This topic is very broad as there are a lot of different techniques that can be implemented. Feel free to leave feedback in the comment section letting us know what you have found to be helpful.
Tenants in Honolulu and on Oahu are looking for several key things; a well maintained home, reasonable price, and privacy. As a landlord, you need to be flexible within reason. No one wants to be told what they need to do or how to live the lives so be mindful of this. While I hate this phrase, tenants are tenants and there are certain things that are expected:
- They will not maintain the home like you would
- Clean is relative to the person
- Minor adjustments to the lease terms may not be that bad if the tenant is renewing the lease
- Upgrade and improve the home when needed; don’t always expect the tenant to request this because many don’t want to ask as they believe they will be shot down
Try to work with the tenant as much as possible, but be sure to know what lines not to cross. For example, if a tenant is making unreasonable requests such as new flooring or cabinetry when its not necessary or the home is not maintained properly. While vacancy is a property owners nemesis, a vacant home is better than a bad tenant.
Asking the tenant what their future plans are
Contacting a tenant to renew the lease or increase rent will result in them thinking about what their long terms plans are. Do I want to stay or move, can I find something bigger or cheaper, do I really need a place this big, etc. You actually may be better off allowing the tenant’s lease to revert to a month to month term over having them think about what they want. Conversely, there are tenants out there who are not comfortable with a month to month term but normally they would contact you about renewing the lease so its not you putting the idea in their head.
The tenants rented your property for one primary reason which is the price. Very few people are going to live somewhere when they know they are paying too much in rent. Additionally, rent increases can be tricky. Modest rent increases over time, if at all are better than a drastic increase. Even if the rent increase is warranted, be careful because keeping a tenant is better than trying to get an extra $1,200 for the year because you can easily spend a lot more then that if the property goes vacant. Try modest rent increase like $25 or $50 a month.
Try to look at things from the tenant’s perspective. Many people do not choose the rent because they prefer it. Instead, most would buy a home over renting one and as a result, they are renting because they cannot afford to purchase a home. Tenants are just as concerned with how much their rent as you are. Keep in mind what you are asking the tenant and be sure to base rent adjustments on the area to ensure that you are not increasing it too drastically for the location.
November 6, 2013