Jul 10, 2020
One of the things that we learned very early on was to treat our tenants as clients/customers as they are the backbone of the business for landlords like us. Most tenants pay $1,000 monthly rents which help us pay down mortgage for our buildings.
Considering an average turn over of 2 years, they are paying us $24,000. Paying off the mortgage for your buildings by tenants is the main idea behind rental properties. And if the property is vacant or mostly vacant, then the remaining payment comes out of the landlords' pocket. Which is not a good indication for any investors or Real Estate Entrepreneurs like you.
First of all, how do you decide if a tenant is a good one or not?
Well, here are some of the criteria we look for:
We also have implemented quarterly inspections of all our properties. By doing so, we come to know if there's any water leaks, mold issues and any of the units are messy which can lead to infestation of bugs.
We've also provide tenants with contact information during any emergency or maintenance need such as smoke detector is going off, or the tap/sink is leaking, drain clogged up. The reason behind that is that some tenants do not want to bother us for some minor issues. They think that it's not that of a big deal.
Sometimes their judgement is not right. As in the case of when someone sees that water is leaking from the sink they don't always report to us as they see it minor issue. But over the time it can cause mold and if its not fixed in time, there may be a damage worth thousands of dollars versus if its fixed when the issue was minor.
Also, when you inspect the property by yourself, you see who are the messy tenants so we educate them to keep their units clean to avoid getting infested from roaches or mice. And if they have damaged the property, we would come to know before they vacate the property and thus saving us from fixing it by ourselves.
These are some of the steps we take to identify the good tenants which help us to reduce or eliminate the turnover expense.
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