It may take some time, but finding a tenant that remains in your property for many years is the best thing you can have. The residual monthly cash flow that this creates helps to secure your wealth as a real estate investor. All investors face the day when a long-term tenant decides to leave. How you come out of that scenario can determine the continued success of your property. There are steps to take if tenants leave your investment property that will put you back on the right track to renting again. Waiting too long to make decisions can be disastrous to your rental income and real estate business. A few simple things can turn your negative into a positive again.
What Happens Before Tenants Move Out?
You can't be with your tenant 24 hours a day inside of your property. Regardless if you do routine inspections, it is still a good practice to inspect the property before tenants leave. You can supply your tenant with a checklist to follow before he or she actually leaves for good. Ideal tenants will have not damaged the property or cause you to make unnecessary repairs. It is common to need things like carpet cleaning and general cleaning before a new tenant moves in. If you are managing your own property, you could request that a tenant pay to have these chores completed. If you are using a property mangement company, these professionals can advise you where to start first.
A security deposit is traditionally refunded if an inspection is passed with flying colors. Tenants usually like to leave toward the beginning of a month as to not be charged the additional month of rent. Either you or your property management company will need to process the security deposit before your tenant vacates the property. It is generally accepted to return a security deposit the month before your tenant leaves. The process of cleaning the property and vacating it should take no longer than one month to complete.
Marketing Your Investment Property to Find New Tenants
The time frame that you have between one tenant departure and a new tenant arrival should be kept to a minimum. The more months that pass between finding a new tenant makes it harder to maintain the property expenses. Keep in mind that you still have to pay for electricity, water, insurance premiums and property management fees (if applicable) when finding a new tenant. One of the benefits of investing in property management is the waiting list of tenants that can be contacted when a long-term lease is up. These professionals know how important it is to have a property rented quickly and are worth the investment.
The ups and down of owning an investment property can seem like a lot of work and it is. The strength of your real estate business plan can often determine the success that you have with your investment property. Learning these steps to take if tenants leave your investment property will help put your sights on keeping your property earning positive cash flow. Whether you have one property or several, the second most important thing about owning an investment property is an available source of renters. Available cash flow is the first.