When playing the role of the individual landlord in comparison to being a property owner who has apartment buildings and perhaps an on-site manager, there are unique challenges that will come your way. Furthermore, the challenges are even worse if you are trying to maximize what you earn from your rental property. The fact of the matter is that all real estate has issues and hassles that will pop up from time to time – emphasis on the word will. With that being said, reducing these issues should be at the top of your list.
The first rule is aim for long-term tenants. Firstly, make sure that you treat your tenants as if they are the most important people around you. Landlords who act and conduct themselves in a respectful way will usually have an easier life and more profitable properties. This does not work every time, though. However, landlords who treat their tenants well see tenants that will stay in the property longer. Every time your rental property turns over, even if a new tenant is ready to move right on it, it will probably cost a month’s worth of rent to fix and repair items that are considered wear-and-tear. This is not to mention the countless hours that would be necessary for completing the entire leasing process, such as marketing, handling phone calls, interviews, showing the property, obtaining credit reports, and creating the lease, among other things. The simple fact of the matter is that if you are trying to maximize your profits from your real estate properties, treat them wall. And this starts by conducting yourself in a way with them that is professional and courteous.
Remember the basics when it comes to keeping your tenants happy. One “basic” is keeping your cash flow up so that you can do maintenance work to your property promptly when tenants call. Other basics are keeping your property maintained, fixing issues in a very reasonable time frame, not charging your tenants for things like plumbing, and asking reasonable rents. In fact, if you ask for rents that are maybe even a little under the market rate, you will have a large applicant pool. This will help you to choose the best credit quality group of potential tenants. With issues that arise, it would benefit you (the landlord) to compensate the tenants if the issue turned out to be a big hassle for them. Last but not least, another basic is rewarding good tenants by doing minimal rent increases.
Keep these tips at the edge of your mind. They should help with minimizing vacancy periods as well as costs. Plus, if you pick reasonable people to live in your property, based on these steps, your real estate investment (the rental property) will help finance your golden years!
After all, this should definitely be the goal of anything you are going to put your money, mind power, and time into. If it is not going to pay off for you, then it is probably not worth doing for you.