Keeping tenants happy means keeping your money! An income property can be defined, as a property an investor purchased or developed that will generate an income to its owner through leasing, renting or reselling. An income property like all businesses and ventures has a source or an output that it feeds on to create a positive cash flow.
In real estate, that source is basically tenants and potential investors. The tenants are the most important factor of owning a successful income property. Without tenants, most property owners would spend their entire lives owning property just to resell it when its value increases. The focus point here is how to offer a unique experience for your tenants which eventually makes your income property more profitable because of demand. Here are 6 important factors to keeping income property tenants happy and adhering to the highest standards.
1. Show details to agreement, legalities and rules.
First impressions are important. Communication about the agreement and how the conversation is conducted will surely give a positive vibe to the potential tenant. The preparation from the income property owner to prepare a legally biding contract shows organization and dedication to make them happy by laying out a set of rules that serve both parties.
2. Be available.
Being there for your tenants in person while they are living in your property makes a personal difference for tenants because it just shows them that their landlord cares about their well-being and comfort.
3. Stand out among competitors.
Turning your investment into an income property one is not easy when there is a lot of competition in the market. Most people are opening up to the idea of real estate investments to generate income. To offer a different house than what people usually see on the market is not that hard to achieve. It all depends on the culture, location and climate. It all comes down to the creativity of the landlord on creating an in-demand property that keeps tenants happy.
4. Provide all the bells and whistles.
All tenants want to live in a house that has full functioning utilities and equipment. It is normal that a tenant will be dissatisfied with the landlord’s unwillingness to address these issues if they ever arise. Therefore, it is absolutely imperative that a landlord is able to address all issues affecting the tenants as quickly as possible to ensure their comfort and satisfaction. This way the tenant will also have the mutual feeling that they should be punctual with rental payments. A satisfied tenant that sees the landlord making the effort will be more than willing to renew the lease as soon as the opportunity comes up.
5. Add small touches.
For short-term rental income property owners, there are many ways to make a guest feel their host is concerned about their stay. In some Airbnbs I have stayed at, the owners would leave many leaflets that would help me in finding my way around the area in terms of pharmacies, restaurants, grocery stores and more. These could be lifesavers when you are in a new area for the first time.
6. Reward tenants.
Establishing a system that could reward loyal tenants can be extremely helpful in gaining their trust to stay longer. In the end it is all about having an income property that keeps generating money for you as the landlord. Having this system of rewards will make you also stand out among other property owners because word of mouth in real estate and rental is a very fast and important way to advertise your place. For example, rewarding tenants who re-sign their lease and stay longer with you by getting them a bigger TV or a barbecue grill would go a long way in making them see how much you value their happiness and comfort in your property.
7. Give them their space.
Even if a tenant is renting a house, they still want it to be home-like, a place of comfort and peace of mind. Some landlords however violate this by invading the privacy of their tenants on a regular basis. This ultimately pushes the tenant to seek a different place and it will only generate bad reviews for your income property. It is always advisable to give the tenants their own privacy, and to ask for permission beforehand to check the place or to be there to repair something. These simple rules of politeness and manners mean everything to the tenant.
These are the basic ideas that every income property owner should follow to see a rise in the demand of their property through the satisfaction of the tenants. By achieving this, you build a reputation of uniqueness that makes you edge all your competitors in a very competitive market.
Remember, a happy tenants means avoiding vacancies, damages, and negative cash-flow!