Investing in real estate is a smart way to diversify your portfolio and generate income. In 2021 alone, the estimated market size of property management in the U.S. surpassed $101 billion, according to data from Statista Research Department.
Clearly, there are real growth opportunities to be had with real estate, but to be successful with your investment, it takes more than just fronting some capital. There’s real work to be done.
Primarily, you must keep your units filled, and it’s helpful to do so with the very best tenants you can find.
Why Good Tenants Are Your Key to Investment Success
There are obvious reasons why you would want to fill your rental units with good tenants. For one, it is just plain easier to interact with good-natured people.
But more than that, having high-quality tenants in your properties can also be good for your bottom line. Here are two major ways how:
- Good tenants may be more likely to stay in your units for a longer period of time – this reduces your vacancy rate and cuts down on turnover expenses.
- Good tenants minimize the number of issues (read “expenses”) you have to deal with during a resident’s tenure in your property. If you’re constantly fielding complaints or handling preventable maintenance requests, this can become a major drain on your time and resources.
Yet finding good tenants takes time and effort. It’s rare for a good tenant to just walk through your door without you having to first do some marketing of your properties. Moreover, once you do have interested applicants, it’s imperative that you have a fair and equitable process in place for screening tenant applications.
As we at RL Property Management evaluate potential applicants, we do so by following a double-blind process to ensure compliance, fairness and consistency with each and every application we receive.
If you have questions about tenant screening or any other questions about property management in Central Ohio, we’re here to help. Contact us today to learn more.