You likely find that the cost of operating your rental
homes continues to increase year after year. Be it labor, insurance, or taxes …
rarely do prices fall. And that’s not even considering a big expense, such a
complete air conditioning system. So where does that leave you when it comes
time to renew a tenant’s lease and raise the rent? It makes the decision even
harder if you have a good tenant you’d hate to lose.
We still live in a free market society; you can try to
charge whatever you want. But to stay in business your rents do have to stay in
line with the supply and demand in your area. What’s more, I’d rather have a
good tenant who pays $1,200 a month than a problem tenant who pays $1,500.
Most tenants
are honest, hard-working people who simply want a decent place to live. So run
your rentals like a business that has customers. And if you want to keep good,
long-term tenants who
will not balk at a reasonable rent increase, be proactive.
That
means inspect regularly, respond quickly, and be creative. Look at how to
improve things throughout
the year. Reward early payments, offer
extra services like direct deposit, or tenant insurance. Even a gift
certificate to a local pizza joint can go a long way.
Other
good gestures, for example new paint or carpet or even a security
system if they pay the monthly monitoring,
could also assure tenants that they’re getting their money’s worth.
Want more ideas on how to become a successful landlord? Then click here to order your copy of What You Must Know BEFORE Becoming a Greedy Landlord.
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