Owning, managing, and maintaining rental property comes with a lot of responsibility. Not only do landlords have the responsibility of producing a profit, they must also provide suitable housing to tenants.
Landlords who work hard to keep their tenants happy, often find that their overall costs are lower resulting in higher profits. Keeping tenants happy can result in decreased turnover and maintenance costs, while also preserving property value.
Reduced Turnover Equals Higher Profits
One way for landlords to increase profits is to decrease turnover and maximize the number of months a property is rented out. Happy tenants are encouraged to stay in a rental property longer, which lowers the landlord’s costs and increases profits.
Remember that the costs associated with tenant turnover can be high. There are marketing costs, repair costs, and cleaning costs when finding a new tenant for a property. Then, there are costs associated with showing the property and completing the lease process.
The biggest concern is owning a property that’s vacant for months, which could be the case if tenants are treated so badly that they post negative reviews about the property and landlord. Therefore, the small costs associated with keeping tenants happy pales compared to the cost of holding a vacant property for months.
Keep Your Tenants Happy
As a real estate investor, tenants can make you or break you. Angry, unhappy tenants can cost you thousands of dollars and ruin your reputation. But happy tenants, who love living in the rental home, can save you thousands while also helping you build a great reputation.
What do you have to do?
Live by the golden rule and invest a few dollars to keep tenants happy. In the end, you’ll save money, increase your bottom line, and have a more enjoyable career as a landlord.