Notes

Retaining Good Tenants
All residents at your properties should be treated as your business partners as they are accountable for income, expenses along with your bottom line cash flow. It is important to have a great retention program and reward good tenants.
Why do people move?
People move for a wide variety of reasons and often they simply love to move and also have silly whatsoever. They don't just like the neighborhood, wish to move their kids to a new school, get divorced and wish to relocate, or their family gets bigger and they search for any bigger place. Some people end up buying their very own home, some relocate with their relatives or elderly parents, some relocate due to their job change. Surprisingly the most common reasons why people move is that they are being ignored by their landlord. Not having good relationship together with your tenants can bring about them moving out from your property. Tenant turnover is always costly as unnecessary work and repairs need to be done in addition to the vacancy and advertising expenses should be taken into consideration. To build a robust long-term relationship with your tenants it is essential to use a retention program in place.
Classify your tenants
Make a summary of all properties and classify your tenants ranking from A, B, C, D: A being this can be the best headache free and D being the worst nightmare ever. Most likely your tenants class with coincide with all the property class. What I mean by that that the best properties situated in A type neighborhoods probably will have the best tenants. Good neighborhoods have more affluent, educated and responsible individuals who want a better life by themselves and their families. These are individuals who are always polite, respectful, pay by the due date and never necessitate unnecessary reasons. They will also take care of their very own home and minor work that should be done like minor paint, carpet cleaners or perhaps get their unique appliances. B type tenants are also a good paying resident by incorporating flows. Tenant type should always be classified by 2 factors: timeliness of rent payments and property maintenance. Lateness is not necessarily an undesirable factor providing you arrive at collect the rent together with late charges which happens to be another source of revenue. C type tenants are the ones who've had eviction notices for non-payment, issues with maintenance because of increased wear and tear. They are not responsible, their number isn't working, they forget to fund utilities, and so they go from job to job always wanting to catch up making use of their bills. They don't maintain property well and you probably have received trash citations, violations and also complaints from neighbors. D type tenant will be the one you desire OUT. These people are the type who are non-negotiable, normally have minimum education, get involved in illegal activities and in most cases are in D type neighborhoods (war zones). In D type neighborhoods the most effective 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 a business, it is likely you spend 80% of your time on 20% of your respective tenants. The goal would be to analyze which tenants result in the most trouble and have eliminate them. It just isn't definitely worth the time for it to handle headaches, extensive repairs, late payments and evictions. Get rid of them, please take a reduction in a symptom to make it work in the long term. On the other side make sure you remember about your A and B type tenants and take some time to reward them internet marketing great residents.
Implement Retention Programs
While you could be busy handling problems of 20% of one's tenants, make sure you remember in regards to the high quality ones. In the very end they are the types who help make your living better and headache free. Remember, when we pay punctually, they likewise have some expectations. When you've got 100k inside your bank account, you expect your banker to find out you through your name; same pertains to your residents. Memorize their names and themselves composition. Build rapport, be able to know who they may be and precisely what are their interests. Treat them the direction they do, make all necessary repairs promptly each time, followup with their requests, and return their messages punctually.
• Move In Welcome Package. First impression is exactly what sets the building blocks for the long-term relationship. When people move into your property make sure it is clean and no repairs are expected. Assist them getting their power bills transferred over and check in to make sure they switched it into their name. We normally give small welcome gifts to new residents as well. We also include a welcome package containing information they have to have, including our Rent to Own program! Welcome package is definitely an chance to upsell your customer in the future.
• Quarterly Check Ups. It is a good idea to perform quarterly property inspections and make sure the properties do not require any work or maintenance. Once people decide to move it is VERY tough to change their mind, so don't arrive at a point when it is usually to late and allocate enough time to your good residents. If you do not have time to inspect the property or go to your residents, send them an e-mail, text message or produce a quick mobile call to be sure of things. People always appreciate that.
• Avoid Frequent Rent Increases. If you might have good paying tenants, leave them at the property and don't enhance their rents frequently. Rent increases may ultimately turn into a problem which enable it to help make your residents move. It is especially common during times of recession when the home 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 in your rental or if you've government subsidized tenants where a small rent increase is allowed annually. One year we made a decision to increase our rents by $25 and we lost several tenants. It cost thousands in unnecessary repairs, advertising costs, and vacancies! It is also your TIME that must be taken into account which you place into getting the home rerented. In the very end you don't know what kind of tenant you may be with this means you will cost much more cash in the long run. To avoid that you just can implement small "inflational" rent increases and justify them by increase with your insurance rate, property tax increase or improvements/updates that were done at the 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 whenever they obtain it. We ALWAYS give gifts to tenants on Christmas and New Year. It is also a good idea to give them a Home Depot/Lowes gift card or free carpet cleaning service. It will improve your home and make your tenants happy. A lot of the times it just isn't the gift but attention you give to the people, they appreciate it plus a $25 gift will translate in great long lasting relationship with your residents.
• Be Consistent and Do What You Promised. Managing rental properties is really a business also it needs to be treated like one. It is common sense but more and more people don't do the things they promise. It makes landlord look unprofessional and irresponsible. It is your responsibility to get together with management unless you have a management company and it is often a full time job! Simply do whatever you promised and don't promise if you cannot 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 along with your properties by regular mail. It is important to deliver these to your "A" and "B" type tenants. Good people usually keep company with like-minded people as well as the itrrrs likely that quite high you can be getting another good resident. Your tenants would not wish to put your relationship in danger and so are unlikely to recommend someone they don't know personally. As in different business you wish to give incentives for your residents for referrals also it can be in the type of commission, referral fee, or rent discount.
• Renew Lease EARLY. Make property manager richmond to deliver renewal lease a minimum of sixty day before the current lease expiration. At this point residents don't believe about moving and will also be more likely to sign another lease. If you do it last minute itrrrs likely that they already are searching for another place and may have found something better or cheaper, or both. Put the dates in your calendar please remember for you the lease by mail/e-mail and confirm the receipt with tenant. You need to find out as quickly as possible in case you current resident is moving out to help you start advertising the area. It is also a fantastic idea to look at your re-locate policies if they chose to move.
Policies & Procedures.
Being nice doesn't imply you can avoid policies and procedures. Set expectations of your residents upfront and explain them everything they need to learn (it should be on paper in your lease agreement) about overdue policy, property maintenance, pet policy, sublet policy, tenant insurance, transfer procedures, security deposit policies, local laws and ordinances. People may not be conscious of things they do wrong also it will cause you to look bad eventually. Set all expectations upfront and be nice later! Find a tenant retention program that works for you and implement it regularly, test numerous things. Remember people are all different and what works for just one person might not work with another.
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