For numerous Milton rental property owners, the most valuable asset they possess is real estate. However, if you think that the definition of an asset is something that produces cash flow, it could be argued that your most valued asset isn’t your property but your tenant. With that said, you can’t earn rental income from a vacant rental house; it’s necessary to receive rent payments in order to realize a profit.
Rental property investing is a business, and like all other businesses, you must have loyal and satisfied customers in order to be successful. When you are in the business of rental real estate investing, you should consider that your “customers” are your tenants. That means being interested in them and their well-being, while they are in the rental home, is your top priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most widespread basis rental property owners see a considerable drop in their annual cash flows. 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.
It can take time to find a new tenant, particularly with all of the advertising costs, background checks, and other expenses accompanying 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. It is unlikely that you will see any profits from your rental property so long as your tenants keep leaving at a fast rate.
One way to avoid this situation is to find creative solutions 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 adhere to the terms of their lease but will do so wisely and dutifully. They will be happy to communicate regularly with the landlord regarding any maintenance issues and other issues because the property’s condition is important to them.
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 come by a good tenant, you should work hard to encourage 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 important? Because, when tenants feel that they are valued, they would respond in kind. They would value their rental home and treat it with more care.
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 request maintenance or repairs, be sure to respond quickly and appropriately. Tell them your estimated timeframe and makes sure to stay within it. Show respect to your tenant by giving advance notice whenever you need to go to the property. And always ask for their schedule before making home service appointments.
As an investor, you try your best to have your investment property perform well by the numbers. But as a landlord, you must put your tenants first. This is how you maximize your profits. When you see that your most valuable assets are actually your tenants and not the real estate you own, you can prioritize tasks that help you achieve your property ownership goals.
At Real Property Management North Point, we understand the value of tenants. That is why we offer Milton 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 404-341-2102 today!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
