How do you encourage a good tenant to remain loyal?

26-Oct-2015

Property investment is all about achieving consistent investment returns through a fully tenanted property and that the property is well maintained to protect your investment also.

The ideal for every residential property investor is to have a tenant that remains loyal (continuing the lease), pays the rent on time and maintains the investment property in good order. The other half of this equation is the investor providing a rental property that is affordable, well-positioned and is in good running order for the tenant.

This is the win/win situation. The investor can control their investment choice and quality but it's the tenant that is the 'unknown factor'.

How does a property investor ensure their tenant remains loyal?

In order to increase the tenant loyalty and to increase the returns for our investor clients here at Home Specialist Property Management we manage a number of elements that can signficantly contribute to keeping a tenant loyal to an investor.

At the start of the tenancy we set out the tenant’s responsibilities to the agreement. With that comes an expectation that the property will be well maintained. We make sure that the tenants understand these terms and their responsibilities. The signature on the tenancy agreement can be read as satisfaction with your rent, the property and lease terms. This clearly sets the boundaries in which the tenancy will operate. Here you have set the expectations straight from day 1 and this will minimise false expectations during tenancy.

During the tenancy the efficient management of repairs as they arise will go a long way in maintaining tenant loyalty.  Here I am not just talking about big repairs and maintenance such as roof/gutter repairs, storm damage etc. I'm referring to a leaking tap or a broken window shade.

The little things do make a difference and a tenant that is appreciative of a landlord that is responsive to essential requested repairs will pay their rent on time and is more accepting of rent reviews and staying in the property longer.  

The benefit of a tenant remaining loyal and continuing the lease in your investment property means less vacancy time (minimise no rent returns), less time and expense to market your property again and again plus there is more certainty that your investment property is being well maintained by a loyal good tenant.

Nurture the professional relationship you have with your tenant as a landlord and you will reap the benefits of a loyal tenant! A happy tenant is a good tenant!