Most people don’t realize the hit their bank account takes when it’s time to find a new tenant. Tenant turnover is expensive. And it doesn’t just cost money; it also costs time. After listing and marketing the property, vetting potential tenants, conducting move-out and move-in inspections, and restoring the property back to new-tenant condition, you will have invested far more than you planned.
Plus, you put your property at risk when it sits empty. If you aren’t running the AC during the summer, you create problems in your HVAC system. When water isn’t running through the pipes in the winter, they’re more likely to freeze. And if something happens to the house, like a flood or a burst pipe, no one is there to keep the problem under control. A vacant property is also more susceptible to vandalism.
To top it off, no tenant = no rent (which makes paying for these problems far less appealing).
The longer you keep a tenant content in a property, the more money (and time!) you save.
So maximize your ROI by aiming to keep tenants around for at least two years. With a few extra steps during the screening process and extra care during a lease, you’ll see your tenants stay longer and your costs go down.
Tips For Finding The Right Tenant
Before you market a property, make sure it’s a place someone wants to live. To find a good consumer, you need a good product. People want a property in great condition, with attractive landscaping, an appealing entry area, and clean carpets. You don’t need upgrades to attract the right tenants, but you do need a clean, well-kept property.
As you show prospects the house, try to get a full picture of their situation. What’s their background? Where do they work? How long of a commute is it? If you have someone moving from out-of-state, they may not know it takes an hour to get to work during traffic. Even if they’re great tenants, you’ll probably lose them if there’s a long commute.
Also, make sure you’re priced correctly. If you overprice the property, you may lease to someone from out-of-state who assumes it’s market average. But once they realize they’re overpaying, they’ll move somewhere else, and you’ll lose that extra profit by paying for the turnover.
The key is being honest about your home and how it suits the tenant. If it’s a good fit for them and you, they’ll more likely stick around.
Tips For Keeping The Right Tenant
Once you’ve found the right tenant for your property, you want to keep them happy. The best way to keep tenants satisfied is to communicate openly and repair quickly.
Great communication makes people feel prioritized. Always return calls, and keep tenants in the loop for any upcoming changes.
Then maintain your property by making necessary repairs. Sometimes owners try to delay a repair, putting off the expense as long as possible. We recommend fixing things immediately. Most repairs will need to be done eventually anyway. It’s better to take care of them quickly and keep the current tenants happy.
Finally, prevent further issues by educating your tenants on property maintenance. We send out a few letters each year to help tenants prepare for weather-related problems. We instruct them on how to prevent frozen pipes, how to set the sprinklers, and when to change the air filters. When they take care of the property, both of you will be happier in the long run.
A good tenant that stays the course isn’t too much to ask. With the right preparation and attention, you’ll keep satisfied tenants that maximize your investment.
Interested in learning more about the Tenant Services we provide? Contact us today for a FREE consultation.