How Landlords Make Money By Keeping Tenants Happy
For the real estate investor who is a landlord, keeping tenants happy means keeping reliable tenants. And that means overall profit, less turn over, and less wear and tear on the building.
First of all, it’s important to attract the right type of tenant. Even in a market where 100% occupancy is difficult to attain, you want the type of tenant who will pay their rent on time, maintain the premises, and inform you of any repairs that are needed. While other landlords are struggling to rent out their apartments, yours are occupied – by good quality tenants.
Communication is the key here. Make sure that your tenants have a clear understanding of rules, lease, payment procedures, reporting a problem. Getting in touch with management should not be difficult for them. Also, make certain that you tell them up front about things they need to know. For example, if you are planning on painting the hallway, give them written notice in advance so they are prepared to be careful.
If there are changes coming to the lease, or rent increases, be sure to communicate these with sufficient warning and in writing. While tenants may be unhappy in the short term about paying more, many will understand that rent increases that comply with local laws are to be expected. Sometimes it can be beneficial to give an incentive for those renewing their leases when an increase is expected. Some landlords will include a free carpet cleaning, install a kitchen backsplash, paint an accent wall, or offer a discount on the first month of the new lease. These perks have the added benefit of making certain the property is maintained while helping the tenant to feel special and valued.
Offering a grace period within your states legal limits is appreciated by tenants. It needs to be clearly understood in writing that rent is due on the first of the month, and considered late after a specific day, such as the 3rd, 4th, or 5th.
Finally keeping the property well maintained, including plumbing, regular pest extermination, outside areas including sidewalks and roadways, and routine repairs will encourage long term stable tenants to remain.
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