As a real estate investor, your focus is making money from your investment. In order to do that you should be working on getting and keeping long term renters. How do you get renters to be long term? Keep them happy. Here is why that is so important.
Long term tenants save you a lot of money in the long run. How? Well you don’t have the expenses every few months, or even every year, of short term tenants or bad tenants you have to evict. Beyond eviction expenses, which can vary from place to place, but are hefty enough, there are the expenses you have with every turnover in renter.
Here are examples of some of them. First, lost rent while the property is empty. The time it takes you to re-rent the property costs you. This is the perfect example of “time is money” in action. Even one month lost rent could be thousands of dollars, depending on the type of rental and where it is located. Next, repairs and fixes of wear and tear times (paint, rugs/flooring, etc.) or property damages (holes, broken doors, broken appliances or worse). Even with a handyman or management service on call, getting the property ready to re-rent takes time. Last, expenses to advertise the rental, show the property and get it back under lease. That entails ad costs, realty fees and attorney fees.
Well managed properties
Having well managed properties will keep tenants happy and staying. That means that when they complain about an issue, your property manager or management company is responsive immediately. Even if the fix takes time, addressing their complaint then will keep them satisfied with how you, as their landlord, value them. The longer tenants stay with you, the more income you’ll gain. It’s as simple as that.
Related Resource: Learn more about How To Succeed Using Hands Free Real Estate Investing