Businesses understand that it’s better value to keep an existing customer than get a new one. This attitude will serve landlords well. By making an effort to attract and maintain great tenants, you can save yourself a lot of headaches and lost rental income. Great tenants are so valuable because they pay on time, commit to longer leaves, don’t damage your home, are good neighbours, require minimal contact and even actively take care of your home. Below are some proven strategies for getting and keeping great tenants.
Be a Great Landlord
Great landlords want great tenants, and great tenants want great landlords. If you want to attract and keep great tenants, it stands to reason that you must be professional and provide an excellent home that is in good condition. If you want your tenant to respect your house, you must respect that to them, it is a home.
To help your tenant feel at home, be friendly with them, organise repairs to be done quickly, and never enter their home unannounced. Appointments to check the house are fine, but you must respect their privacy.
You don’t have to bend over backwards for them; in fact, you shouldn't, but always treat them fairly and empathise with their position if you have a disagreement.
Offer Long Leases
While it is usually a good idea to limit the first lease to 12 months, if a tenant proves themselves to be respectful of your property then you should consider offering them a longer lease - this can go a long way to keeping families as tenants. It provides tenants with housing security while providing you with a secure income.
Raise Rent to Less than the Maximum
The value of keeping a great tenant is worth more than extracting every last dollar from them. While it’s reasonable to adjust your rent when the market dictates an increase, you don’t want to prompt your tenant to start hunting for a price they consider a better deal. Pricing your rent at slightly below market value can ensure your tenant remains loyal, which is often more valuable monetarily in the long run.
Understand Why You Have Fees
Having a late payment fee can be a good idea as it encourages your tenant to pay on time. That’s the purpose of a late fee - to encourage prompt payment. It is not a second source of income, and shouldn’t be viewed that way. If your tenant usually pays on time but is slightly late once - forgo the fee. The fee would probably stretch their budget, and they will be grateful for the allowance.
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