There are a lot of unique challenges in maximizing the money you earn on your rental property being an individual landlord. Here at Property Force, we teach and work with many small scale landlords in managing their property to make the most money with the least possible amount of hassle, as real estate related businesses will always have issues. Helping you reduce and contain these issues is our priority. Here’s a list of things to remember when you have your own investment real estate.
Look for Long-Term Tenants
You need to treat your tenants like they are the most important people in your life, and since your tenants will probably be your main source of income, they really will be one of the most important people in your life. Conducting yourself in a more professional and respectful manner will definitely make your life a lot easier and your properties more profitable. It may not work immediately every time, but if you choose this strategy it will be successful in the long run, because treating your tenants well will help you keep them in your property longer. Think of it this way, every time your rental unit turns over, you will probably spend a month’s worth of rent (8% of yearly income) fixing and repairing normal wear-and-tear items, countless hours completing the leasing process, advertising, phone calls, interviewing tenants, showing the property, getting your next tenant’s credit reports, drafting and discussing the leases, move in day, etc. It’s a whole lot of work that will take a lot of time, and time is money. So why don’t you just try to keep your tenants for as long as you possibly can by treating them really well, right? Treating you tenants right can mean partnering with a professional Bay Area Property Management firm for them to call when there is a problem. Do you want to take that call on Sunday when the plumbing breaks or a tenant locked themselves out? Are you the one personally solving issues between tenants and do you have the right liability insurance to put yourself in that position. We are a fully licensed and insured Bay Area Property Management firm with 24hr systems in place. Our maintenance partners are fully licensed and insured contractors answering the after hour calls. Our relationship with these Bay Area contractors allows you the owner to get four things:
Quick service from a quality license contractor.
Lower negotiated hourly maintenance fees
A happy tenant, priceless.
You get your life back.
Here are some more guidelines to keep your tenants for a long time. Remember to maintain your cash flow to avoid angry tenants. Keep your properties well maintained and fix any issues in a reasonable period of time. Don’t try to charge your tenants for items like plumbing or repairs. Just pay for it because tenants don’t intentionally destroy appliances, especially appliances they need. Another guideline is to ask reasonable rents, maybe even a bit underpriced, so that you’ll have a large group of applicants to choose from. This will help you in selecting the best credit quality group/s of people that you believe will be good tenants. If there are problems with the space, deal with your tenants fairly and compensate a reasonable amount if it’s a big hassle for them. That way, you keep them happy, and that makes them want to stay and it will keep them paying for the rent. If your tenants pay on time, take care of your property, and are generally good tenants, reward them by keeping your rent hikes to a minimum.
Staying true to these guidelines should help you reduce your chances of having vacancies, help you reduce the money you spend for advertising, and help you have tenants who will take care and maintain the good quality of your property. Want to learn more tips and guidelines into becoming a successful tenant? Please contact us. After reviewing all the requirement of landlords in your specific neighborhood you may decide to work with a professional Bay Area Property Management firm. We offer a number of different services from just finding a qualified tenant all the way to helping one purchase a cash flow positive investment property and placing tenants. Call us today as we look forward to having an opportunity to service your real estate investment needs.
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