A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Good Tenants are the Bread and Butter of Landlords
Every business, large or small understands that in order to
survive, they need to find the "Bread and Butter" product or service that will keep
their business profitable. For years and with all the products that McDonalds
have tried on their menu, French Fries and Coca Cola is their Bread and Butter.
For an investment property owner who makes money renting out property,
Good Tenants are their Bread and butter.
In the Property Management business, I see first hand how
property owners make mistakes when it comes to keeping good Tenants. So often
owners look at the short term and forget how their money is made. Renting out a
property is not a get rich quick investment and thinking short term may cost
you, not only some money, but can get you out of the business all together.
Keeping the Bread and Butter
In this high rent atmosphere, especially in Southern California,
Landlords see the opportunity to pad their profits and there is nothing wrong
with getting the most out of your investment, but the way you do it can make
the difference between increasing your profit and losing money.
In the past, I have talked about how long term Tenants are the
best way to make money. The more turnover you have the more costly it becomes.
Sometimes turnover is needed and a Landlord should not be held hostage by worrying
about having a vacant property, but turnover because of bad decisions is a very
bad way to run your business.
What is a good Tenant?
Let’s talk about what makes a good Tenant. First, a good
Tenant always pays the rent on time. There are Tenants who are like clockwork
and you can count on their check the same time each month, no question, but
paying on time, while very important is not the only thing that makes a Tenant
gold.
Having a Tenant that takes care of the little things without counting on
the Landlord, is also very important. I have Tenants who pay on time, but call
about everything and they expect the Landlord to babysit them, those Tenants,
even though they pay on time, they may be more work than they are worth.
A good
Tenant also takes care of the property. When I go to properties and see that
the property is clean and well maintained, it makes my job much easier, but if
I go to a property and it is UN kept, then that is not a good Tenant.
The last
thing on my list of what makes a good Tenant is good communication. I don’t have
to hear from a Tenant all the time, but I want to hear from them when it is
important. Just because a good Tenant takes care of the little things without
complaining, does not mean I don’t want to hear about the bigger things before
they become problems. I don’t want to have a Tenant avoid calling me when there
is a leak just so they don’t bother me. Knowing when to call is a big part of
being a good Tenant.
Keeping a Good Tenant
Keeping that Good Tenants is the Bread and Butter of
Property Management and understanding what is important to those Tenants will
be vital to making them want to stay. When I talk about looking past the short
term gains and thinking about the long term, making sure those good Tenants are
happy is the key to having a successful property rental business.
Communicating
with the Tenant is key. If you need to raise the rent, make sure the Tenant is comfortable
with the increase. I have mentioned before in other articles, that making small
incremental increases may be the key to making the Tenant accept the increase
without leaving the property. Some may say that a Landlord should not be
dictated by the Tenant, but remember, if McDonalds is going to raise the price
of their fries, they do extensive research in how much it will effect sales,
the same goes with a Landlord. The research the Landlord must do is how an
increase in rent will affect the Tenant. If the Tenants accepts the increase
and stays, no problem, but if the increase forces the Good Tenant to go, then
the Landlord needs to make sure the increase is worth the loss of the good
Tenant.
Making sure the property is well maintained, if something
needs repair, don’t delay. The one thing that drives Good Tenants crazy is if
their requests are ignored or the Landlord drags their feet. You don’t want to
lose a good Tenant due to neglect.
The single best way to keep a good Tenant in the property is to
make them feel at home. You want a good Tenant to feel as though the Home is theirs
and no matter what happens, they don’t want to leave. If you can get a Tenant
to feel attached to the property, it will be much harder for them to leave,
even if the rent is raised. The best way to make a Tenant feel at home is to
respect their privacy and respond to their needs.
If you have a good Tenant, you want to keep them in the
property as long as possible. Just as Fries and Coke keep the registers ringing
at McDonalds, good Tenants are gold when it comes to rental property owners.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.