Most real estate owners or investors in real estate are in it for earning off their property investments. Why else would you want to invest your money in more property? After all, the financial transactions involved in acquiring real estate property can beat your budget.
Owing to the growing demands of a modern lifestyle, people look for alternate ways for securing more stable income in order to enjoy life and cope with the increasing costs of living. Real estate reaps returns in the form of rental income but to ensure consistency of income, it is important that the tenants stay in the house for a longer period.
Turnovers can be costly and long term tenants are a good way to keep them away. Occasionally, you might have a bad tenant who you would love to get rid of but focusing efforts in making the tenant stay will bring you greater profitability.
How do Long Term Tenants Bring Greater Profitability?
So how are long term tenants beneficial for you? Long term tenants save you a lot of costs, that’s how.
Costs can include writing up a lease, advertising, corresponding, coordinating, paying for home inspection, repairs, commissions, documentation and more. You may opt to hire professionals to assist you or do it for you like home inspectors, cleaning services, real estate agents or home stagers which add up quickly.
Significant time would also be needed to go about handling visitors, doing negotiations, hiring professionals, conducting interviews, monitoring the work progress, exchange repair requests and coordinating utilities with the new tenant and dealing with the process till closing.
New tenant means going through a huge process and a lot of things all over again. You would rather work on the current tenant and keep your hands free of these issues.
How to Make Your Tenants Stay?
Now that you understand why having tenants for a longer period is important, the next question is how can you make them stay?
A happy tenant is one whose needs are well attended to. Keep a positive attitude towards your tenants, be friendly towards them and respond to their issues. Most tenants get frustrated and leave due to poor management of their landlords.
Treating your tenants with respect and keeping your property in good condition with consistent maintenance will do the trick. Handle issues professionally and try to keep rent increments at a minimum.
