In the past I’ve participated in numerous leases. It’s fascinating to look at how different the results are based on the speed at which the property is leased and the quality of the tenants you get in relation to the condition that the house is in. Additionally, it’s evident that the state of the house has direct bearing on the monthly fee which can be charged.

I am a firm believer that there is a “laws of attraction” theory when it comes to advertising your home.

That is the process of updating your Investment Property to the latest standards after you become into a tenant will decide:

1. How quickly can you let your lease to an incoming tenant

2. The tenant’s quality (in terms of punctuality in addition to taking care of the house when they live there)

3. The amount you’ll be allowed to charge per month

Here’s a deeper explanation of how these mechanical systems are made:

1. Improved Market Rate Properties attract greater credit and higher income Low Risk Tenants who are likely to want their property taken care of (higher quality standards) and generally contribute to helping to maintain the building. (They will ensure or even improve the general state of the building at their own expense or through the property’s owners.)

2. Quality Market Rate Properties are a great choice for qualified income, quality-marginal credit typically low-risk tenants who do not demand “perfection” but will want the property well maintained. They may even contribute a bit to assist, but only enough to maintain it in good shape.

3. The under Improved below Market Properties attract Marginal Credit, Just enough income to be considered dangerous tenants. They aren’t likely to be involved to take care of their property, but they’ll have fairly optimistic expectations of the landlord as they pay an enormous portion of their earnings to rent the property.

4. Unimproved below Market Properties attract Qualifying Income, Marginal Credit and a few risky tenants who don’t worry about the property since it seems that the landlord doesn’t. This hinders the property’s performance as an investment. The result is that an owner more money than they would if the tenant were prepared to make regular maintenance and upgrades.

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In this regard I suggest you take the time to look at the way you’re managing and marketing your properties. Maintaining the investment properties in excellent condition will help you remain within your improved market rate and quality brackets and attract the kind of tenants you want. A+B does not always equal C but generally speaking, the trend is.

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