Tenant Relations and Your Bottom Line

If you own an investment property or you are thinking of purchasing one, it is likely that your property will be tenant occupied. Your approach to tenant relations will have a big impact on your bottom line. Owning an investment property, is akin to running a business. A high level of customer service is vital to running a profitable business.  Tenants want to feel that their landlord cares about their well being and safety.  They want to know that their landlord can be depended on to follow through on commitments. Landlords that are committed to a high level of customer service attract tenants that pay their rent on time, take pride in maintaining the property and are good citizens to live among. Good tenants decrease your overall maintenance costs and provide a predictable rent roll. Providing a high level of customer service will keep your property rented with minimal issues. Once you have qualified your tenant it is up to you to manage the relationship.

Whether it is a product or a service, customers want value for their hard earned money. One of the criterion used by prospective tenants to determine value is the physical condition of the rental unit. The physical condition of the rental unit is also an indicator as to how attentive the landlord will be in addressing any future repair issues. Prospective tenants are likely comparing your property with other rentals in the area. In the end, a prospective tenant will want to ensure that they are getting the best value for their money. 

There is a strong correlation between the maintenance of a property ,it's vacancy rate and turnover rate. Properties that are well maintained and that address tenant repairs in a timely manner are in high demand. These units tend to keep tenants for a longer period of time, thus decreasing marketing costs and loss of income during turnover. In a renter's market, where the supply of rental units is greater than the demand, tenants are even more discerning and will spend their money on the properties that are well maintained. When a property is well maintained it  will attract a tenant that will want to upkeep the property and take pride in where they live. When the perceived value is high rental units are usually rented at or above market value.