Real estate is the most valuable asset for many Richmond Heights rental property owners. But then again, if you believe that the definition of an asset is something that creates cash flow, it may be that your most valued asset isn’t your property but your tenant. Nevertheless, a vacant rental house cannot generate rental income; you need rent payments to produce a profit.
Rental property investing is a business, and to create a successful business, you need customers that are satisfied and want to do business with you over and over again. In the business of rental real estate investing, your “customers” are your tenants, which means caring about them and making sure they are content in the rental home is your biggest 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. Owning a vacant rental property, even just briefly, comes with a lengthy list of extra expenses, like cleaning, repair costs, and 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. What’s more, all of your rental’s ordinary expenses are now no longer offset by rental income, further chipping away at your bottom line. Should your tenants leave far too often, you won’t be able to notice any significant profits from your rental property.
By eliminating or reducing tenant turnover, you can avoid this kind of difficult situation. You can start by finding good tenants and then endeavor to keep them. A good tenant will not only keep to the terms of their lease but will do so cautiously and reliably. They will want to communicate regularly in order to inform the landlord about maintenance issues and raise questions as well because they are concerned about the property’s condition.
In conclusion, a good tenant will consistently pay rent on time and in full each month, supplying you with stable rental income for the entire time they stay in the home. When you meet a good tenant, you should repeatedly entreat 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 so, your tenant will know for sure that they are not just a dollar sign in your balance sheet but that they are truly valued as a person. Why should this matter? Valued tenants value property. This means that when tenants are valued, they would pass that on and care for the rental home.
There’s no need to wait. You can help your tenant feel valued immediately. Start cultivating that positive relationship by having regular and productive communication. When there is a request placed for maintenance or repairs, you should respond quickly and appropriately. Also, make sure you resolve the issue within the allotted timeframe you promised. If you have to enter the property, see to it that you give advance notice to your tenant. Also, always ask for their schedule before setting up home service appointments. These are some things you can do to show your tenant that you respect them.
As an investor, you want your investment property to give you good numbers. But as a landlord, the secret to maximizing your profits is by giving priority to your tenants. By understanding that your most valuable assets are actually your tenants and not the real estate you own, you can make more effective decisions. Decisions that help you achieve your property ownership goals.
At Real Property Management Endeavor, we understand the value of tenants. That is why we offer Richmond Heights 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 636-244-5959 today!
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