Jackson County North Carolina Rental Properties Earn More with Happy Tenants
By Allen Lomax
I recently read a comment to someone’s blog post that went something like this: “A landlord is someone who wants to maximize profit and so the less they provide the tenant, the better their profit. To a landlord rental is just business and nothing more but for the tenants it is their home.”
I know landlords who work by this philosophy but I don’t like them much and I sure do not like their properties. Some of them are earning returns on their investments. There must be enough desperate people out there who don’t care where they live to keep these slum lords in business. I suppose, If you like working with desperate people, slum lording may be an okay business.
Renting Properties is A Business
Our philosophy though, is that Jackson County North Carolinal Rental Properties: Earn More with Happy Tenants. I do agree that landlording is a business and to that end, property owners are renting to earn a return on their investments. I do NOT agree that the best way to do this is by giving the tenant as little as possible. That is, if you want the more respectable and dependable clientele.
Deliver the Goods to Maximize Profits
Being that renting is a business, it follows that to maximize profits the businessperson (landlord) must deliver the product and service that the customer wants. Maximizing profits requires that the property manager and the property owner work together as a team to build customer satisfaction for the property and for the management business.
Loyal Customers (tenants) Make the Business
Property owners who want loyal (customers) tenants are willing to go the extra mile to insure customer satisfaction. When in business customers (tenants) make or break the business. Good property managers and property owners who are also good business people understand this concept and invest in the properties to build a property that satisfies the customer.
Repeat business is just as important to property managers and property owners as it is to any other businessperson. I just received a call yesterday from a former tenant who is moving back into the area. He was hoping that I had a rental available. When a property manager gets a call like this from a tenant who moved out over four years ago, that property manager knows he/she is doing something right.
It is always a pleasure to hear from former satisfied tenants but it is even better and more profitable if the repeat tenant is a tenant who is renewing an expiring lease. Renewals are a property manager’s and property owner’s best repeat business. Re-leasing and lease-up following a vacancy cuts into earnings and the less often a vacancy occurs the better the bottom line.
Referrals for Maximum Profit
Another area where happy tenants pay of big is through referrals. Unhappy tenants are not going to encourage their friends to rent the place they are vacating. We rent to a lot of college students. College students don’t tend to stay very long but they do have well developed social networks. Because of happy tenants, we usually have our properties leased in February for August vacancies. We have not advertised in several years for some of our most popular rentals.
Even people living in “C” quality housing have their standards. It makes no sense, of course, for a landlord to invest in immaculate marble counter tops and flashy custom tile flooring in a low rent unit. Nevertheless, it does pay a landlord to maintain low rent properties with reasonably priced amenities and to keep the property clean with everything in working order.
Maintaining and improving properties while making a profit margin is not always easy to do. Easy or not, it is something property owners must do if they want to earn a good return on investment. Properties that are not maintained will soon become properties that are vacant. Vacant properties yield NO return on investment.