How to Get the Right Tenants and Increase Turnover
Let's be honest, finding loyal tenants is not an easy task. Broken lease agreements and miscommunication can cost you time, money and cause stress. There are a few tips which can help you find the best tenants for your property and guidelines on how to keep them. Creating a relationship between you and your tenants based on trust and mutual understanding is the key to working out your turnover issues.
1. Use Facebook, Google and other social media
When screening potential tenants spend a few minutes browsing their Facebook pages and see for yourself what kind of impression they are displaying for everyone to see. You may be quite surprised at what you will find. Are those people showing a respectable demeanor online? After screening your potential tenants, ask yourself if those are the kind of people you can trust with your property. The best way to decide is by trusting your gut feeling. This can save you lots of worries and problems in the future.
Another tip when you are going through applications and references is to trust your own eyes, not only the tenants' words. Push aside their references and better go to the tenant's current dwelling to see for yourself what they are like. This is only a little test which can make you decide whether they are trustworthy. If this potential inspection makes the tenant nervous, or if he tries to stop you, reconsider their applications. Nobody says that their place has to be in immaculate condition. You don't even have to enter, but an honest and serious tenant would have nothing to hide and won't be afraid to let you in.
2. Create a competition
If you organize an open house when renting your apartment, this will be a chance to create a good competition among potential tenants. This way the chosen tenant feels lucky and proud, that they have been chosen among all the rest. A competition of this sort may seem unnecessary, but it is actually a great way to create a respectable and strong tenant-landlord relationship.
To create such a competition, have an open house for 1 hour on Sunday, for example. This will ensure a big exposure and some of the viewers will ask to fill out applications forms on the spot. When tenants see potential competition, they are even prepared to pay a damage deposit and this makes them want the place stronger.
3. Have compassion
Renting out your property is a business like any other and you should run it like one. Understand that no tenant is perfect, just like no landlord is perfect either. Sometimes bad things happen, there is damage or misunderstanding, but in order to succeed keep your good name and reputation. Tenants that are loyal and pay their rent on time are allowed to have one or two bad months from time to time. Instead of sending them warning letters, try calling them to find out what the problem is.
4. What is your tenants' impression of you?
If your tenants have the feeling that all they do is work to make you rich, they won't feel guilty when they are late with paying the rent. Avoid talking about how much money you make and belittling them. Showing off your brand new car will only become grounds for them to be late with their rent.
5. Don't become friends with your tenants
This may sound like common sense, but it seems to be harder than one expects. Becoming a friend with a tenant is a sign of future problem. It is harder to enforce the lease's terms and to get the payment on time if the tenant sees you as their friend, so avoid that at any cost.