For a lot of Northbrook rental property owners, real estate is often agreed upon as the most valuable asset. Then again, if you say that the definition of an asset is a means of generating cash flow, it might be that your most valued asset isn’t your property but your tenant. 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.
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
According to rental property owners, the most frequent cause of a large decrease in their annual cash flows is tenant turnover. Even if you own a vacant rental property for a short time, it will likely come with a long list of extra expenses, such as cleaning and repair costs to lost rent.
It’s possible that you won’t find a new tenant immediately, what with all the advertising costs, background checks, and other expenses connected to that process. Furthermore, your bottom line is further damaged because all of your rental’s ordinary expenses are not compensated by the rental income. If your tenants leave frequently, it will be less likely that you will see any profits from your rental property.
So how can you avoid this situation? By doing what you can to reduce or eliminate tenant turnover. Step 1: Find good tenants and follow that up with keeping them. A good tenant will not only respect and follow the terms of their lease but will do so with vigilance and common sense. Since the property’s condition is important to a good tenant, they will want regular communication to occur with their landlord, to give an account of any maintenance issues and raise questions.
And finally, a good tenant will unfailingly pay rent on time and in full each month, supplying you with stable rental income for the length of time they live in the home. When you encounter a good tenant, you should gently persuade them to stay in your rental home for as long as possible.
Valuing Your Assets
One way to encourage a tenant to stay in your rental for the long-term is to treat them with concern and respect. By doing so, your tenant will feel valued as a person. They would know for certain that they are not just a number on a balance sheet for you. 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.
As soon as possible, you can start making your tenant feel valued. Start building up that positive relationship by having regular, productive communication. 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. 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, tenants must be prioritized. This is how you can 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 Chicago Group, we understand the value of tenants. That is why we offer Northbrook 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 312-265-0660 today!
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