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Landlording on AutoPilot, 2nd Edition by Mike Butler

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CHAPTER 2The Life Cycle of a Tenant from A to Z

Much like the life cycle of a donkey is from A to Z, understanding the life cycle of a tenant from A to Z will give you a big advantage in running your rental business very efficiently.

If point A for a donkey is the conception of the egg and sperm, and point Z is the death of the donkey, we can apply this same basic concept to the life cycle of a tenant.

Point A

What is point A in the life cycle of your tenant? You might say when they get keys to your rental unit or when they sign your lease. Not true.

Point A is the moment you get notice of any upcoming vacancy of your rental unit.

  • This could be purchasing another rental property. You know at that point you will have upcoming vacant unit(s), unless you inherit the existing tenant(s) with the purchase.
  • Getting notice is also the moment one of your tenants informs you they will be moving out at the end of next month. If a great resident, find out why they are moving. Many times, you can simply move them to another one of your rentals. If you can't save them as your tenant(s), this is your point A for your next tenant.

Point Z

What is point Z for the life cycle of your tenant? Many investors believe this is when they have moved out or when you get the keys from them. Not true.

  • Point Z occurs when this previous tenant owes you ZERO dollars. If you have followed and properly implemented the entire Move-Out Process, your tenant may still owe you money even after deducting their ...

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