As an owner of investment properties, I understand the importance of generating profitability. It is one of the most important aspects of owning real estate. Frankly, it is the reason we all get into the rental business. Our goals are to create an incremental revenue stream. Unfortunately, there a few ways you can impact your profitability and I am going to talk about one of those.
As you can see by the title of the blog post, I am talking about the “Rental Golden Rule”. This refers to how you leave a property for your tenant. As we continue to meet with owners, we advise them of our tireless effort to find the most qualified tenant for their property. Fortunately, we have had an impeccable record of putting tenants into homes that A) pay rent on time and B) nicely care for the property. This has to do with the stringent process we adhere to as we place tenants. The key to this working is, making sure that the property is in its best condition prior to moving in. The property condition is KEY to a great rental period.
So, what I am really referring to? Specifically, I am referring to; tenants will care for the property as well as it is delivered to them. This is not always how it works but, in general, it holds true. If we deliver a property with sparkling paint, fresh carpet, and a manicured yard, tenants are more likely to keep it in that condition. Tenants are aware that outside of wear and tear, their security deposit may be impacted if they choose to be careless. In contrast, if a property is delivered with damaged carpet, dirty walls and a weed-laden yard, you can fully expect the condition of the property to get worse. In addition, a property in this condition is harder to rent and is more susceptible to sitting vacant but that is a story for another day.
When we have these conversations with owners, we often hear about their concerns around maintenance costs of keeping a property in great condition. In our experience, maintenance costs are typically higher at properties that are delivered in fair to poor condition. How so? Well, when a tenant doesn’t care for a property because of the condition it was delivered in, they are typically harder on the overall property.
As a result, be sure that you do your best to deliver a superior property. When you do this, you will find better tenants, your property’s condition will remain better and you will generate profit. If you have any questions or if you are looking for a property management company in Fort Collins, Loveland, Wellington, Windsor, Timnath, or the surrounding Northern Colorado area, please contact us to learn more about our property management services.