Being a landlord for a small property is not a simple task. Small property landlords take on all the assignments larger properties can meter out to different people. Essentially, a small property landlord is a one man marching band, that is, responsible for every task.
However, the goal of any landlord or property manager, regardless the size of the property or how many rental units are available is the same: Long-term tenants.
A long-term tenant provides a degree of financial predictability but provides a great deal more when one considers a bigger picture. Long-term tenants are the result of hard work, dedication, and understanding the three P’s of Rental Properties: People, Place, and Perception.
People – The people that reside in a property will make or break that property. One bad tenant can disrupt a harmonious tenant-landlord relationship and drive away potential or existing long-term renters. It is incumbent on the landlord to create this harmonious relationship through the vetting process. Conducting a complete and thorough tenant vetting process, one that includes an application, face-to-face meeting/tour, and a tenant check is integral.
Tenant background checks are the central component in the vetting process. Tenant checks have two distinct features:
1. Tenant checks draw information and data from public records, such as consumer credit reports, unlawful detainers, and related.
2. Reference checks verify a tenants past, specifically with previous landlords and property managers, as well as employment.
Once individuals, roommates, or families have taken residence it is critical for the landlord or property manager to maintain a given property.
Place – A critical eye of the property will help a landlord. Maintaining the appearance of the property with regular maintenance and quick repair as required can assist in gaining a long-term renter. Further, ensuring there are no hazards such as exposed wiring or trip/fall hazards can decrease risk and liability.
InsuranceNet.com states the obvious but comments well worth repeating.
From InsuranceNet.com: (Aug. 08, 14)
That includes changing the locks so the tenant isn’t liable for any keys that may be floating around, and making sure that the unit(s) has a fire extinguisher and working smoke alarms. (1)
Keeping a property well-maintained greatly assists in developing and enhancing a relationship with a tenant. Fulfilling a promise goes a long way.
The third P in the triad is more difficult to define.
Perception – How other potential renters view a property as a whole could make or break the investment. If a property has a poor perception due to frequent police visits, poor maintenance and landscaping, and an overall lack of care, landlords will be hard pressed to gain long-term residents. Standards on tenants may drop or decrease as a unit sits empty. The profitability on a poorly perceived property can decrease significantly
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “A well-perceived property becomes highly sought. With well vetted tenants in place combined with a highly maintained property, perception can be relatively easy; however there are additional pieces that lead to a positive perception.”
Properties should be well lit and secure. Either through a gated-community and/or patrolled property tenants should feel safe within their rental property. Frequent police patrols can assist in decreasing the potential of crime and, subsequently, enhance the perception of a property.
Almeida adds: “Once a property gains a positive perception within the rental community, combined with great existing tenants and a well-maintained property, long-term tenants become an easier proposition.”
TenantScreeningUSA.com is a third-party tenant screening company that can greatly assist landlords and/or property managers in vetting potential tenants. TenantScreeningUSA.com has the access to information landlords of properties large and small demand. Utilizing third-party tenant screening is a best practice for any rental property.
Notes:
(1) http://insurancenewsnet.com/oarticle/2014/08/08/turning-a-profit-a-541821.html#.VAyibMJdV1Y
