Property managers know that it is highly important to keep fantastic tenants around, but sometimes it can be a real challenge. You might already be offering a referral program for potential new tenants, but have you thought about offering programs to retain the wonderful tenants that you already have? If you are looking for a way to give your outstanding tenants a reward, there are a few ideas that you will find really handy!
Tranquility and Happiness First, it is important to know the importance of tenant retention. Tenant retention means keeping good tenants for the long term in your property, which in turn means that there are people living in your property and it is being taken care of. Most importantly, you are getting the payment on time. Tenant turnover can result in lost rents, marketing time and repairs that are required after a tenant moves out, all of which can cost anywhere between $3,000 and $5,000 (sometimes even more). Good tenants give you a steady income and look after your property, and thereby, make your life easier.
You can use many strategies to analyze tenants, but the best tactics are perhaps the ones that make your tenants stay and that is exactly what a tenant retention program does. When you reward marvelous tenants, you are keeping a steady and uninterrupted stream of income.
However, remember that apart from rewards, other factors play a role in keeping tenants, such as your property’s location, rent payment amount, benefits and services you offer and other circumstances that are beyond your control. A tenant retention program is your way of showing your gratitude and appreciation and that will strengthen the connection between you and your tenant.
Given the right circumstances, your tenant retention can be boosted with strategic implementations of tenant retention programs. Anything that helps you keep tenants is a wonderful thing. But what exactly is a tenant retention program?
These strategies are a creative way to reward tenants and make them want to stay. What are some of these clever and creative strategies?
Knowing more about Tenant Retention These strategies are usually based on a couple of platforms. For example, a reward program is one way to say “thank you” to your tenants for making timely payments. A gift certificate or gift card for a year is a popular form of this program. Offering a credit to their account is also a sagacious idea.
Offering a referral program is another astute way to make your tenants want to stay. These reward programs allow your tenants to earn cash every time they refer another tenant. Remember to stipulate that the tenant they refer must meet the rental criteria as well as sign a lease.
The Clearest Reward Like you, tenants love a little extra cash! With rewards and referral programs, you offer tenants an opportunity to earn extra money and show that you care about them at the same time.
When setting out referral and rewards program guidelines, remember to include all criteria in a disclosure. Let your tenants have fun, and make sure you cover all the bases. These programs will keep your tenants happy. When you boost your tenant retention rate, you receive a steady stream of income and peace of mind with the knowledge that there are valued tenants living in your property!
If you own a rental property, it is time to give it a few upgrades, so that you can get more monthly income. These upgrades can increase the value of the property and also make it more attractive to prospective tenants.
1.Landscape Your Garden It is always easy to go overboard while landscaping the garden of your rental property. However, refrain from it. Remember tenants want to visualize themselves living in the place. So, if you go overboard and make the garden too showy and decorative, it may frighten or push away some tenants.
They may not like the amount of maintenance that the garden requires. Hire a professional landscaper to prune and trim the trees and shrubs and mow the lawn. You also can get the landscaper to plant a few low-maintenance plants in the flower beds. Hang a few flowering plants in baskets at the front entrance. Also, place a few potted plants near the doorway. These few landscaping tricks will make your property appear more welcoming.
2.Install a New Front Door The door will be the first thing in the house that prospective tenants will see and interact with. So, it pays to get a new door fixed. It gives an impression that you maintain your property well. If you think it is too much of an expense, then replace the handle of the existing door and repaint it to look new and shiny.
3.Upgrade the Appliances After your tenants move out, you may find problems with the appliances. Some problems could be due to misuse and others due to normal wear and tear. Instead of holding onto these appliances, get new ones or repair the ones that can be salvaged. Prospective tenants will love new appliances that are energy efficient and make their lives easier in the kitchen and home. It also shows you go out to ensure your tenants are comfortable. This speaks volumes about you as a landlord.
If your appliances were already remarkable and the previous tenants only lived in the property for six months or even two years, you may not have to do this. Now if they lived in the property for several years, then perhaps you may or want to go this route.
4.Change the Lighting Not only does a well-lit room look bright and cheerful, it also helps highlight the aesthetics of the room. So, if you have dull and dim lighting in your property, it is time to give it a makeover. Install bright lighting in the kitchen, family room, dining room, and living room. If some fixtures are broken, replace them. In the bedroom, stick with soft, warm lighting. Make sure the garden too is well-lit.
These are a few upgrades that will help increase the value of your rental property. Speak to your property manager to find out other ways to make your property more tenant-friendly and attractive.
Turning into a landlord doesn’t mean that you will be rolling in money or piling it up like the characters in Breaking Bad in a hidden storage rental unit and also have the perfect tenant. The real estate market across the country varies and hence, the kind of tenants your property attracts will depend on the location, amenities around the property, and the special features your property has. Being a landlord can be challenging and at times, frustrating. But if you succeed, it is a steady passive income stream.
However, before you decide to take out a mortgage to buy a property and turn into a landlord, there are few things that you should know and take into consideration.
You should have Cash, Lots of It
Banks are no longer doling out mortgage amounts freely because of the Barney Frank and Fannie Mae situation and Dodd/Frank and so on – the happy days are over with. They have tightened their lending procedures and this means it is necessary, you have the 20% down payment ready, should you want to turn into a landlord. And, if you cannot afford the minimum 20% then you are definitely not cut out to be a landlord yet.
