for next year, however I also want to do a 3% increase to keep up with Toronto rent.

what to do…mnn…I have a soft heart

]]> By: Financial Jungle Guy http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-628 Financial Jungle Guy Wed, 24 Oct 2007 05:13:23 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-628 David - An eviction sounds painful for both parties. Just hope none of us has to go through that. Telly - I think this is one of those times for Vancouver. A whopping 68% of Vancouverites are now homeowners; too many landlords chasing a shrinking pool of tenants. MDJ - It's great to be back in Canada. We're home sick toward the end. NSB - A friend of mine never hiked his rents for 7 years straight! He may as well spoon feed his tenants. Sometimes you just gotta put on a thick face. By the way, are you my landlord by any chance? David - An eviction sounds painful for both parties. Just hope none of us has to go through that.

Telly - I think this is one of those times for Vancouver. A whopping 68% of Vancouverites are now homeowners; too many landlords chasing a shrinking pool of tenants.

MDJ - It’s great to be back in Canada. We’re home sick toward the end.

NSB - A friend of mine never hiked his rents for 7 years straight! He may as well spoon feed his tenants.

Sometimes you just gotta put on a thick face. By the way, are you my landlord by any chance?

]]> By: David http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-629 David Wed, 24 Oct 2007 07:07:33 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-629 Financial Jungle, I am interested in getting into the rental market. Can you tell you where I can find that 68% figure? That's alarmingly high. Financial Jungle, I am interested in getting into the rental market. Can you tell you where I can find that 68% figure? That’s alarmingly high.

]]> By: FourPillars http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-630 FourPillars Wed, 24 Oct 2007 11:22:46 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-630 Welcome back - the pics are great! Mike Welcome back - the pics are great!

Mike

]]> By: Financial Jungle Guy http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-631 Financial Jungle Guy Thu, 25 Oct 2007 07:27:39 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-631 David - For the life of me, I can't find the reference anymore. But I pick up this stat once in a while from reading real estate articles either from the Internet or the Vancouver Sun. Wish I know the central repository for this. If memory serves me well, it was 63% about 5 years ago. David - For the life of me, I can’t find the reference anymore. But I pick up this stat once in a while from reading real estate articles either from the Internet or the Vancouver Sun. Wish I know the central repository for this.

If memory serves me well, it was 63% about 5 years ago.

]]> By: Warren http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-632 Warren Thu, 25 Oct 2007 22:01:26 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-632 I assume from your comments you're in Vancouver. I am as well. I am both a landlord and a renter. I've lived in the same place for 4 years, zero rent increases. In fact, when my room mate moved out 2 years ago, I wanted to live with my girlfriend, who had a cat and a dog, which my landlord did not originally want. I told him that I'd be willing to stay if she could live with me and her pets, and he said no problem. Since then: still no increases! Did I mention the rent includes utilities? Its just too good of a deal to pass up. There are a lot of homeowners in Vancouver (too many, don't get me started on the Real Estate market), but vacancy rates are still very low, so its a landlords market for the most part. I know there's nowhere else I could live with even close to the same rent, for the size and what we get included. As a landlord you can't underestimate a good tenant. I've only raised the rent in between tenants. On the same note, I have set a lower rent in the past, giving me the pick of tenants. I'm a big believer in the passive part of passive rental income. I assume from your comments you’re in Vancouver. I am as well. I am both a landlord and a renter. I’ve lived in the same place for 4 years, zero rent increases. In fact, when my room mate moved out 2 years ago, I wanted to live with my girlfriend, who had a cat and a dog, which my landlord did not originally want. I told him that I’d be willing to stay if she could live with me and her pets, and he said no problem. Since then: still no increases! Did I mention the rent includes utilities? Its just too good of a deal to pass up.

There are a lot of homeowners in Vancouver (too many, don’t get me started on the Real Estate market), but vacancy rates are still very low, so its a landlords market for the most part.

I know there’s nowhere else I could live with even close to the same rent, for the size and what we get included. As a landlord you can’t underestimate a good tenant. I’ve only raised the rent in between tenants. On the same note, I have set a lower rent in the past, giving me the pick of tenants. I’m a big believer in the passive part of passive rental income.

]]> By: Vancouver real estate http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-634 Vancouver real estate Fri, 26 Oct 2007 11:21:27 +0000 http://financialjungle.com/2007/10/23/housing/profit-by-being-a-good-tenant/#comment-634 I think it is always good to keep a tenant satisfied to keep the satisfied tenant. I am a landlord myself and I will not consider increasing my tenant's rent next year. If the both of us are satisfied, we might just go on doing business together. I think it is always good to keep a tenant satisfied to keep the satisfied tenant. I am a landlord myself and I will not consider increasing my tenant’s rent next year. If the both of us are satisfied, we might just go on doing business together.

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