Many Stone Mountain rental property owners know that their most valuable asset is real estate. But then, it may be that your most valued asset isn’t your property but your tenant, particularly if you consider that the definition of an asset is something that produces cash flow. Taken together, it’s impossible for a vacant rental house to generate rental income on its own; you must have rent payments to earn a profit.
Rental property investing is a business, and in order to achieve success, you should create customers that are loyal and satisfied. Your “customers” are your tenants when it comes to the rental real estate investing business, which indicates that caring and being concerned about them while in the rental home is the number one priority.
Tenant Satisfaction: It’s Just Good Business
One of the most predictable reasons rental property owners see a sizeable reduction in their annual cash flows is because of tenant turnover. Possessing a vacant rental property, even for a short period of time, comes with a long list of additional expenses, such as cleaning and repair costs to even lost rent.
Because of the advertising costs, background checks, and other expenses connected to that process, you may not be able to find a new tenant right away. This means that all of your rental’s ordinary expenses are now no longer compensated by rental income, further undercutting your bottom line. Whenever tenants leave at a fast rate, it becomes unlikely that you will take in any profits from your rental property.
The best means to avoid this situation is to find a way to reduce or eliminate tenant turnover. The first step is always to find good tenants and the next step is to keep them. A good tenant will not only obey the terms of their lease but will do so sensibly and meticulously. You can expect that since they care about the property’s condition, they will want regular communication with their landlord so that they can report maintenance issues and ask questions.
Lastly, a good tenant will always pay rent on time and in full each month, giving you a stable rental income for the duration that they live in the home. When you happen upon a good tenant, you should urge them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the best ways to encourage a tenant to stay in your rental long-term is to be genuinely concerned for their well-being and also treat them with respect. When you do this, your tenant will feel that they are valued as a person. These actions help dispel the notion that they are just a number on a balance sheet. Why should this be important? Valued tenants respond in kind. This means that when we value our tenants, they tend to also value the rental home– treating it with greater care.
As early as now, you can help your tenant feel valued. Start cultivating positive relations with them. Begin by having regular and productive communication. When they ask for maintenance or repairs, respond quickly and appropriately, and make sure to do all to this within the timeframe you’ve promised. Provide advance notice to your tenant when it’s necessary to enter the property. Also, make sure to ask for their schedule before setting appointments for home services. These are some ways you can show your tenant respect.
As an investor, you want your investment property to perform well– financially speaking. But as a landlord, the key to maximizing your profits is by placing your tenants first. When you understand that your most valuable assets are your tenants and not the real estate you own, you can better focus on doing things that will help you reach your property ownership goals.
At Real Property Management Citywide, we understand the value of tenants. That is why we offer Stone Mountain property management services that include finding and keeping good tenants for your rental homes. Would you like to learn more about what we have to offer rental property owners like you? Contact us online or call us at 770-733-1848 today!
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