Real estate is the most valuable asset for many Lakewood Ranch rental property owners. 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 like many successful businesses, you need loyal and satisfied customers. When it comes to the business of rental real estate investing, your “customers” are your tenants and that signifies that caring about them and finding a way to keep them happy in your rental home is your priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is by far one of the most frequent causes for rental property owners to see a significant decrease in their annual cash flows. Obtaining a vacant rental property, even if it isn’t for an extended period of time, comes with a laundry list of additional expenses, like repair costs and cleaning to lost rent.
You may not be able to find a new tenant right away, especially with all the advertising costs, background checks, and other expenses linked to that process. In addition, your bottom line is undermined since all of your rental’s ordinary expenses are no longer offset by the rental income. If your tenants leave frequently, it will be less likely that you will see any profits from your rental property.
By eliminating or reducing tenant turnover, you can avoid this kind of difficult situation. Step 1: Find good tenants and follow that up with keeping them. A good tenant will not only keep to the terms of their lease but will do so cautiously and reliably. 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.
As a final point, a good tenant will regularly pay rent on time and in full each month, giving you stable rental income for the period of time lived in the home. When you come across a good tenant, you should keep finding ways to urge them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the best ways to encourage your tenant to stay long-term in your rental is to treat them with respect and also have a genuine concern for their well-being. By doing this, you’re valuing your tenant as a person and not just some arbitrary number on a balance sheet. And they will be able to feel the difference. Why is this good? Because, when tenants feel valued, they respond positively as well. They would respond by being more caring for their rental home.
You can help your tenant feel valued by establishing regular, productive communication. This goes a long way to cultivating a positive relationship with them. When a request is placed for any repairs or maintenance work, be sure to respond quickly and appropriately. Also, see to it that you don’t go over the promised timeframe. Give advance notice to your tenant whenever you need to enter the property. Always ask for their schedule before making appointments for home services. This is how you show your tenant respect.
As an investor, you try your best to have your investment property perform well by the numbers. But as a landlord, tenants must be prioritized. This is how you can maximize your profits. When you understand that your tenants are more valuable than the real estate you own, you can be more effective. Treating your tenants as your most valuable assets allows you to focus on tasks that help you achieve your property ownership goals.
At Real Property Management Sarasota & Manatee, we understand the value of tenants. That is why we offer Lakewood Ranch 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 941-225-8185 today!
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