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Rewarding Tenants Can Be Profitable
As we enter the holiday season, it is important to show gratitude and thanks. Successful companies know that it is important to pay attention to their clientele. To keep clients happy and encourage a continuing relationship, they provide gifts, discounts, and more. In short, they go the extra mile with rewards to promote continuing income.

Without a tenant, the property owner has no income. Your investment IS a business. When you treat it as one, you realize that it may be profitable to provide additional rewards for good tenancy to increase your return on investment (ROI).

A tenancy begins with a contract between property owner and tenant. The tenant agrees to pay their rent on time and take reasonable care of the property. The property owner agrees to reasonable rent expectations and maintaining the property in a safe and habitable condition. If both parties live up to their agreement there should be a successful tenancy.

If everyone is living up to the contractual agreement, why should property owners consider providing additional rewards to their residents? It may not be necessary but small gestures or incentives can promote continuing income for your investment business.

Rental markets are volatile, swinging up and down just like the stock market. It pays to remember that while the property owner may be king one day (low number of vacancies available) the market will swing and give more control to the tenant the next (higher numbers of vacancies available). Rewards or incentives can make a difference to tenants when considering renewing their lease or simply continuing their month-to-month agreement.

Tenants are more mobile then homeowners are. If they feel their current rental is not worth the hassle they will consider moving. Did the property owner authorize the repairs requested? Is the owner reluctant to do the little maintenance items but waits for them to become a big problem and major inconvenience? Tenants consciously or subconsciously make judgments and if motivated enough, will move. If they see that the property owner held up their end of the rental agreement and provided unexpected rewards, they may be less inclined to move.

There is also the human element to consider. People like respect and attention. When the property owner upholds the tenants' right to occupy the property without unexpected intrusions, listens to all requests, and provides additional incentives, the landlord/tenant relationship is stronger.

Fewer property turnovers = less expense and an increased return on investment (ROI).

There are so many small ways to reward tenants throughout the year. Sometimes something simple, such as a thank you note for their cooperation during difficult maintenance issues, can help. It could be the installation of a ceiling fan, a free cable connection, a gym membership, a gift certificate for a local grocery, or the promise of a turkey or ham during the holiday season.

Some rewards can be more expensive but worth the expense. For example, a new energy efficient dishwasher can save the tenant money on utilities and help to reduce their monthly costs. This can make it much easier to issue a reasonable rent increase. Remember, these expenses, small or large, are tax deductible if legitimately spent on the investment property (just keep accurate records).

Take time to consider how rewarding your tenants can improve your landlord/tenant relationship in your investment property. Then work it into your current and future investment budget. Rewarding tenants can increase your bottom line.
November 2017
Owner of Terra Residential
Houston's only 
Certified Residential 
Management Company.
Specializing in Investment 
Brokerage & Management 
since 1990.
Address 
14655 Northwest Freeway
Suite 124
Houston, Texas 77040


Phone 
(713) 895-9966

Email 
info@terraresidential.com

Website 
TerraResidential.com

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    Michael Mengden 
    MPM®, RMP®, GRI® 
    TRLP, TRLS, TRPM 
    President/Broker
     
    (713) 895-9966 x305
    mmengden@terraresidential.com

    Bridget Mengden 
    Accounting 

    (713) 895-9966 x304 
    bmengden@terraresidential.com

    James Dominy, TRLS TRPM 
    Property Manager
     
    (713) 895-9966 x308 
    jdominy@terraresidential.com

    Jennifer Steward, TRLS TRPM 
    Property Manager
     
    (713) 895-9966 x306
    jsteward@terraresidential.com 

    Rebecca Roeber, TRLS TRPM 
    Property Manager
     
    (713) 895-9966 x307
    rroeber@terraresidential.com

    Donna Hill 
    Assistant Property Manager 
    (713) 895-9966 x303
    dhill@terraresidential.com

    Pam Braden 
    Sales Manager 
    (713) 895-9966 x302
    pbraden@terraresidential.com

    Judy Wyble 
    Administrative Assistant
     
    (713) 895-9966 x301
    jwyble@terraresidential.com
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