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Turning over a property from one tenant to another is almost never easy.
It can be a time and money consuming task, and there is always the possibility that the property will remain vacant
for the period between tenants. The rent payments stop but the expenses continue, chewing into your bottom line.
You will always lose tenants. People's situations change, they buy houses of their own, their job situations change.
You can't prevent that. What is foolish is to lose a good tenant because of a factor that you could have had control
over.
Why is it so important to keep a good tenant?
- With the tenant in place, you know what you have. You never know what you are going to get when you have to find
a new one.
- To find a new tenant, you will likely incur advertising costs.
- You will have to spend time qualifying and showing the property to new
tenants.
- There are often damages to the property caused by one tenant moving
out and another moving in: furniture bangs up against walls, things get dropped, etc.
- There are generally costs incurred in turning a property over to a new
tenant, for example painting, carpeting and the like.
Hints on keeping good tenants:
Communication. The
tenant must know that if there is a major problem, you will be responsive and handle it. If it is a minor problem,
they need to handle it themselves or wait until you can do it. If the rent needs to be raised, call them and let
them know rather than just sending an impersonal letter (although you will need to follow up the phone call with
information about the increase in writing).
Firmness but understanding.
Tenants must know that rents are absolutely due on the first of the month. If there is a bona-fide problem (a medical
emergency, for example) and if you are notified promptly, you must be understanding of the situation. Of course,
this is a limited "understanding." Tenants who have "problems" every single month need more
of the firmness than the understanding.
"Friendly touches."
Gift baskets during the holidays or the use of your handyman for a few hours are the kinds of touches that help
with tenant relationships. The cost is minimal but the potential benefits (retaining a good tenant) are large.
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