Keeping Tenants Long-term
As a full-time Canadian real estate investor, we need to create many deals to facilitate both massive and passive income. We need to be doing deals that give us quick money, thus creating a massive income but also be building a portfolio to achieve passive income with a built in profit in the future.
If we find ourselves in the likely event of being a landlord, there are many ways to make this a much more pleasant experience. Most landlords do not like the process, do not really like their tenants, and generally have a hard time of it. This can be avoided.
Use incentives to keep your tenants
Let's talk reality. A tenant is a tenant for a reason. Now, this is not to put anyone down, but generally from my experience, tenants are in either a financial situation that has been caused as a result of a failure in their life (such as a marriage failure), or they have poor spending habits, or are in a low-paying job. They are not bad people: I say that there are no bad tenants, only bad landlords. The landlord creates his own environment.
Create a loyal tenant base
By utilizing incentives, you are creating a much more loyal tenant base, and thus creating a much better situation all around for them and you.
What kind of incentives do I mean? We must take note of the birth dates of the tenants and the tenant's children. A simple birthday card, a bottle of wine, a turkey at Christmas or a gift certificate for a dinner goes a long way in the eyes of a tenant. It may cost $50, or even $100 dollars: but it is a small amount to pay to get a very, very appreciative and happy tenant. Not to mention it is a write-off for your business.
Take care of repairs quickly
The main reason why tenants move out is landlords do not do repairs on time, or sometimes ever. As we all know, repairs can be a huge part of being a landlord and can really affect our bottom line greatly. I give my tenants a repair request sheet so they have to outline what is the particular repair, when it happened and how long has it been happening, etc.
They sign it and date it, then send it to me. I then tell them “if I have not taken care of this repair within ten days, I will rebate you your daily rent after the ten days, until the repairs are complete.”
Treat your tenants like clients
This incentive gives the tenant the assurance that the repair will be done and done on time. If it isn’t then they will be getting money back. This builds confidence as a win-win situation, and builds a bond between you and your tenant.
Lastly, another incentive I like to give: if there has been no repairs within a year, (meaning if the tenants has done their own little fixes), then I will give the tenant $100. This could be in the form of a gift card.
You may be thinking “what if the tenant doesn’t tell you about a repair?”
You must inspect the property before giving the gift card to them.
So create a better situation between you and your tenants by creating incentives, and you will have a long-term tenant.
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