Emerald Chamber of Commerce Inc

Myths and Tips to Keep Good Tenants Longer

 

Author: Belinda Smith -  Source: Oohm.com.au

 

Tenants can unfortunately get a bad rap. Yes, there are going to be some nightmare tenants out there – who give the good ones a bad reputation. Maybe I have been lucky enough to not encounter a bad tenant in my long history of being a landlord, but I really feel there are some pretty common myths out there concerning tenants that aren’t entirely (or at all) accurate.
Myth 1: Tenants are Trouble

I recently found myself defending my reason for owning investment properties to someone who had a preconceived idea that all tenants move in and destroy the property. And, for this reason alone, this person was fearful of investing in residential property.

One of the best long term tenants I have had was a single mum. Her credentials weren’t great, but trusting the judgement of my Real Estate Agent – I approved her application. She remained in my property for just under 10 years and kept an immaculate house – treating it as if it were her own, and her rent was always paid on time.

For me, this myth is very far from the truth – the vast majority of tenants are great.

Myth 2. Tenants Expect Luxury

This is just flat out wrong. Tenants expect liveability.

It is natural for all of us to want to provide a safe living environment to our loved ones. Tenants want a house to be a pleasant place for them and their family to live, and they are usually realistic about what accommodation to expect within their budget. Comfortable living temperatures help.

Myth 3. They Will Move Out Anyway

Again, wrong!

Other than personal circumstances, most tenants vacate a property because they are unhappy with the managing Real Estate Agent or the owner’s inaction to their requests – they simply become dissatisfied with the property.

Moving is not fun, and it requires energy, time and money. Tenants dislike moving and they would be doing it for a particular reason. Tenants are usually open to negotiation if you want to ask them to stay, with improved terms and conditions.

This brings me to my next point: Good tenants are like gold!
Good tenants who stay in rental properties for long periods of time take away some of the stress of holding your investment. They treat your property well, keep it clean and pay their rent on time.
Once good tenants are established and they sign a long lease, that investment becomes a ‘set and forget’, which is the ideal arrangement for any investor as the property requires very little time and attention. Understanding your tenants and considering their needs is key to keeping the good ones long term.

Tips for Keeping Good Tenants

1. Good Management

Paying a competent Property Manager is essential. Good managers will look for tenants with good rental histories, and who are of stable character.

2. Tolerance

People have different personalities – some will be fussy, others more laid back and some are really messy. Experience helps with gaining tolerance of people, getting an understanding that they live differently and to varying standards of hygiene. So long as they are not damaging fixtures and fittings, a quick clean up after they vacate your property will be all that is required.

3. Listening

Ask your Property Manager to inform you of anything that is of concern to your tenants, particularly when they first move in and identify items they would like fixed for their comfort. Attending to small repairs quickly lets your tenants know that you care about their needs and the standard of your property. Understandably, a tenant will become frustrated if they are paying full rent and their concerns are ignored. Establishing a good relationship right from the get go helps keep good tenants longer.

4. Comfort

Provide good heaters for winter and ceiling fans for summer. Install insulation if needed to help regulate the temperature and to lower your tenants’ power bills.

Hint: Installing an air-conditioner provides an opportunity to ask for a rent increase and/or encourage a tenant to sign a longer lease. It also makes the property more appealing for future tenants.

5. Gifts and Thankyous

A ‘thank you’ and regular compliments will be appreciated by your Property Manager, as they have a busy and important role in looking after your investment.

Reward good tenants with small gifts e.g. movie tickets or shopping vouchers, especially at Christmas time, with a card saying ‘thank you for looking after my property’. This comes at a very little cost but can have a big impact on the way your tenants feel, often resulting in better care of your property and longer lease terms.

6. Respect

Rather than viewing tenants’ demands as problems, respect that their rent payment pays for YOUR investment, so addressing a few minor concerns is no problem. Consciously making this simple mindset shift can change attitudes and improve relationships.

Respect your tenants and look after them. After all, happy tenants will stay longer and good long term tenants are ‘set and forget’.