When a real estate investor decides to invest in rental properties it is usually because of the understanding that it has the possibility of generating regular income.
The risk of having a vacant property that is not generating any income or having a rented property where the tenant is not paying his rent or pays irregularly is a real risk.Most tenants rent properties with the intention of renting as long as it is necessary and whilst in the property to start, build, complete and move into their own properties.
But many times, tenants are forced to move out of a property and into another property as a result of the attitude of the landlord or landlady.In many instances, if the relationship between the landlord and tenant is reasonably cordial, tenants will stay for as long as necessary. This is usually a win-win for both parties.
The landlord is assured of regular income while the tenant is guaranteed stability. He or she does not need to uproot family and business from one location to another every few months or years.
One of the key determinants of the relationship between landlords and tenants is rent. If you want to attract and retain long-term tenants, there are at least three simple rules you need to keep in mind regarding rent.
First, keep your rent at the reasonable rather than exorbitant rate. If you start on a very high note increasing it soon after could take your rent above the market rate and could be met with resistance by some of your tenants.
Second, raising rents too much should be avoided especially with existing tenants. It is easier to ask for a higher rent from an incoming tenant than to collect the market rate from a long-term existing tenant.
Sitting tenants as they are called should have their rate increased gradually. Thirdly, avoid increasing rent too often. Avoid annual rental increase .This is generally unpopular with tenants.
Every property age in one way or another. No matter how professional the finishing might be, sooner or later there will be the need to carry out some repairs. The general rule is that the landlord is responsible for the overall maintenance, which is as a result of the age of the property or the quality of the finishing.
The tenant is responsible for damages to the property that are outside the scope of maintenance. Tenants are often uncooperative with landlords that do not respond to requests to carry out repairs or who try to shift the responsibility to the tenant.
The tenants expect the landlord or his agent to respond to requests for repairs promptly primarily because the tenant is the one that will feel the pressure most if repairs are delayed or ignored.
Imagine the case of a leaking roof. If the landlord or his agent does not respond quickly to a call for repairs and it rains, the tenants flat could be flooded and his or her properties damaged. A landlord or his agent who has a reputation for responding to such requests promptly will be well respected by tenants.
It is also important to maintain a semi-formal relationship with your tenants. Don’t be too formal and don’t be too informal. If you are too informal you are likely to blur the line between the two of you and this sometimes creates complications in dealing with them in some situations.
This is one good reason why many real estate investors engage the services of professional property managers. A smart landlord should respect himself or herself by respecting the privacy of the tenant. If you are managing the property personally you need to inform the tenants before you visit the property for any inspection.
Tenants expect to be treated with respect and dignity. They expect to be given due consideration by the landlord. They expect to be listened to and treated fairly.
Unfortunately, some property owners look down on their tenants and show it. There are landlords that put unreasonable rules in place and expect their tenants to comply. There have been landlords who tell tenants when to put on their generators and when to put them off, as well as when to go out and when to come in. As long as tenants keep to their part of the bargain they do not expect any interference from the landlord. When tenants are treated well, they often stay until they need to move into their own property.
This article was written by Abiodun Doherty