Most landlords understand the importance of attracting reliable, long-term tenants; a great deal of time and money can be spent finding good tenants to occupy rental properties. However, it is also important to bear in mind certain practices that will keep these tenants happy, so they feel motivated to stay.
Maintaining a relationship based on good communication is critical for landlords to retain reliable tenants. Tenants value a landlord who is upfront while remaining open and receptive. Read on for some pointers on how you can achieve the benefits of a happy tenant.
From my long years of experience in Property Management I learned that positive cash flow is king in the land lording business. My goal as a buy and hold investor is to try and maximize my cash flow. Over the years I have learned that there is one item that kills cash flow more than any other:
When talking about tenant turnover killing cash flow, I am talking about all of the processes and costs involved in moving a tenant out of an apartment, fixing it up and moving another tenant in it. These processes and costs include:
Administrative costs – The time and effort it takes to process tenants out and process new ones in.
Advertising costs – Depending on your market, you may need to run print and web based classified ads, put up signs, hold open houses, etc.
Showing Costs – Someone generally has to field the phone calls, set showing appointments, drive to the property and show it to potential tenants.
Repair costs – Could be a biggie. Ideally you would be able to immediately re-rent the unit. But that rarely happens. There is always some amount of repair costs.
Lost income costs – Of course when your apartment is vacant, it is not generating any cash flow at all, much less a positive cash flow!