For several Warren rental property owners, their most valuable asset is real estate. But on the other hand, if you think that the definition of an asset is something that generates cash flow, it might be that your most valued asset isn’t your property but, in truth, your tenant. In any case, a vacant rental house by itself produces no rental income; you need rent payments to make a profit.
Rental property investing is a business, and the same as all businesses, you need loyal and satisfied customers to be successful and thriving. In the business of rental real estate investing, your “customers” are your tenants, which makes caring about them and really ensuring they are satisfied and enthusiastic in the rental home your top priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most general reasons rental property owners discover a large decrease in their annual cash flows. Having a vacant rental property, even momentarily, presents with a whole other list of added expenses, from cleaning and repair costs to lost rent.
It can take a while to find a new tenant, with all the advertising costs, background checks, and other expenses relating to that method. In addition, all of your rental’s ordinary expenses are now no longer offset by rental income, additionally wrecking your bottom line. The more your tenants leave, the less likely you will earn any profits from your rental property.
The ideal way to avoid this situation is to execute what you can to reduce or eliminate tenant turnover. The first move is to find good tenants; the subsequent step is to keep them. A good tenant will not only follow the terms of their lease but, besides that, will do so attentively and conscientiously. They will observe regular communication with their landlord to convey maintenance issues and ask inquiries due to the fact that they care about the property’s condition.
On a final note, a good tenant will pay rent on time and in full each month, endowing you with stable rental income for as long as they remain in the home. As soon as you find a good tenant, you should urge them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the appropriate ways to prompt a tenant to stay in your rental long-term is to deal with them with concern and respect. By doing this, you are helping your tenant feel valued as a person rather than just a number on a balance sheet. Whenever tenants feel valued, they are more apt to respond in kind by caring as regards to and for their rental home.
You can help your tenant feel valued by developing a positive relationship with them built on habitual, effective communication. When they request maintenance or repairs, respond quickly and perfectly, and deal with the issue within the promised timeframe. Show your tenant respect by giving advance notice once you need to set foot in the property, and in many cases ask for the tenant’s schedule before making appointments for home services.
As an investor, you are hoping for an investment property to perform well by the numbers. However, as a landlord, you maximize your profits by putting your tenants first. By grasping that your tenants, and not the real estate you own, are your most valuable assets, you can more competently engage in conducting the things that will support you to accomplish your property ownership goals.
At Real Property Management Advantage, we understand the value of tenants. Therefore we grant Warren property management services that involve finding and keeping good tenants for your rental homes. Would you want to learn more about what we have to offer rental property owners like you? Contact us online or call us at 248-259-2575 today!
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