Anyone interested in Calgary property management knows the objective of real estate ownership is to recognize cash flow when not heavily leveraged, and to enjoy capital appreciation.
In a normal economy, we see a bit of both. In recessionary times, we see a dip. Overall, in a long term strategy, we see both.
How to Keep Good Tenants
A prudent property owner recognizes that tenant retention is critical, yet cash flow and appreciation is just as important. In order for the property to remain fluid and for the property to appreciate one needs to be cognizant of the fact that the landlord must provide the tenant with good service, and keep up the property. This is the dilemma that professionals deal with all the time.
When To Increase Rent?
In this arena, we ask about rent increases. If the market is a landlord’s market, we can seek to gain a small increase based on the strength of the market. In a tenant market, we are often faced with struggling to retain the tenant, who might be looking to leave unless we have been good to them, and the property has been optimally maintained.
I have found that if a landlord is fair and just and prudent, a small increase regularly provides stability and longevity of tenancy. This stability and longevity is the lifeblood of good landlord practice. Short term “rent grabs”, in my opinion, provide only short term successes.
Rental Customer Service
I am a strong proponent of good tenant customer service at all times, regardless of the state of the economy, as well as consistent property upkeep and maintenance. The investment in real estate has to be a long term strategy, and rent increases have to be tempered with long term thinking and planning.
Ability, Stability, Longevity
If you three words guide your relationship with a tenant: ability, stability and longevity, there should be little else that would stand in your way in retaining good tenants for the long haul. At Amhurst, our retention rate has been greater than 90% over the past ten years and we believe it’s our focus on good service and good maintenance.