Being a landlord is no easy task. Not for the faint of heart, landlording can quickly become a full-time job for those who embark on this journey. If you are a landlord, you may wonder how you can measure your own success. Being a successful landlord is about more than just having zero vacancies. Check out these indicators, which may point to some weaknesses in your landlording and their corresponding tips for improving your success.
High Tenant Turnover
How often do your tenants turnover? While there are certain aspects of tenant turnover that are completely out of your control, a successful landlord will have a lower turnover rate than one who is doing a poor job. When you have fewer people coming and going, you lower your costs as a landlord and the amount of time you are investing in the property. Finding a long-term tenant who will pay rent on time is worth its weight in gold, especially as you increase your portfolio.
TurboTip: If you struggle with high tenant turnover, ask yourself a few questions about what the reason might be. How quickly do you respond to maintenance requests? How would you rate your relationship with your tenants? Are you finding the best tenants for your property or just trying to fill the vacancy as quickly as possible? Get to the root of the issue and see if you can improve your tenant screening process and build a better relationship with your tenants.
Trouble Filling Vacancies
When you do turn over a property, how long does it take you to fill your vacancy? If your properties sit on the market, you are losing money. The solution, however, isn’t to throw just any tenant into the property. If you are doing your job right as a landlord, you will garner enough interest in your property that you will have a solid pool of qualified applicants to choose from.
TurboTip: If you find that your properties simply sit on the market and you have little to no interest in the rental unit, ask yourself what you could improve. How are you listing your rental property? Do not settle for a sign in the yard or one online listing. Syndicate your property out across dozens of rental sites. How polished is your property description? A poorly written description with very few relevant details will struggle to bring in qualified applicants. Be sure you are also including high-quality photos of the property. The better you market your property the greater the chance of filling vacancies quickly, with a qualified tenant.
Spending Money And Time On Evictions
How often do you evict tenants? If you are constantly evicting tenants, you will watch your profits be eaten up by costs and lost rent money. Evictions take a long time to process and they should be avoided at all costs. If you find yourself wasting time and money on evictions, it is time to change your strategy.
TurboTip: If you face evictions frequently, you need to improve your tenant screening process. While the type of property you are renting and the neighborhood it is in will determine what standards you can set, you need to create a criteria that helps you weed out irresponsible tenants. Running an eviction report as part of the tenant screening process goes a long way in avoiding evictions.
Wasting Time & Money On Outdated Systems
One of the number one ways landlords cut into their profits is through the loss of time. If you are using a system that eats up all your energy, you will not be able to sustain this system as you expand. Make your process efficient and organized. If you are still using paper applications and a slow tenant screening process, switch to an online rental application that integrates with the tenant screening process.
TurboTip: Upgrade your landlording system by using a free landlord software. An online system will be more efficient and organized, saving you time and money.
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