For the majority of Laguna Hills rental property owners, their most valuable asset is real estate. But on the flip side, if you affirm that the definition of an asset is something that generates cash flow, it would be that your most valued asset isn’t your property but really your tenant. Since after all, a vacant rental house by itself induces no rental income; you need rent payments to gain a profit.
Rental property investing is a business, and very much like all businesses, you need loyal and satisfied customers to be successful and booming. In the business of rental real estate investing, your “customers” are your tenants, which makes caring about them and guaranteeing they are satisfied and ecstatic in the rental home your top priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most prevalent explanations rental property owners perceive a considerable drop in their annual cash flows. Having a vacant rental property, even for a bit period of time, goes along with an extensive list of added expenses, from cleaning and repair costs to lost rent.
It can take longer to find a new tenant, with all the advertising costs, background checks, and other expenses in connection with that process. Moreover, all of your rental’s ordinary expenses are now no longer offset by rental income, at the same time disrupting your bottom line. Indeed, the more often your tenants leave, the less you will have any profits from your rental property.
The process to avoid this situation is to try to do what you can to reduce or eliminate tenant turnover. The preliminary step is to find good tenants; the following step is to keep them. A good tenant will not only meet the terms of their lease but definitely will do so heedfully and conscientiously. They will require regular communication with their landlord to inform them of maintenance issues and ask matters on the account that they care about the property’s condition.
One final note, a good tenant will pay rent on time and in full each month, giving you a secure stable rental income for as long as they settle in the home. By the time you find a good tenant, you should do all you can to encourage them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the best means to get a tenant to stay in your rental long-term is to address and deal with them with concern and respect. In this way, you are helping your tenant feel valued as a person rather than just a number on a balance sheet. Each time tenants feel valued, they are more ready to respond in kind by caring about and for their rental home.
You can help your tenant feel valued by establishing a positive relationship with them built on steady, efficient communication. When they call out for maintenance or repairs, respond quickly and properly, and address the issue within the contracted timeframe. Show your tenant respect by giving advance notice as soon as you need to show up on the property, and all the time, ask for the tenant’s schedule just before making appointments for home services.
As an investor, you need your investment property to perform well by the numbers. Nevertheless, as a landlord, you maximize your profits by putting your tenants first. By realizing that your tenants, and not the real estate you own, are your most valuable assets, you can more effortlessly prioritize carrying about the things that will make you get and achieve your property ownership goals.
At Real Property Management Agile, we understand the value of tenants. This is the reason we impart Laguna Hills property management services that constitute finding and keeping good tenants for your rental homes. Would you be interested to learn more about what we have to offer rental property owners like you? Contact us online or call us at 949-503-5300 today!
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