Thursday, December 8, 2011

Who's Side Are We On? ; Taking Care of the Revenue Side of the Equation

          At Sarasota Management & Leasing, we are occasionally asked by our landlords, "Whose side are you on?" The answer is, "Yours!"  Everything we do is focused on maximizing our owners' cash flow. However, part of that process entails keeping costs down , your property rented, and staying out of court.

          What many landlords don't realize is that a happy tenant is usually a low-cost tenant. If tenants are comfortable with their rent payment and not receiving pressure from their landlord or property management company, not only are they more willing to make their payment on time, but they often cause less damage. They also tend to stay in the property for longer periods of time.

          However, if a landlord causes friction and hard feelings with their tenant, it is often to their detriment. When the tenant is mad at the landlord, their outlook on their home is changed, and they no longer view it as a peaceful, welcoming, comfortable place. In response, they may not want to pay their rent on time, and may begin to look for another place to rent. If they move out, they are less inclined to leave the property in good condition.

          Once they have vacated, the landlord will face higher turning costs including new paint, carpet cleaning, and miscellaneous repairs. Things may even be missing. In addition to those costs, the property
 will be vacant for a time, adding up to a significant loss of revenue.

          This is not to say that you should let your tenant continue to send in late rent payments, or fail to keep your property tidy and in good repair. At Sarasota Management and Leasing, we have years of experience in finessing these situations. We have learned how to preserve relationships with our tenants by treating them with respect, while educating them on what is reasonable and expected. It is often the difference between a happy resident-and a confrontation. It is also the difference between maintaining your property as a profitable investment, and taking a loss.