Characteristics of High-Quality Tenants
The quality of your tenants affects your real estate investment’s growth and income. Thus, you should know what makes a high-quality tenant and do your best to attract and retain them. Below are some ways to recognize high-quality tenants.
They Take Care of Their Rented Properties
High-quality tenants care for their rented properties just as they would care for homes they own. These tenants are careful to avoid damage to their residences. For example, they don’t engage in DIY plumbing repairs that would cause water damage. These high-quality tenants also keep their homes clean and tidy to prevent related problems, such as pest infestation.
High-quality tenants also understand that some property maintenance is the responsibility of property owners. Thus, the tenants will go out of their way to avoid property damage but report damages as soon as they occur. That way, the property owner can take remedial measures to minimize the damage and financial losses.
They Relate Well With Their Neighbors
The relationship among your tenants is crucial for several reasons. For one, tenants who respect each other will not keep quiet if something goes wrong in one of the units. For example, a tenant who enjoys a respectful relationship with their neighbor will inform the neighbor if they suspect a burst water pipe in the neighbor’s house.
Secondly, a tenant who enjoys cordial relationships with their neighbors is more likely to stay than a tenant who feels disrespected. Thus, you will likely face low tenant turnover if your tenants respect each other and form a tight-knit community.
They Pay Rent on Time
The rent you collect for your tenants forms the bulk of your income from your rental property investment. Thus, a high-quality tenant will not delay or deny you the income. Tenants who pay their rents on time are great because:
- They don’t interfere with your cash flow
- They make financial planning easy for you
- You don’t have to evict them or use further resources to recover their rent
Such tenants set up automatic payments to avoid late payments due to forgetfulness. High-quality tenants also have the money, for example, as evidenced by regular income that they can use to pay the rent.
They Respect Lease Agreements
The lease agreement is a legal document that governs your relationship with your tenants. A tenant who understands and respects the lease agreement is a gem. For example, such a tenant:
- Will not play loud music at times when the lease agreement calls for quietness
- Will not sneak unauthorized visitors into the property
- Will not run illegal businesses on the rented property
High-value tenants do not just sign lease agreements — they read the arguments and ask questions. They understand the value of the lease agreement and ensure they only sign if they can observe the terms of the contract.
They Stay for a Long Time
A high tenant turnover is bad for your investment since it costs you money. Every time a tenant leaves, you may have to advertise the vacancy, spruce up the vacant unit, and screen potential tenants. All these things cost you valuable time and money.
You can save tenant acquisition resources if you have long-term tenants. Such a tenant will either sign a long lease or renew their lease multiple times. A long-term tenant can even attract other high-quality tenants — their extended stay may market your property as desirable.
Hopefully, you will get the right tenants, and your investment will thrive. New Leaf Properties LLC can help you attract and retain high-quality tenants. We have over 20 years of experience in residential property management. Contact us for consultations to determine how we can manage your properties and take your investment to the next level.