The difference between a successful rental/investment property and one that is failing, could be more of a complex fix than just raising the rents. If your goal is to minimize vacancy, minimize repair costs and increase your cash flow, then these 7 rules for success should help see where the problems are:
Do thorough rental history and background checks.
This gives you the best chances of finding tenants who have a good track record of paying on time, taking care of the property and not causing trouble to neighboring properties/units.
Tenants who are given an inch will take a mile. Set a due date for rent and enforce late payment and non-compliance fees.
Maintain your property.
Your rental income comes from the tenants. Take care of them. If you are going to get top dollar for rents and require the tenants do what they are supposed to, then it would be in your best interest as the landlord to maintain and repair the property when needed. Tenants are more likely to have a sense of pride of where they live, pay on time and maintain the property themselves if they feel they are being taken care of.
If needed, evict.
Do not be afraid to evict if the tenants are causing issues, not paying or are continuously paying late etc. Do your best to not be one of the many owners who contact us because they are “too nice” and don’t want to evict even though they haven’t gotten rent for months on end. Rule #2 certainly helps prevent this as well.
Do what you can to keep good tenants.
If you have found the unicorn of tenants…keep them. Tenants that fall under that category would be ones who pay on time, go above and beyond to maintain and take care of the property as if it were their own and don’t cause issues.
Find quality maintenance.
Quality in this case means, responsive, flexible, knowledgeable with landlord tenant laws and maintenance issues, and priced reasonably.
Don’t be afraid to hire a PM
As you can see, it is a lot of work in the day to day life of a successful landlord. If you’d like more information on how Centurion Real Estate Management operates and how we can bring success to your investment property(ies) then please feel free to contact us.