As a rental property owner, it is important to know that your investment is not only in your property, but also your renter. Finding and keeping good tenants will save you a great deal of stress and money in the long run. Good tenants will also take care of your property and let you know about any maintenance issues. Importantly, they will have a reliable source of income that will not disrupt your cash flow.
It is important to not underestimate the value of tenant retention. Every time there is tenant turnover, you lose money while the property sits vacant. You must also go through the task of finding another trustworthy tenant. Here are a few tips for retaining good tenants:
Do Not Overcharge
While you may be tempted to set rent high in order to get more cash from your investment, this practice can actually harm your tenant retention rate which will cost you more money in the long run. Setting your rent too high can also discourage good tenants. Be wary of renters who are willing to pay high above the average market rate. They may be willing to pay to compensate for a poor rental history.
Do Not Undercharge
Though it is important to not overcharge your renters, it is also important to not undercharge them. Setting your prices too low could attract the wrong type of tenant; one who cares about the affordability not desirability of the property and probably will not take care of it. Set your rent to gradually adjust with market value over an extended period of time. If you decide to sell your rental property, it is likely a potential buyer will want to know its rental yield. Setting rent too low could affect the property’s market value.
Quality housing is key to retaining good tenants. It is your responsibility to provide safe and clean housing. Make necessary repairs quickly, having someone to take your tenant’s calls 24/7 in case of emergencies. Do not be stingy when it comes to repairs. Your property is an investment and should be well maintained.
Know When to Let Go
Though you are trying to retain tenants, it is important to know when to let the bad ones go. If your tenant is not acting in an appropriate manner, such as damaging the property or failing to pay rent, you can do something about it. The available options, such as eviction, depend on your state, so be sure to know your local laws.
One way to prevent bad tenants from the start is to conduct a background check. CheckPoint Screening is happy to provide an extensive array of screening services, from criminal to credit history. Choosing the right tenant not only better protects your property but also any other tenants. Do not leave your choice up to incomplete information. Rather, get everything your need to make an informed decision from CheckPoint Screening.