You can pick a new investment property that seems absolutely perfect in your mind. But is it really? Are you keeping your tenants top-of-mind when you purchase and when you decide to renovate? It is easy to lose site of THE single most important factor when real estate investing in long-term buy and hold properties. Tenant satisfaction leads to longer occupancy.
For real estate investors, tenant retention is one of the key elements to investment success. The longer you can keep good tenants around and fill any vacancies, the better your passive income will be. At Premier Property Management Group, the property management firm owned by the Clothier family and providing management service to Memphis Invest, the average length of occupancy per property across the $350 Million portfolio under management is just over four years.
While historically renting has been seen as a less-desirable alternative to home ownership, that perception has been gradually shifting, both in the U.S. and abroad. A 2012 study by Property Intelligence in the UK found that 60% of renters said that they were not reluctant renters. And the 40% that are reluctant are mostly frustrated would-be buyers than anything.
Even across pond, many of the same sentiments translate over here in the United States.
So when you’re thinking about your next purchase or considering renovations, keep in mind what tenants really want out of their rental homes.