It is not just about buying the property. You also have to have money to fix and repair the property to make it attractive for prospective tenants. So, if you want to turn into a landlord, make sure you have plenty of cash available.
It is a Risky Business Endeavor
Becoming a landlord is not just about making money from the rent. You should also have a high appetite for risk. Owning a rental property comes with its own share of risks, such as non-payment of rent, damage to the property, prolonged vacancies, tenant evictions, and lawsuits. If you have the ability to take these risks, you should do just fine. Otherwise, this is the wrong business to get into.
Your Property can get Trashed
The risk of bad things happening is omnipresent in the world of business. However, there is a reason why people who own properties don’t always turn into landlords. You may already have read about the way properties get trashed by tenants before they leave or during the tenancy.
Did you know these stories are often true? You will be surprised at the kind of damage tenants can leave behind. If this happens to you, your passive income stream will dry up until your property is fixed. Depending on the amount of damage, it could be a few weeks or months. You may even rise to new heights of frustration as well!
So before you decide to buy your property, be aware of what awaits you. Educate yourself and ensure you have the stomach for it. If you still want to turn into a landlord, go right ahead. You also can collaborate with a property management company to help you out and handle all aspects of your property. This will reduce your stress and work and allow you to focus on other business and personal endeavors that you may have.
As a property management company, you will be handling properties of different clients. This involves a lot of paperwork that is time consuming and labor intensive. At the same time, you also have to ensure the properties you are managing function smoothly and tenants and landlords are happy with your services. One part of property management is taking care of security deposits. Since you are legally bound to return the security deposit, there is no room for mistakes.
Understanding the Laws Related to Security Deposits
The security deposit is meant to cover any damage the tenant may cause during their stay. Some states in the country mandate the landlord does not take more than a month or two of the rent but the amount depends on the state where the rental property is located. It also is important to note that many states in the US make it necessary for a security deposit to be placed in a separate account, and there are some states that require landlords to pay an interest on the amount.
So, as a property manager, you should be aware of the state laws pertaining to security deposits and keep the landlord apprised of them. Also, make sure the landlord knows the amount can be used just to cover unpaid rent and repairs and/or cleaning that occur over and above normal use.
Using Rental Property Software to Keep Track of Security Deposits
It is important you realize states and local communities have their own laws regarding security deposits. Hence, if you have clients spread over different cities, it can be tough to manage these deposits, as the laws change from city to city. A rental property software program can not only help you keep track of the various properties, you also can use it to obtain details of the security deposits and the deadlines for returning it to different tenants.
The property management company and landlord have a legal obligation to return the deposit within a stipulated period of time after the tenant vacates. The software allows you to keep track of this timeline, so that you don’t have to keep referring to your notes and planner. You will be sent, well, it is automatic, an alert a few days before the deadline to remind you when it is time to return the deposit.
You also can use the software to figure out trends when inflow and outflow of tenants increase. Usually, this happens during specific periods, such as when the new school year begins. By keeping an eye on these trends through the software, you will be prepared to manage the security deposits of multiple tenants seamlessly.
A Sagacious Purchase
As a property manager, if you are not using rental property software, you may be struggling with your work, particularly when it comes to processing security deposits. Obtain some outstanding and impressive software today and make your work and life easier.
If you are a first-time or even a seasoned landlord, it makes sense to work with a property management company. Remember being a landlord is not easy and you will have to don multiple hats simultaneously on top of the ones you are already wearing. It can make it daunting and overwhelming to find your way as a landlord. Here are some reasons why it makes sense to join forces with a reliable and dependable property management company.
The Sheer Work Involved
While it makes sense to hire a property management company if you have many properties, you can also flip the switch for this collaboration with a single property in your investment portfolio. As a landlord, you will have to vet prospective tenants, maintain the property, perform repairs, handle emergencies, advertise, and market your property when tenants leave and also handle rent collection. This is a lot of work and can make it tough to manage everything.
A property management company has experience in this field and has professionals to handle every aspect of the property. Such a company has a list of contractors to handle maintenance and repairs and also knows how to tackle tenants and their complaints.
Smooth Flow of Income
While a part of the rent should be kept to handle and pay for repairs, you won’t have to chase tenants for the rent each month. This part is handled by property management professional, so you always have smooth flow of income. Furthermore, the professional will know how to ensure 100% occupancy, so that your revenue stream is not disrupted.
They work hard to make owners, you, happy.
Knows Tenant-Landlord Laws
Property management companies know the laws of the state they operate in. And, this makes it easy to handle tenants without getting on the wrong side of these laws. As a layperson, you may not have sufficient knowledge of tenant-landlord laws and this could spell disaster for you if you don’t work within the ambit of the law. And, if you have to go to court, it can turn into a very expensive and long-drawn process. In the meantime, you will be unable to evict the tenant and not earn any income from your property.
Prudent landlords prefer working with property management companies because of the ease it offers. It allows them to focus on their other business interests without getting hassled by the rental property or tenant issues. So, if you want to enjoy the benefits of being a successful landlord, it is time to find a cogent and dependable property management company. Beware, some are better than others!