As we gather with friends and family to reflect on what makes us thankful, I can’t help but think of my tenants.
That’s not what most people would expect an independent landlord to say, but without my tenants, my rental business wouldn’t be a business. My tenants are my “customers,” and I’m incredibly thankful for them. Here are seven reasons why I’m particularly thankful for my tenants:
1. They pay my mortgage
Well, not exactly, but they do provide me with the income I need to fully cover the mortgage (PITI) and repairs. Granted, I chose to purchase properties with a high rental potential.
It’s all part of a bigger plan to build wealth that will last generations.
2. They are a consistent source of passive income
After all my monthly expenses are paid for each property, anything left over goes into an emergency fund or my pocket.
Passive income is one of the greatest ways to build wealth, and my rental income allows me to manage my business part-time.
3. They are my eyes and ears
I want my tenants to feel safe in their home, and they want to feel safe, too. They do a good job of keeping me informed about problems or crimes in the neighborhood, which helps me take precautions to protect them and my investment.
4. They make a diversified portfolio possible
The only reason a rental property is an “investment” is because my tenants pay rent. Without them, my nest egg starts to rot.
5. I’ve made friends
Most of my tenants are good people who are a pleasure to work with. Some of them have become my friends.
I don’t believe in renting to friends or family, but there’s nothing wrong with making new friends.
6. They maintain and improve the property
Most of my tenants take pride in their home, and I’m honored that they care for my property.
After most move-ins, tenants will request to paint or make small cosmetic updates. If they’re willing to pay for materials and labor, and their work improves the property, I’m all for it!
Other tenants are aspiring handymen, and will make small repairs on their own dime, which saves me time and money.
7. They will work with contractors on my behalf
Most of my tenants will happily meet with repair contractors, and oversee the repair, if it means the fix will be done faster. Most of them like being there when a stranger is in the house, and they don’t mind if I’m not there.
That said, I always follow-up on the repairs, and I pay the contractors over the phone or online.
What are you thank for?
In your rental business, what is one thing that you are thankful for? What makes it all worth doing? I’d love to hear about it in the comments below.