We’ve all heard the horror stories of tenants ruining properties by putting holes in walls, staining the carpets, refusing to leave a property at the end of their lease etc. This concern is what I would assume is the leading cause of people not being interested in owning rental properties. Sometimes there’s nothing you can do to prevent this kind of behavior, but you can put the odds in your favor by treating your tenants like customers. Having rentals is a business, and with any good business comes great customer service.
Every single time we’ve met with a prospective tenant, we do our best to ensure that we want them to call us if something stops working or if they notice anything that needs attention. We do this for a couple reasons. 1. We want them to live in a place they love (the more they love it, the longer they will stay), and in order to do that they need to feel like they are being taken care of. And 2. These houses are investments for us! We want them to stay in good condition and don’t want something small to not get taken care of and turn into something huge.
We’ve looked at rental properties to purchase where the seller says “the tenants are amazing, they never call about anything, very low maintenance” and honestly, that’s a red flag for us. We’ve gone into several properties like this where it becomes evident that the tenants didn’t call because they just didn’t care about the house or they were getting low rent and were worried if they did call their rent would go up. Again, we want our tenants to call us, and you should want that too.
We’ve been extremely fortunate and have never had bad tenants. That being said, as with any business, you need to plan for unexpected things to take place. We always had money set aside in case something did happen to one of our homes and honestly, we planned for something bad to happen. We did this because we rental properties is our plan for retirement, we are in this for the long haul… so we planned for things to go bad so that if and/or when they did, we would be prepared and wouldn’t let it get us down. Luckily that never happened, and we like to think that a lot of that has to do with the fact that we treat our tenants with respect and are prompt to respond to their needs. Of course, there’s a lot that goes into finding the right tenants as well, but we’ll save that post for another day.