For a lot of St. Paul rental property owners, real estate is often agreed upon as the most valuable asset. On the other hand, it could be argued that your most valued asset isn’t your property but your tenant, especially if you believe that the definition of an asset is something that generates cash flow. In any case, rental income can’t be generated from a vacant rental house. In order to realize a profit, you need to get rent payments.
Since rental property investing is a business, you must have customers that are satisfied with your service which will one day lead to your success. 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
One of the most predictable reasons rental property owners see a sizeable reduction in their annual cash flows is because of tenant turnover. Just temporarily having a vacant rental property is enough for it to come with a lengthy list of added expenses, like repair costs and even to lost rent as well.
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. It is unlikely that you will see any profits from your rental property so long as your tenants keep leaving at a fast rate.
The best means to avoid this situation is to find a way to reduce or eliminate tenant turnover. The first step towards eliminating tenant turnover is by finding good tenants. The next step is to persevere at keeping them. A good tenant will not only obey the terms of their lease but will do so sensibly and meticulously. It should come as no surprise that they will want regular communication with their landlord. This is necessary in order to report maintenance issues and pose questions because they are concerned about the property’s condition.
To conclude, a good tenant can be relied upon to pay rent on time and in full each month, affording you stable rental income for the extent of time spent 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 long-term stay is to make sure you have a genuine concern for your tenant and to treat them with respect. When you do this, you are validating your tenant’s value as a person rather than just being a figure on a balance sheet. 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 right now. Begin by establishing regular and productive communication. This would be a great start to cultivating a positive relationship with them. When they present an issue or problem, respond quickly and appropriately. Make sure that whatever maintenance or repairs are needed are completed within the promised timeframe. Provide advance notice to your tenant when you have to enter the property. Also, see to it to ask for their schedule before you set any appointments for home services. There are some ways you can show respect to your tenant.
As an investor, you work hard to make your investment property perform well by the numbers. But as a landlord, your tenants must come first. This is how you maximize your profits. By understanding that your tenants (not the real estate you own) are your most valuable assets, you can be more focused on the tasks that help you accomplish your property ownership goals.
At Real Property Management Fidelis, we understand the value of tenants. That is why we offer St. Paul 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 844-365-7368 today!
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