Your tenant is your customer. I discuss how to attract and retain great tenants. You must think about how your tenant thinks.
The quality of the asset you buy affects the quality of the tenant that you will attract.
Six qualities tenants want are: 1) safety 2) move-in-ready condition 3) short commute distance 4) upgrades 5) neighborhood amenities 6) rent amount.
It’s not about what you would want in a rental unit, it’s about what your tenant wants.
Next, I tell you how to profit from inflation. Debt has a bad name. It shouldn’t. I tell you why you want to consider borrowing massively to profit from inflation.
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Listen to this week’s show and learn:
01:56 The definition of great tenants.
03:11 Avoid “A” and “D” class areas.
04:16 Six ways to attract great tenants.
13:23 How to retain the great tenants you’ve attracted.
20:55 How you can profit from inflation.
21:57 Inflation defined.
24:34 Why make extra mortgage principal payments?
27:28 Robert Kiyosaki.
31:05 The power of smart debt. How you get a “phantom” $40,000 gain per year on $1M debt.
How To Profit From Inflation – My Forbes article
Hey, welcome to GRE. This is Get Rich Education, Episode 171. I’m your host and my name is Keith Weinhold and today we’re talking about how you attract and retain great tenants for your income properties – some of which is just sort of common sense.
Then after that we’re going to discuss a topic that’s definitely not common sense which is where real estate investing intersects with the economy that you live in everyday.
This is really fundamental stuff. Your tenant is your customer. You’ve got to be able to supply a product that they demand and then keep them there.
As any real estate investor knows, your #1 cash flow killer is vacancy and turnover. So let’s dig into the heart of how to reduce that for you here.
So the success or failure of your real estate investments depends on your ability to consistently attract and then retain great tenants.
In the end, it doesn’t matter how great of a deal you got on the property or how strong your projected cash flow and return on investment are. Without great tenants that pay rent on time and take care of your property, the cash flow and returns all just evaporate into thin air.
Great tenants by definition – have a job, clean, pay rent on time, and that they’re law-abiding. And yes, I do mean that they have a job.
Here at GRE we talk about “Don’t Follow Money, Make Money Follow You”, well your tenant doesn’t think that way. By and large, they move to where the job is. They make a central part of their life following money around rather than following their heart or following their passion or chasing their dream.
They follow a job. As I’ve often said, you want to think about how your tenant is thinking. Your tenant is just not as aspirational as you – the GRE listener is – and that’s OK – I’m glad that they’re there for us and that there’s a steady supply of soul sellers – yes, people selling their soul.
So the question that naturally follows is: How do you find great tenants for your investment property?
The answer is so simple, yet so impactful.
The quality of the asset you buy determines the quality of the tenant you are likely to get.
You can’t change a property’s location.
Now, understand that you don’t want actually want an amazing A-class location. Those high-end properties aren’t profitable for long-term rentals, anyway.
OK, you’re not looking for a single-family rental home with great, sweeping panoramic views of a pristine, sparkling lake that’s stocked with trout or a home with a 3-car heated garage with a painted floor.
That’s A-class stuff: the best properties.
I’d also advise staying away from the bottom: D-class properties – the worst. The ol’ collecting the rent at knifepoint stuff. That’s not where you want to be either.
If you want to find excellent tenants for your investment-grade property, you should first purchase an investment property with the qualities that attract excellent tenants.
So, really a great question to ponder – if you want to find good tenants – is: then what do good tenants look for in an rental property?
1. Safety Safety is our most basic human need and a powerful motivator for excellent tenants. One of the main reasons why your prospective tenant decided…