Countless New Rochelle rental property owners are aware that their most valuable asset is real estate. 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 the end, a vacant rental house does not generate any rental income; you must have rent payments to see a profit.
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. In the rental real estate investing business, your “customers” are your tenants, which denotes that your top priority is caring about them and ensuring they are happy in the rental home.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most typical grounds for a substantial dip in the annual cash flows of rental property owners. 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.
With all the advertising costs, background checks, and other expenses related to that process, it can take time to find a new tenant. On top of that, all of the rental’s ordinary expenses are no longer compensated by the rental income, further hurting your bottom line. It is less likely that you will realize any profits from your rental property if your tenants leave often.
By reducing or eliminating tenant turnover, you can avoid this kind of situation. Your first action is to find good tenants and then work hard to keep them. A good tenant will not only follow the terms of their lease but will do so prudently and diligently. 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.
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
A really good way to encourage long-term stay is to treat your tenant with concern and respect. 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 would this matter? Because, when tenants feel valued, they are more likely to respond positively. They would treat the rental home with more care.
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 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. 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 really want your investment property to give good financial returns. But as a landlord, your tenants must come first. This is how you 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 DePenn, we understand the value of tenants. That is why we offer New Rochelle 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 866-820-9913 today!
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