How to Attract and Keep Above-and-Beyond (Not Just Mediocre) Tenants

by | BiggerPockets.com

Vacancy can easily kill the cash flow on your rental deal. Every month of vacancy is 8% of annual rent you won’t be seeing for that rental unit! The best way to keep your rentals profitable is to keep them full with great tenants. So what is a great tenant and how do you attract them?

In my humble opinion, good tenants pay their rent on time. That’s a baseline. Great tenants go well beyond on-time payments. They treat the property with respect, seeing it as a home versus a rental, and they treat you as the owner and provider of that home with respect also.

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How to Attract and Keep Above-and-Beyond (Not Just Mediocre) Tenants

My great tenants do things like plant gardens at the property, perform their own landscaping (actually, that’s in the lease, but at least they do it well), respect their neighbors, and abide by the law (tenants who willingly break the law in your property are not great tenants, agreed?). I would even go so far as to say that great tenants, through their behavior and habits, add value to your property.

Related: 11 Ways to Boost Tenant Retention for Higher ROI

In today’s video, I talk about how to attract these great tenants and how to keep them in your properties year after year. Through the efforts I outline, I believe that you will be more profitable over the years with your rental.

Check out the video to learn more. I hope we can get a good convo going, so please leave a comment in the section below! I look forward to hearing from you!

Have a great and profitable week!

About Author

Matt Faircloth

In 2005, Matt founded The DeRosa Group along with his wife, Elizabeth. At the time, the two person company owned and managed two assets – a single family home and a duplex. Over the last nine years, they have grown the company to a 12 person team owning and managing over five million dollars in residential and commercial assets throughout the central NJ and Philadelphia area. One of DeRosa’s mantras is “to make money while making a difference.”

19 Comments

    • Matt Faircloth

      Hey Katie,
      Thanks for the feedback. I’m not sure if your concern is for the environment; if that’s the case I’m sure you could find some more sustainable gifts to give to your tenants. Ours have always been very grateful for the TV. I agree, it’s never good to make assumptions, which is why we took a poll of our tenants and found that a flatscreen TV was by far the most desired give away. Thanks for the comment!
      Matt

        • sean haardt

          Katie, the point is not the TV, but the gesture. Matt said he polled the tenants. That’s two gestures. Don’t be such a Negative Nellie. You could “dispose” of it by giving it to a local non-profit organization who needs it.

        • Katie Rogers

          I am not sure who Matt’s tenants are, but you can’t eat a TV. I think the gesture should be something truly useful, like a rebate on the rent. I find I am one of the few investors who seems to still remember what being tenant was like. Tenants tend to have incomes well below the median. Many are struggling. So I tend to try to look at things from the standpoint of a tenant. I wonder if a cash rebate was one of the options on the poll.

  1. Jerry W.

    Matt,
    Great video. Thanks for sharing. Great tenants are not only great for business, they are great on keeping your headaches to a minimum. Good tenants do not create the heartburn that bad or even mediocre tenants do. Since I self manage and work a full time job good tenants are even more important than maxing out the rental income. Thanks for sharing.

    • Matt Faircloth

      You are welcome Jerry!
      You bring up another good point – Great tenants are low maintenance for landlords that don’t have much time to maintain their rentals hands on. Lower quality tenants can require constant attention, either in chasing rent or handling nuisance maintenance issues.
      Matt

    • Matt Faircloth

      Hey Ryan,
      good question. We use App folio for our in house accounting. It includes a screening tool. If you don’t have a unit count to justify a software that robust, consider Buildium which charges by the unit. You could also use simple screening softwares such as NTN (national Tenant Network), Kroll Factual Data, or Screening Reports . com. Any of these should be able to run criminal, credit, and landlord history.

      Matt

  2. James Barnhart

    Ryan, I use mysmartmove.com. The are owned by Trans Union. All I need to get from the prospective tenant is their full name and an email address. They then contact the tenant and they ask all of the personal info questions needed. The tenant pays them for the screening and will email you with a recommendation as to whether you should or should not rent to them. Works great.

  3. Sean Haardt on

    Thanks Matt. Good stuff. I’m a new investor and closing on my first buy and hold later this month. Don’t know where I’d be without BP and tips from people like yourself. Thanks for the videos. They are short and to the point, although Katie missed the point, I think ;). Keep ’em coming!

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