Nibletz Staff
Every entrepreneur and business-inclined individual is interested in learning about ways to make more money. When it comes to profits in the rental and real estate business, it’s all about the relationship you hold with your tenants. Those who invest in real estate know the importance of hanging onto a long term tenant. This helps avoid costly turnovers that require a great deal of repair, decreases the amount of vacancies, and reduces your overall stress. Use these strategies to improve your landlord-tenant relationship and reap the rewards.
Quick Response
As a landlord, it’s your responsibility to ensure your rental property is comfortable and habitable for your tenants. That’s not only a courtesy; it’s the law, and failing to do so could result in severe legal penalties. Keeping up a positive relationship with your tenant means being responsive, and working to make sure any problems are solved quickly and efficiently. If being on call for situations like a burst water pipe or broken appliance seems like too much responsibility, or you simply don’t have the time or agency to ensure these types of problems are dealt with promptly, it’s important to hire the help of a professional property manager. They can deal with any issues that come up with immediacy, and while you’ll lose a portion of your rental income to acquire their services, the responsibility off your shoulders is often well worth the investment. Property managers are a wise choice because they are well-versed in the ins and outs of the rental process, and can ensure your tenants have the most professional experience possible, while ensuring your personal interests are protected.
Competitive Pricing
While rent increases are often a necessity, be sure you’re strategic with the amount you increase your monthly rate. Don’t make your tenants feel as if they’re being taken advantage of. Use sites like Zillow to get an idea of competitive rates, and make sure your rental property is worth the price you hope to charge. If you want to offset the less than savory news that rent is going up for current tenants, be sure to offer rental improvements. That could mean installing a new washer and dryer in the property, upgrading the appliances in the kitchen, or performing landscaping work in the front yard to improve curb appeal.
Be Communicative
One of the most important habits for profitable tenant relationships is clear and consistent communication, from the moment they sign the lease until the day they leave. This means explaining the provisions of the lease carefully and laying out expectations for their tenancy, and it requires promptness and professionalism in every interaction. Always return phone calls as quickly as possible (avoid texting, as this can lead to a great deal of miscommunication flubs), and always give fair warning before coming over to the property to speak in person.
Allow for Tenant Personalization
Many landlords outline provisions in their lease agreements that forbid tenants from making permanent changes to the property. There are valid reasons for this provision, but it can also lead to a distance between you and your tenant, and play a significant role in their overall happiness with the property. Allowing tenants to paint the walls, bring in their own furniture and perform other cosmetic changes to the space may cause you to pause, but remember that you can always write provisions that require tenants to return a space to its original condition, or risk losing their security deposit. This will enable a renter to make the space feel more like home. The more attached a tenant feels to a space, the more likely they are to keep it in great condition, and the less likely they are to leave.
Learning how to be a good landlord is a matter of reassessing your tenant practices, and looking for ways in which you can improve. Renting out a property is a business, and every business can benefit from improved customer service. Be sure your tenants feel appreciated and respected, and you’ll find improved relations also improves your bottom line. Securing and retaining long-term tenants is a cost effective way to avoid the time and money spent on turnovers, and helps avoid the real estate investor’s dreaded prospect of filling a vacancy.
