For a lot of Oxnard rental property owners, their most valuable asset is real estate. Nevertheless, if you think that the definition of an asset is something that generates cash flow, it could be that your most valued asset isn’t your property but, in fact, your tenant. Above all, a vacant rental house by itself produces no rental income; you need rent payments to achieve a profit.
Rental property investing is a business, and exactly as all businesses, you need loyal and satisfied customers to be profitable. In the business of rental real estate investing, your “customers” are your tenants, which makes caring about them and making certain they are thrilled in the rental home your top priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most usual rationales rental property owners detect a significant drop in their annual cash flows. Having a vacant rental property, even just for a bit of time, comes with a complete list of added expenses, from cleaning and repair costs to lost rent.
It can take a long time to find a new tenant, with all the advertising costs, background checks, and other expenses pertaining to that procedure. Besides, all of your rental’s ordinary expenses are now no longer offset by rental income, similarly weakening your bottom line. The more frequently your tenants leave, the less possible you will gain any profits from your rental property.
The method to avoid this situation is to accomplish what you can to reduce or eliminate tenant turnover. The initial step is to find good tenants; the next move is to keep them. A good tenant will not only adhere to the terms of their lease but, besides that, will do so cautiously and conscientiously. They will want regular communication with their landlord to disclose maintenance issues and ask queries for the reason that they care about the property’s condition.
One final thing, a good tenant will pay rent on time and in full each month, granting you stable rental income for as long as they reside in the home. Whenever you find a good tenant, you should encourage them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the effective ways to urge a tenant to stay in your rental long-term is to handle them with concern and respect. In so doing, you are helping your tenant feel valued as a person rather than just a number on a balance sheet. Every time tenants feel valued, they definitely respond in kind by caring for their rental home.
You can help your tenant feel valued by growing a positive relationship with them built on regular, fruitful communication. When they inquire for maintenance or repairs, respond quickly and suitably, and take charge of the issue within the promised timeframe. Show your tenant respect by giving advance notice each time you need to get into the property, and oftentimes ask for the tenant’s schedule prior to making appointments for home services.
As an investor, you like your investment property to perform well by the numbers. Nonetheless, as a landlord, you maximize your profits by putting your tenants first. By perceiving that your tenants, and not the real estate you own, are your most valuable assets, you can more successfully concentrate on performing the things that will aid you to obtain your property ownership goals.
At Real Property Management Limitless, we understand the value of tenants. For this reason, we extend Oxnard property management services that comprise finding and keeping good tenants for your rental homes. Would you like to learn more about what we have to offer rental property owners like you? Contact us online or call us at 805-702-7800 today!
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