It might seem counter-intuitive, but it was actually my first action to take steps to shore up longer-term cash flow from my existing 6-unit building rather than to focus immediately on 201 E. Clifton.
I had converted all of the existing tenants' leases towards month-to-month tenancy in order to prepare for the impending construction. Now that the rehab was on hold, I went back to get them signed for longer term leases to cut my risk of them leaving.
I also had to refill the vacancy in 205#2 that I had intentionally not re-leased after the girls left. This was a big hole in my cash flows since it was the largest and nicest apartment that I have. I had actually tried to refill it for months (since February) but even after 75 showings and dropping the price, I was struggling to find a tenant. I had everyone from out of towners from all ends of America to locals to neighbors to city council candidates and nothing. The common refrain was not having laundry or air conditioning provided were deal breakers. Even those that would look passed these issues and fill out an application, they would vaporize and go MIA before signing a lease. Marketing while it's cold out didn't help.
Finally around the time that I closed on 201 E Clifton, I was approach by a local college student with a short-term rental business. He would sign a lease, completely decorate and furnish the apartment, add nicer locks, and manage the rentals if I would sign off on his ability to sublet the apartment. My monthly rent would come from him regardless of how often he rented it and he would keep the difference in what he earned. He also would clean the apartment and halls regularly as well as repair any damages.
To say that it has been a blessing is an understatement. Beside it making the lack of laundry irrelevant, the window units that he installed haven't had any complaints. It's easy to tell who is staying there and I've had positive interactions with his guests and gotten similar complements from my other longer-term tenants. The few times that guests were loud, it was only a few hours and then they were gone the next day (I wish I could say the same of my other tenants).
It's been amazing to hear the stories of people visiting Cincinnati. I never realized how many families come to town regularly for testing at Children's Hospital (really made me appreciate the quality of care we have locally). It makes me happy that they enjoy the experience of staying in my building while they are here (and want to come back). It's a good thing.
No comments:
Post a Comment