A.D. Cantelmo Property Management Company
Our Business is Property Management in Orange County California
What
do successful Real Estate investors know that makes them profitable?
Being in the Rental
Property Business can be a very good and profitable investment, but not all people who
enter this business make a profit. Now there are many reasons that one may not
be as successful as others when it comes to rental property. There is one big
secret that separates the successful investors from the others.
KEEP YOUR GOOD TENANTS FOR THE
LONG TERM!
That’s it! That is the secret.
OK, it’s not much of a secret, but it does separate the successful investors in
the rental business from many of the unsuccessful ones. So the question is why
do so many people who own rental property overlook the obvious?
In my business of Property
Management in Orange County Ca. One of my main goals is to retain good Tenants
for the long term. Now, that actually does not help the bottom line for my
company. Property Management Companies, make money when they place new Tenants,
so every time, I extend a lease, I lose money, but my job is to do right by my
clients, so keeping those good Tenants is a very important part of my Business
plan. Landlords should put effort into keeping those Tenants, because every
time you move a Tenant out, it cost you money.
The Cost of low retention
Think about how much work it
takes to get a new Tenant. You first have to get the property ready for the new
Tenant. Even if the old Tenant kept the property in good shape, there will
still be things that need to be done. Then you need to get the word out that
your property is available. If you’re lucky, you can just put a sign out, but
it may take more and if you use a Property Management Company, you are going to pay a
commission. Then, you need to hope that you can rent the property quickly and
not have a vacancy for a long period of time. After you add up the time and
money it cost you to rent the property, think about what it may have taken to
retain the old Tenant.
Now, there may have been nothing you could do to keep
the Tenant, but you really need to make the effort and more times than not,
your effort will pay off.
What are some ways that
you as a Landlord or Property Manager can entice a Tenant to stay?
Well, first of all, treating the
Tenant well and keeping the property in good shape throughout their Tenancy is
a good place to start.
Next, make sure you pay attention to request from the
Tenant. Whether it is for repairs or other issues listen and let the Tenant
know that you care about their request. The request may or may not be reasonable,
but sometimes a Tenant just wants to be heard and know that they are not being
ignored.
Maybe the most important way to keep a good Tenant is to
keep the property affordable. Sometimes, even though your property may be worth
a little more per month then the Tenant is paying, if the Tenant is a good
Tenant, then making a little less each month may be worth it. At least, talk to the Tenant before you raise
the rent. You may be able to compromise and both come out ahead.
If financially possible, make a few upgrades to the
property. All of us enjoy nice things and Tenants also enjoy when the property
gets a little facelift. Now it is not always financially possible for a
Landlord to invest in upgrading the property, but if it can be done little by
little, it will be a very good long term investment.
Always respect the privacy of your Tenants. You want good
Tenants to feel as though the property is their home for the time they are
living there. If you are constantly dropping by and making your presents known,
the Tenant will not want to stay.
Lastly, always reach out to the the Tenant a few months before
the Lease is up and try and find out what their plans are. Let them know you
want them to stay and if they sign an extension early, you may even want to
offer an incentive.
Keeping good Tenants is the secret to success in the Home
Rental business, and if you make the effort to keep good long term Tenants, you
will be on your way to success.
A.D. Cantelmo Property
Management Service Specializes in Property Management in Orange
County Ca.