For a lot of Rohnert Park 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. 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. 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
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. On top of that, all of the rental’s ordinary expenses are no longer compensated by the rental income, further hurting your bottom line. Whenever tenants leave at a fast rate, it becomes unlikely that you will take in any profits from your rental property.
One way to avoid this situation is to find creative solutions to reduce or eliminate tenant turnover. You can start by finding good tenants and then endeavor to keep them. A good tenant will not only follow the terms of their lease but will do so prudently and diligently. 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 encounter a good tenant, you should gently persuade them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the best ways to encourage a tenant to stay in your rental long-term is to be genuinely concerned for their well-being and also 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 should this be important? Valued tenants respond in kind. This means that when we value our tenants, they tend to also value the rental home– treating it with greater care.
As soon as possible, you can start making your tenant feel valued. Start building up that positive relationship by having regular, productive communication. 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. Show respect to your tenant by giving advance notice whenever you need to go to the property. Always ask for their schedule before making home service appointments.
As an investor, you want your investment property to perform well– financially speaking. But as a landlord, you must put your tenants first. This is how you maximize your profits. When you understand that your most valuable assets are your tenants and not the real estate you own, you can better focus on doing things that will help you reach your property ownership goals.
At Real Property Management SonoMarin, we understand the value of tenants. That is why we offer Rohnert Park 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 650-969-4800 today!
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