When it comes to property management, retaining residents is one of the key elements in protecting your return on investment. Long-term tenancies are ideal for landlords, although they aren’t always easy to find - here’s how to attract yours.
What is a long-term tenant?
A long-term tenant is a resident who has agreed to extend their lease past its original terms. A short-term tenant will stay for the shortest amount of time that their lease allows, and their landlord probably won’t have much time to get to know them, whereas you have ample opportunity to form a lasting and healthy relationship with a long-term resident.
How are long-term tenants beneficial?
If you’ve found a tenant who takes care of your property, is always on time with their monthly payments and is reliable and respectful, then it makes sense to want to keep them around long-term. Long-term tenancies also ensure a consistent stream of income and save on costs such as preparing and marketing the property for a new renter or lengthy periods of vacancy where bills might start piling up.
Having a clear understanding of the correct market rate for your rental property is key when increasing your long-term tenancy. Check other rental listings in your area, are their prices competitive with yours? Does your property offer good enough reason for your prospective tenants to pay more for it or will they be tempted to move somewhere with lower prices? Make sure you’re charging for exactly what your property provides, the demand for your location and the facilities and amenities that are available, and your tenants will struggle to find a cheaper option which offers the same.
Welcome your new tenants with open arms and assure them that you will be a phone call away from any help or advice they may need during their tenancy. Taking time out to prepare an informational binder that includes everything they’ll need to know will show that you’re organised and you care. Lack of communication and cooperation between landlord and tenants is where dissatisfaction with the tenancy can arise, so make sure your tenants feel heard and concerns such as maintenance issues are attended to.
Most tenants won’t see a cold home as a long-term option, so be proactive and invest in insulation for your property. Proper insulation will lower the tenant’s utility expense, which will make your rental home more affordable and desirable. Spending on insulation will save you money on expensive turnovers in the long run, as having a property that’s cheaper to heat will decrease chance of frequent vacancy.
Create a sense of community
While financial incentives can keep hold of some tenants, others will make their decision based on how much their rental feels like home. By doing your part to create community and familiarity among tenants and property managers, you can enable feelings of friendship and comfort which everyone needs in their home’s surroundings. Consider hosting events or gatherings for residents to give your tenants the opportunity to make local connections and deter any feelings of isolation.
Get in touch with one of our branches for more information today!