5. Respond Quickly to Tenant Requests
When a tenant calls about a clogged toilet, an air conditioning that is not cooling, or any other malfunction, the landlord or property manager should respond quickly. Remember that unhappy tenants move.
Move-outs are extremely costly for property owners. I have some properties that rent for over $2,000 per month. Those vacancies will hurt your profit margins greatly! I like to have the maintenance person on site in less than 24 hours for all minor issues.
6. Don’t Wait Until the Last Minute Before the Tenant Moves Out
Start advertising before the tenant vacates so you have multiple new prospective renters ready and excited to look at the upcoming property. I want to do a walk-through 2-3 weeks prior to the tenants move out date so I can have any necessary handymen and/or contractors lined up to do the necessary repairs the minute that the tenant moves out of the property.
Every day the property is vacant, you are losing money.
7. Lease with the Option to Buy
This option will attract high-caliber rent-to-own tenants who are looking to test drive a property prior to committing to home ownership.
In the rent-to-own situation, the tenant gets time to get accustomed to the neighborhood, schools, and surrounding areas without being rushed to buy a property. They will be more likely to pay their rent in a timely manner to avoid losing their right to buy.
This strategy can also save the 6 percent in Realtor commissions. If the property is in an area that is appreciating rapidly, be careful not to set the option price too low because you want to get all the appreciation as the prices in the neighborhood climb upward.
About the Author
Over the past 20 years, Nick Baur, a St. Louis native, has had a passion for real estate. He has been a party to thousands of real estate transactions and generated over 25,000 leads in his real estate businesses. He is the owner of Real Estate Rehab and the founder/CEO of the South Side Investment Club and SSIC Inner Circle, the coaching and mentoring arm of the South Side Investment Club. He is active in St. Louis real estate investing through Real Estate Rehab but truly enjoys teaching others the ins-and-outs of how to use real estate to build a lifestyle and the long-term wealth that they deserve.
Nick Baur is not an employee of Equity Trust Company. Opinions or ideas expressed are not necessarily those of Equity Trust Company nor do they reflect their views or endorsement. These materials are for informational purposes only. Equity Trust Company, and their affiliates, representatives and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal.
