By the end of 2020, the number of renters in the US dropped to 42 million from 43.5 million in 2019, according to iProperty Management. This is likely the case elsewhere in the world as well, as people invest in homes or move back in with their parents. Homeownership and renting come with their own strengths and weaknesses. But the common pitfalls that landlords fall into tip the balance in favor of owning houses. If you are a landlord and would like to know how to make renting on your property as ideal as possible, keep these three principles in mind.
Consider Your Rent Rates
Above all other factors, tenants are concerned with rent, and the likelihood of you raising it. It should come as no surprise that lower rents correspond with happier tenants. You might think that by lowering the rent, you are trading profits for tenant satisfaction. However, while maximizing your rates is great for short-term profit, it also decreases your tenant retention. In the end, your best move is to charge rent below the market average, in order to make your property as attractive as possible. This makes vacancies virtually a non-issue and ensures you have a consistent client base to draw income from.
Keep Property Functional & In Order
To justify the rent, certain living standards must be met. This primarily entails ensuring the cleanliness of your property and keeping things such as lights and water lines in good working condition. Keep contractors on speed dial to quickly resolve issues as soon as you are alerted to them. This includes services like cleaning companies, as you will need people to clean up after a particularly messy tenant vacates a unit. They are also a big help if your premises are too large for you and your staff to clean up on a regular basis. Try to do preventative maintenance and general cleanup at least every two weeks. Maintaining a livable space also means you have to see to it that the people living on your property cohabitate peacefully. The chief obstacles to this goal are uncouth tenants and external disruptions such as neighboring properties. Address these issues as soon as you can. If you have to refuse tenancy to an individual who cannot live amicably with others, it is best to do so for the good of the many.
Maintain A Positive Relationship With Tenants
Even with perfect living conditions and reasonable rent rates, tenants can still be put off by your demeanor if it suggests that you are someone who holds their accommodations in the palm of your hand. It is important to make sure that your tenants are comfortable with living on your property. Where possible, show leniency in appropriate situations, such as when a tenant is having trouble making rent. Be as transparent as you can possibly be in order to put them at ease around you. Respect their privacy. Notify them before you pay them a visit, and keep such visits to a bare minimum.
Being a landlord can be tiring work especially if you are just starting out and haven’t worked out all the kinks yet. But it is easy to get in a groove once you are used to the flow of it all. You basically just have to do everything a good neighbor would do, but with promptness and professionalism when it comes to the concerns surrounding the property.