According to Mike Jordan, a real estate investor from Livonia, Michigan, writing for BiggerPockets, “As a landlord, you know that vacancies will hit you hard financially.” Not only are you going to shell out money to maintain the property, but replacing that tenant is time-consuming and expensive. That is why having a long-term tenant is the goal, as it provides consistent and positive cash flow. When you treat tenants well, they are more likely to renew their lease contracts for an extended period. One study has shown that tenants are 3x more likely to stay in a unit being run by a property management company, like Delaware Realty Management.
Delaware Realty Management
Delaware Realty Management oversees the day to day operations, including rent collection with online payment system, notices, overseeing maintenance coordination and lease enforcement
When you buy rental properties, you can attract all sorts of tenants. Some can be terrors who set you back by the amount of money required for reconstruction of the rental unit. You will have to evict that kind of tenant.
On the other hand, you can have dozens of incredible tenants who pay rent on time, take great care of the property, and help you spectacularly build wealth and financial freedom.
It is one thing to attract tenants to your rental property; it’s another to find more of the great tenants and fewer of the bad ones?
How to Keep long Term Tenants
- Set High Standards. Carefully define the standards that state who you are willing to rent to — and who you are not.
- The tenant must earn three times the monthly rent from documentable income sources
- The tenant may not have any prior evictions
- The tenant may not have any felonies.
- The tenant must have a 600+ credit score.
- The tenant must have excellent references from past landlords.
- Train and manage effectively. To find incredible renters who will take care of your property, pay on time, and help you build high passive income, you need to train your new tenant to be world-class. Most tenants want to be great, but many don’t know how. It’s your job as the landlord to train your tenants. Train them the same way you would train up a child: Establish rules, make them known, and instill consequences for breaking those rules.
- Be responsive. If you never address your tenant’s concerns, the next phone call you receive might be from them wanting to end their contract and move out. Be responsible and proactive in addressing their needs. There are numerous ways to establish communication channels with your tenants. At Delaware Realty Management, we are available online 24/7 and have 24 hour emergency service.
- Don’t be a stranger! Don’t just collect and cash the rent checks. You can do little extra things like thanking them for paying their rent on time; wish them well on any special event coming up; send a birthday card; something that makes a little connection. The good thing about being nice to your tenant, it costs very little, or nothing at all, but the results can lead to a good long-term tenant.
- Be cautious when raising the rent. At the end of the lease, you may be thinking of increasing the rent. Inform your tenant at least one rental cycle ahead of time about your plans to increase the rent. Explain your reasons in detail with proper justification about the rental increase as more of a ‘need’, not a ‘want’.
- Have a Lease. Create an inclusive and transparent lease. Don’t just hand it to your tenant and expect them to read it—go over it with them carefully. Make sure that they understand the allowances and restrictions of the property, as well as requirements for li ing there. Delaware Realty Management does those things you don’t want to like lease enforcement.
- Upgrades, Repairs, and Maintenance. A building that needs repair is not going to keep tenants in the property long term. Make repairs as soon as they arise and perform regular maintenance on the property. Periodically make upgrades to the property to help tenants to feel more satisfied with their apartment. An upgraded appliance may be the deciding factor when it comes time for lease renewal.
- Keep Safety in Mind. Long-term tenants need to feel safe when they’re at home. This is something to keep in mind when you’re getting the property ready to rent out. Make sure the property has high-quality doors and windows. Invest in deadbolts for every exterior door, as well as window locks. Make sure the perimeter is as safe as is reasonable.
2700 Kirkwood Highway
Newark, DE 19711
(302) 995-2550 fax
Tenant Screening Made Easy: