For some Dickinson rental property owners, their most valuable asset is real estate. However, if you take into account that the definition of an asset is something that generates cash flow, it can possibly be that your most valued asset isn’t your property but rather your tenant. Since indeed, a vacant rental house by itself brings about no rental income; you need rent payments to earn a profit.
Rental property investing is a business, and similar to all businesses, you need loyal and satisfied customers to be productive. In the business of rental real estate investing, your “customers” are your tenants, which makes caring about them and making sure they are delighted in the rental home your top priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most widely known explanations why rental property owners identify a huge drop in their annual cash flows. Having a vacant rental property, even fleetingly, comes along with a full list of added expenses, from cleaning and repair costs to lost rent.
It can last long to find a new tenant, with all the advertising costs, background checks, and other expenses pertaining to that process. Furthermore, all of your rental’s ordinary expenses are now no longer offset by rental income, diminishing your bottom line. Certainly, the more often your tenants leave, the less likely you will achieve any profits from your rental property.
The technique to avoid this situation is to strive to do what you can to reduce or eliminate tenant turnover. The first thing is to find good tenants; the next important thing is to keep them. A good tenant will not only comply with the terms of their lease but certainly will do so thoroughly and conscientiously. They will openly require regular communication with their landlord to notify maintenance issues and ask issues simply because they care about the property’s condition.
Lastly, a good tenant will pay rent on time and in full each month, offering you a stable rental income for as long as they take up residence in the home. Right away when you find a good tenant, you should do your best to encourage them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the best solutions to persuade a tenant to stay in your rental long-term is to delight them with concern and respect. In doing this, you are helping your tenant feel valued as a person rather than just a number on a balance sheet. Once tenants feel valued, they are highly more apt to respond in kind by caring about and for their rental home.
You can help your tenant feel valued by creating a positive relationship with them built on frequent, gainful communication. When they seek maintenance or repairs, respond quickly and well, and handle the issue within the indicated timeframe. Show your tenant respect by giving advance notice every time you need to come to the property, and at all times ask for the tenant’s schedule prior to making appointments for home services.
As an investor, you wish your investment property to perform well by the numbers. But really, as a landlord, you maximize your profits by putting your tenants first. By being aware that your tenants, and not the real estate you own, are your most valuable assets, you can more excellently focus on accomplishing the things that will keep you fulfilling your property ownership goals.
At Real Property Management Prestige, we understand the value of tenants. This is exactly why we provide Dickinson property management services that include finding and keeping good tenants for your rental homes. Would you be willing to learn more about what we have to offer rental property owners like you? Contact us online or call us at 281-984-7463 today!
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