Notes

Retaining Good Tenants
All residents at the properties should be treated because your business partners because they are accountable for income, expenses along with your important thing cashflow. It is important to have a good retention program and reward good tenants.
Why do people move?
People move for several reasons and quite often they merely prefer to move and also have no reason at all. They don't like the neighborhood, wish to move their kids to an alternative school, get divorced and require to relocate, or their loved ones gets bigger and so they start looking to get a bigger place. Some people decide to buy their own home, some move around in using their relatives or elderly parents, some relocate due to their job change. Surprisingly the most typical reasons why people move is that they are increasingly being ignored by their landlord. Not having good relationship using your tenants can bring about them moving out from the property. Tenant turnover is always costly as unnecessary work and repairs need to be done together with vacancy and advertising expenses must be looked at. To build a robust long lasting relationship together with your tenants it is important to use a retention enter in place.
Classify your tenants
Make a directory of all properties and classify your tenants ranking from A, B, C, D: A being this is the best headache free and D being the worst nightmare ever. Most likely your tenants class with coincide while using property class. What I mean by that that the best properties positioned in A type neighborhoods probably will hold the best tenants. Good neighborhoods get more affluent, educated and responsible individuals who require a better life for their own reasons along with their families. These are people who are always polite, respectful, pay by the due date and don't call for unnecessary reasons. They will also look after their unique home and minor work that should be done like minor paint, carpet cleaning or even get their very own appliances. B type tenants are also a good paying resident with a few flows. Tenant type ought to always be listed in 2 factors: timeliness of rent payments and property maintenance. Lateness just isn't necessarily a poor factor if you be able to collect the rent as well as the extra fees which happens to be another way to obtain revenue. C type tenants are the ones who have had eviction notices for non-payment, problems with maintenance due to increased wear. They are not responsible, their contact number is rarely working, they forget to cover utilities, plus they range from job to job always trying to catch up with their bills. They don't maintain property well and also you might have received trash citations, violations and even complaints from neighbors. D type tenant will be the one you desire OUT. These people are the ones who are non-negotiable, will often have little if any education, get involved with illegal activities in most cases live in D type neighborhoods (war zones). In D type neighborhoods the best method is to rent the home to your Section 8 or government subsidized tenant as rent payments always become a problem.
80/20 RULE
Like in almost any business, you most likely spend 80% of your energy on 20% of your tenants. The goal is usually to analyze which tenants give you one of the most trouble and get rid of them. It is just not really worth the time for you to handle headaches, extensive repairs, late payments and evictions. Get gone them, please take a loss in the beginning making it are employed in the long term. On the other side remember about your A and B type tenants and take some time to reward them internet marketing great residents.
Implement Retention Programs
While you will be busy handling problems of 20% of one's tenants, do not forget in regards to the honest ones. In the very end they are the type who make your living better and headache free. Remember, when we pay on time, they also have some expectations. When you have 100k within your bank account, you expect your banker to know you because of your name; same refers to your residents. Memorize their names and their family composition. Build rapport, arrive at know who they are and precisely what are their interests. Treat them how they do, make all necessary repairs on time each time, follow up using their requests, and return their messages promptly.
• Move In Welcome Package. First impression is the thing that sets the inspiration for the long-term relationship. When people move into your premises make sure it is clean and no repairs are essential. Assist all of them with getting their bills transferred over and follow-up to be sure they switched it into their name. We normally give small welcome gifts to new residents as well. We also will include a welcome package that has all information they should have, including our Rent to Own program! Welcome package can be an opportunity to upsell your customer in the future.
& dig this Check Ups. It is a good idea to complete quarterly property inspections to make sure the properties do not require any work or maintenance. Once people plan to move it is VERY difficult to change their mind, so don't be able to a point when it would be to late and allocate enough time on your good residents. If you do not have time and energy to inspect the property or call at your residents, send them an e-mail, text or come up with a quick mobile call to evaluate things. People always appreciate that.
• Avoid Frequent Rent Increases. If you've good paying tenants, leave them at the home and never grow their rents frequently. Rent increases will ultimately turn into a problem and can make your residents move. It is especially common in times of recession when the exact property values drop and new landlords have the ability to offer lower rents as a result of lower mortgage payments. Rent increases are ok if you're offering initial discount on your rental or if you've government subsidized tenants when a small rent increase is allowed annually. One year we thought we would increase each of our rents by $25 and now we lost several tenants. It cost lots of money in unnecessary repairs, advertising costs, and vacancies! It is also your TIME that must definitely be taken into account which you put into getting the exact property rerented. In the very end you don't know what type of tenant you may be with also it can cost much more profit the long term. To avoid which you can implement small "inflational" rent increases and justify them by increase within your insurance rate, property tax increase or improvements/updates which were done at the exact property.
• Gifts, Postcards and Thank You Letters. Show your residents appreciation by sending them a Birthday and/or Christmas cards. You will be surprised how happy it makes people once they understand it. We ALWAYS give gifts to tenants on Christmas and New Year. It is also an excellent idea to give them a Home Depot/Lowes gift card or free rug cleaning. It will improve your house making your tenants happy. A lot of the times it is not the gift but attention you give to individuals, they regards and a $25 gift will translate in great long term relationship along with your residents.
• Be Consistent and Do What You Promised. Managing rental properties is often a business and yes it should be treated like one. It is common sense but so many people don't do whatever they promise. It makes landlord look unprofessional and irresponsible. It is your responsibility to be on top of management if you do not have a very management company and it is a full time job! Simply do what you promised and don't promise folks who wants deliver.
• Pay for Referrals. You can turn your existing customers into more referrals by sending them either e-mail blast newsletter with new properties or simply flyers with your properties by regular mail. It is important for you these to your "A" and "B" type tenants. Good people usually keep company with like-minded people and the chances are high you may be getting another good resident. Your tenants would not want to put your relationship at risk and are unlikely to recommend someone they don't know personally. As in any business you need to give incentives for a residents for referrals also it can take are commission, referral fee, or rent discount.
• Renew Lease EARLY. Make it a habit to send renewal lease no less than sixty day prior to the current lease expiration. At this point residents don't believe about moving and will be very likely to sign another lease. If you do it last minute itrrrs likely that they already are trying to find another place and might have found something better or cheaper, or both. Put the dates with your calendar and don't forget to send the lease by mail/e-mail and confirm the receipt with tenant. You need to find out as fast as possible if you current resident is moving out so that you can start advertising the area. It is also an excellent idea to check out your move out policies whenever they thought we would move.
Policies & Procedures.
Being nice does not mean you are able to avoid policies and procedures. Set expectations of the residents upfront and explain them everything they need to understand (it ought to be in some recoverable format with your lease agreement) about overtime policy, property maintenance, pet policy, sublet policy, tenant insurance, leave procedures, security deposit policies, local laws and ordinances. People might not be conscious of things they are doing wrong plus it will cause you to be look bad in the end. Set all expectations upfront and turn into nice later! Find a tenant retention program which fits your life-style and implement it regularly, test unique. Remember people are many different and what works for one person probably won't benefit another.
Website: http://www.masonre.com.au/