When buying a rental or investment property here in Mexico you want to keep a good tenant as long as possible, a rental agreement between an unhappy tenant and an upset landlord will not have a long shelf-life. There are many reasons why you want to keep good tenants as long as possible, less hassle, steady income, cheaper on repairs and an overall better ROI, no different than if you had rental or investment properties in the US or Canada. A few hints to help you keep tenants…good ones:
- Don’t get greedy – every property has pros and cons, just because someone rents their 5000 square foot beach house for 4k a month does not mean your 1200 square foot third row house is worth the same, some people want beach, some don’t, some want single story, some don’t. Overpricing your rental will lead to missed payments and vanishing tenants,
- Before they Move in – clean up, fix what needs fixing, refresh paint, change spent lightbulbs, clean the yard, check the plumbing, gas and AC. That way you can expect your new tenant to be happy and maintain the property to your liking,
- Make sure everyone knows the rules – be clear about the rules ahead of time, put issues about deposits, repairs, parties, payments in a clear concise contract,
- Do emergency repairs quickly – good maintenance and using good maintenance people is to your own advantage, if you are proactive about repairs minor issues will not become major issues, if you skimp on repairs your property will deteriorate pretty quickly and so will the relationship with your tenant,
- Don’t wait for problems – be proactive, check in with your tenant on a regular basis to see if any issues are on the horizon, it is easy to maintain a friendly and professional relationship and not just wait for the monthly rent payments,
- Be Fair – Think like a tenant, the human factor is more important than you think,
- Lease renewal – be proactive with the renewal, tell your tenant well in advance that you are interested in renewing the rental agreement, in case the tenant has decided to move on, this gives you ample time to find a new tenant,
- Return deposits – returning deposits is part of doing business here and almost everywhere else, the expat community is small, and word gets around pretty quick if you keep someone’s deposit for no reason, complaints on social media can damage your reputation. If you have any
Replacing a good tenant is not easy, the cost of having an empty unit is expensive, do the numbers and you will see it is easier to keep a happy renter than replacing one.
See you on the beach….
Steve “The Beach Gringo in Chief” Patterson
thebeachgringo@gmail.com