Smart Money Bro Landlord Tip: 2 Ways to KEEP Good Tenants
A lot of attention is given to screening and finding good tenants. However, very few landlords emphasize the massively important habit of actually retaining good tenants. Having a good tenant for 1 year is great, but having that same good tenant for 5 yrs is 5 times better! No landlord ever wants churn, or turnover. That is the absolute worse thing ever for a landlord. Good solid landlords realize the fact that every time you have an empty rental it means you have less money! We want to KEEP our good tenants!
Lets first define what is a "good tenant". My definition of a "good tenant" is:
A tenant that pays rent in full on time, and properly legally maintains the property with a spirit of conscientiousness. PERIOD! Don't over complicate this thing. As a landlord don't worry about whether or not your tenant is nice, kind, or anything else that simply does not matter. As a landlord, you want the tenant to be a law abiding citizen that pays their rent and takes good care of the property.
Here are 2 quick tips to to help you KEEP good tenants:
Tip 1: Provide Rent Discounts
Everyone loves a sale. Tenants are no exception. Give tenants discounts if they qualify and meet standards that you determine, and they will appreciate you appreciating them. The types of discounts you offer can vary. For example, if a tenant pays rent on time on or before the day rent is due for 6 consecutive months, give the tenant $50 off or $100 off rent on month 7. Or, provide tenants with a $100 voucher they can use at any time during the remainder of the lease. You could give a tenant half off the rent for the 13th month if they sign another 1 year lease. You can also provide discounts on rent in August, which is back to school month if they have children, or December, because of Christmas. Another good time is July. Tenants love the possibility of having a few extra dollars in their pocket to celebrate the 4th of July.
Find ways to reward your good tenants with discounts around the time of the year that matters most to them or give them a voucher to choose a month of their liking. A good tenant will be pleasantly astounded and the benefit for you as a landlord down the road could be worth 10 times more than the small discount you provide for the tenant. It doesn’t take much to set you apart from most landlords and this strategy certainly can do that for you. Use this one sparingly and only with the best tenants.
Tip 2: Offer Unique and Pro Active Maintenance and Repairs
This tip will benefit you down the road because of the bonus upkeep to your property. Pro active means preventive maintenance above and beyond what you already do as a good landlord. Some examples include, clean the gutters and downspouts regularly, provide landscaping and seeding for the lawn, provide and routinely change the AC/Furnace filter, or provide and routinely change the 9 volt batteries for smoke alarms. Provide and pay for services usually reserved for the tenant. You will not violate terms of your lease if you go above and beyond.
Some unique services may include providing a house keeping or cleaning service twice a year, have the windows washed inside and out twice a year, or clean the carpet once or twice a year. As long as you keep the relationship between your tenant and yourself on a business level, the ideas are endless. Find opportunities that are inexpensive but bring the WOW factor. The key here is doing the things that other landlords won’t do or fail to remember to do for “good tenants”. Good tenants are usually good people, and they tend to respond favorably to fun unique services that show you value them. Plus, good tenants want to live where the landlord cares tremendously about the property. You want your tenant having an experience renting from you that they won’t get from other landlords. Small things make the biggest difference.
A good tenant is one of the most valuable resources you have as a landlord. You put tremendous amounts of time into finding them, so invest lots of time and energy into retaining them. Every time you manage to keep a “good tenant” in your property you eliminate a vacancy, and even more significant then that, you eliminate the biggest landlord nightmare, THE BAD TENANT! Good tenants keep bad tenants away from you and your property!