Ummm… + $500 x 12 = $6000 x 10 = + $60000 – $30000 with whatever insurance tax etc. expense you paid as a landlord for the year.
That’s also if the tenant can stay in business for so long with (knock on wood) good food and business but a parking lot that needs help.
You said on page 1…
“It would be no problem if I had the same tenant for 20 years but every time a tenant leaves it can cause a 6 month loss in revenue even if a new tenant moves in right away.
They always want at least 2 months to renovate, they say that it benefits me, they are improving my building.
So they make it what they want but then they leave, trouble is it’s not what the next tenant wants so we have the expense to rip it out before we can start anew.”
You had leases with prior tenants….no? Can’t count numbers until they arrive as $$$$$.
Idle property always creates -$$$$$$
That makes a pretty strong case for the value in having a successful popular tenant (2nd Ave. Junior’s Ben Benson’s The Cottage) and working with them as much as possible. There’s risk around every corner when a new tenant moves in….no matter what. No security in a bank…that’s for sure.
All that turnover to come…legal fees…risk of new tenant business failure…idle time is part of the piss poor business decisions that make certain landlords in high-ticket markets constantly unloading properties…because they and many times their investors are in a heap of trouble. That might be a reason why they play fast and hard…because they chase the quickest $$$$$ until they flip it to the next landlord.