Finding the right tenants can be hard enough at times. There are some very nice people out there who actually care for properties. They treat them as if they owned them or sometimes even better.
The work and expense that these people put into a property often goes unnoticed. Like anything good that goes unappreciated soon enough it will fade away. Either the desire to impress dwindles or they become frustrated and leave.
It doesn't take much more than a kind word to differentiate yourself from other Landlords. If the tenants know you care, not only for the house but for them and the level of enjoyment they get while they are there, they will continue to feel inclined to look after you and your property.
Notes of appreciation to the tenant after a routine inspection report are a beautiful gesture as are welcome gifts to incoming tenants.
Most new investors are very nervous about cashflow, and rightfully so, their first desire is to meet all the expenses that come with owning a rental property. Things like council rates, mortgage repayments, water supply charges and body corporate bills keep accruing whether a tenant is paying rent or not.
In order to cover all these items the first mistake new landlords make is to advertise rent at an unrealistically high amount. This leads to few applications, if any, and then desperation leads to choosing a tenant that may not be suitable just to get rent coming in again.
The two biggest causes of income shortfall have nothing to do with the amount of rent received each week. The difference between having a cue of prospective tenants and being hard to rent can be as little as a change of 10% in the rent amount.
The first major cause of poor cashflow is having no tenant at all for sustained periods of time. Weeks without a tenant can mount quickly and easily set you back 20% in year end cashflow.
The second big loss stems from wear and tear. Tenants are certainly liable for damage they cause but there is no recourse against wear and tear. The difference in cost over the long term between great tenants and average tenants can be double. Meaning you may need to repaint and replace carpets, amongst other things, twice as often with the wrong tenants. Apart from care and concern the next big contributor to wear and tear is frequent changeover of tenants. Moving large furniture items in and out of a house every six months takes its toll.
Our best recommendation is find the right tenant at a fair rent who stays for years and cares for your property then make it worth their while. Care for them in return.
One of the most common ways Landlords get offside with tenants, usually without even knowing it, is through minor maintenance. Many times the requests will be small and seemingly insignificant. Often these tiny things get swept aside in light of other more pressing issues in life.
Tenants don't forget.
We can act quickly and show the tenant we care or we can procrastinate leaving small things ignored. Either way the precedent is set.
Tenants are much more likely to show care for a property if they know the owners care too.