There are a lot of reasons that tenants like to lease and not become home owners. They can live in a house and have the security of having a home where someone else takes care of the major financial expense and maintenance and all they must do is pay a monthly amount and utilities.
What if you could have someone live in your home for five or more years and help you pay for the home? This long-term stable relationship can result in great success for everyone. The most successful investor/landlords clearly define their mission and strategy early and make a commitment to follow it.
Below are three areas to define so that you can succeed in your real estate business.
Define the vision of the “right fit” to occupy your home. Even tenants with the right “credit/payment” history can end up being a wrong fit.
• What is the maximum number of people for the size of the home?
• Outline the total budget for living in the home (rent, utilities and maintenance expected) and communicate it in your advertising.
Clearly define the expectations: – Leases set the rules for a healthy relationship.
• What is expected of tenant regarding maintenance (major or minor)?
• When is rent expected and are they expected to mail it, deliver it personally or will you come pick it up?
• Who do they contact when something breaks (do you provide a list of service providers and when they can contact them and when they must contact you for approval?)
• What happens if the lawn is not mowed when expected (do you have it mowed and charge the tenant)?
• What happens when you get a notification that a utility is going to be shut off? (nip this in the bud early so that you don’t get left with a large unpaid bill when they leave.)
• Help them to see that the security deposit can be like a savings account. What do they have to do to get 100% back? These are not traditional homeowners so often they don’t understand how much everything costs. set the rules for a healthy relationship.
Excellent Customer Service
• Return tenant calls promptly. When landlords don’t return calls, tenants become anxious and that doesn’t lend itself to a good relationship.
• Keep your word!!
• Establish regular maintenance schedules and stick to them (heating and air/home inspections.)
• Agree that you respect their right to privacy and let them know that you will not stop by without calling first.
• Be consistent with your actions. You want them to trust you.
Professional Real Estate Investor/Landlords make it a mutually beneficial relationship. With the right beginning it can turn into a long-term relationship. Your professional reputation will make your homes the first choice when someone chooses to rent.