Save the tenancy?

I have a tenant who has been in a unit for a year. She pays $595 bi-weekly. Her name came through my screening software as she was looking for a place to rent (one of my current vacancies). She didnt know it was us that she inquired with until I texted her about it. She stated her reason for wanting to move was due to the cost of the fuel oil used to heat the apartment and that she definitely wants to move before winter.

If she leaves, I will figure a minimum of 2 months vacant, so a loss of $1,200.

I'll be lucky if its only 2 months.

My thought is this: she screened well, she works a decent job, she SUPER CLEAN and pays her rent on time. I am thinking of offering her a few choices in trade for another 1 year lease, so I don't get stuck with her leaving in fall or early winter this year.

Brainstorming yesterday I came up with a few idea. There are some older single pane windows in the unit and the attic insulation could be added to.

My thoughts are to let her have 2 windows replaced of her choosing for an additional $20 per month or she can have the attic insulation added to for an additional $20 per month or both for an additional $30 per month. Any choice would come with a new 1 year lease. (Darn greedy landlords)

Or she could have the choice of submitting the 60 day notice now and moving.

I either spend the money on the unit and keep her or she moves and I most likely lose it to vacancy.

What do you think?

The next tenants could be 2 people in this 2 bedroom and not struggle as much with the fuel oil vs 1 person heating it on their own.

I would do new windows and not charge her, and write it off on your taxes as you would do anyway. I would do insulation and not charge her and write it off on your taxes as you would do anyway.

If you can't do all the windows, I would replace some and buy window inserts for the others. Cheap and easy.

For any large windows or sliders, I would buy room-darkening (heavy) curtains for her. CHEAP on Amazon and they make a HUGE difference in retaining heat in winter and coolness in summer. Make sure to get one wide enough so that it's one single curtain so no wind gaps.

It will take 2 months to re-rent if she moves. How long will it take for you to fill the vacancy that she applied for?

If it is going to take two month to fill the other vacancy, I'd move her. You know she is clean and pays on time. You, yourself give her a good landlord reference.

She'd have to give notice and replace her deposit.

When the cold unit is vacant, then go in and add insulation and replace windows with no tenant in place.

Are these wooden windows?

I would install storm windows and show how to use them. I might also look into window inserts.

Agree on upgrading the attic insulation.

If that is a duplex, I recommend doing both sides before the other side complains.

Even in a high cost area $1200 a month is healthy rent for a substandard house.

Word does spread.

Maybe, do the window, insulation upgrades without bumping the rent, let wife pick some insulated curtains online from her cell phone ( maybe CPA says wife’s cell phone is deduction too, after all, she’s the supplies buyer,) hang the curtains to a 1X4” that is mounted to studs, just above the window casing. More secure than in window casing, and if tenant wants to add shears, other curtains, I give okey-donkey for them to muck about on that 1X4”.

Now, with the better windows, better insulation, thermal draperies (WNC is spot on!), word will spread. And, this good tenant will stay, in whichever of these units, AND will spread the word to find ANOTHER good tenant to fill the other vacancy. That could be key to getting those turnovers like WNC gets.

The tenant wrote/says: She stated her reason for wanting to move was due to the cost of the fuel oil used to heat the apartment.

First, close up any air leaks, esp. in any of the ceiling light openings in the sheetrock/electrical boxes with caulk, expanding foam, etc. The small gaps here and there add up to a large area for heat to escape and cold to enter. Good bang for the buck.

Next, improve the attic insulation.

New windows are often found not to be very cost-effective. Thermal drapes better.

Have the oil burner serviced, asking the tech. to see if there is a possibility to install a more efficient nozzle.

She's telling you it's too expensive to live there with rent + heating bill. So lowering the heating bill by making improvements, but raising the rent, isn't going to fly.

I'm not asking her to pay for the improvements. Her minimum increase in rent wouldn't come close for 2-3 years. I'm asking for an increase in rent for an improved unit. We all do that. Sometimes during tenancy and sometimes after turnover.

It sounds like this one might be worth trying to save.

I would start by asking her what it would take in order for her to sign a new lease (shoot for more than one year) and not move.

If her response is unreasonable to you then no need to offer to replace the windows or add insulation for her - she's going to move anyway.

Her response may also be very reasonable.

P.s.

"The first liar doesn't stand a chance."

The next-door neighbors unit is $15 a month cheaper, it's about the same size, but is in need of a total overhaul. I knew when I remodeled her unit two years ago that I wasn't going to get much more in rent. I only got $15.

Both were originally $580, now $580 & $595. She inquired about a unit for $535 with heat included.

$60 a month difference, and heat included? That’s a lot. I can certainly understand why a single tenant would want to make that switch.

She sounds like a terrific tenant. Me, I would try to get her in the smaller place, ask her if she has any good referrals that might need the bigger place. If she’s calling about places that are going to run over $100 cheaper, even if smaller, I wouldn’t think she’d be willing to come up with any more money to stay where she is now, even with the energy efficiency upgrades.

A couple of windows , some insulation and the curtains aren’t going to make nearly that difference in heating bills. The next few winters are probably going to be just as cold, according to the guys in my family that work with satellite communications. Definitely in a solar minimum, which is colder.

I would do northern windows free, get the wow factor then do the insulation for 20-30bux raised, you have to put bait on the hook.

My take is that the tenant isn't the issue - the issue is the house need an energy saving retrofit.

1st - CALL for an energy Audit. I just googled the programs available through your utility. - DO IT !!!!

our electric utilities do it for $100 and then pay for 50% of energy saving measures installed. It does not matter that she uses oil to heat - the program requires them to be fuel blind.

DO not do windows until you have spent every penny on the other issues found in the audit. Storm windows is the only thing an energy audit would ever recommend

Your tenant will love seeing you taking a positive posture to keep her and will sign an extension after you do the measures.

What are you talking about new windows don't make a difference in heat conservation? When you have leaky old single pane wooden windows vs new double pane vinyl, there is a HUGE difference in heat loss.