With a wider choice of rental properties now available than ever before retaining your current tenants for longer periods definitely makes logical and financial sense. As well as saving you time searching for a new tenant and running the necessary credit and reference checks on them, keeping hold of your current tenant will also minimize the potential of lengthy ‘void’ periods on your property.
But, the key to retaining ‘good’ tenants is to be a ‘good’ landlord. Here, the experts at Belvoir show you how...
1. Don’t get complacent
A long-term tenant is a valuable asset in a saturated rental market so make sure you keep on top of all those little jobs that will make it easier for the tenant to feel at home.
“Maintain the property in the best possible condition,” says Paul Cartwright, proprietor of Belvoir South Hants. “When the tenant reports maintenance problems, sort them immediately.”
Proprietor of Belvoir Camberley Craig Walker agrees. “If approached to fix any problems this should be done ASAP rather than being complacent and putting this off,” he says. “The landlord should look at the situation from the tenants’ point of view - a broken freezer may be a hassle to fix today but, for the tenant, all their food is ruined and they cannot buy more and store it, therefore it is a very big deal to them!”
2. Save your energy
“Improve your property’s energy efficiency,” advises proprietor of Belvoir Peterborough and Corby Terry Lucking. “If your property is cold or drafty a tenant won’t want to extend their tenancy. Also, poor insulation etc can mean high gas and electric bills for a tenant, which may make them search for a more cost effective living solution.”
3. Have the right attitude
Show that you’re fair-minded and understanding. “A landlord should be polite and approachable, fair but not a walk over and always treat the tenants with respect,” says Craig Walker of Belvoir Camberley. Proprietor of Belvoir Bolton Mike Stuttard agrees. “I would say that to keep a tenant long term, landlords should treat their tenant well,” he says. “I am not saying that they should jump to every request, but if there is a legitimate request for maintenance work etc, tenants will appreciate a quick turnaround and this will definitely ensure that they think twice about moving.”
Mike Campbell of Belvoir Falkirk adds, “Landlords should always communicate promptly, honestly, clearly and informatively with the tenant on any matter affecting the property, its management and the tenants safe and peaceful occupation of the property.”
4. Why are they looking to leave?
“At Belvoir Peterborough and Corby we always cross-examine the tenant on why they’re wanting to leave when they give notice,” says Terry Lucking. “It’s vital to find out their objections and then we can try and overcome them. Sometimes it’s an issue you can’t do anything about, such as lack of space, but other times it’s something simple that’s easily resolved and encourages them to stay.”
5. Home improvements
“Requests for improvements should always be considered,” says Gary Legge, proprietor of Belvoir Bourne. Wayne Mearns, proprietor of Belvoir Southend-on-Sea, adds, “be flexible with decoration. The tenant can always restore the colour or style back to the original if agreed.”
6. Incentivize them to stay
It’s no use having a long-term tenant if they leave half way through their tenancy. Ensure your tenant stays for the duration by “adding penalty clauses for early release from a tenancy,” suggests Gary Legge of Belvoir Bourne.
7. Treat your rental property as a business
“I guess from our experience, the landlords who do retain their tenants are the ones who view their properties/portfolio as a business or investment,” says June Rakeshaw, proprietor of Belvoir Cheadle. “Because of this they carry out regular maintenance; thus keeping the tenant happy, adding value to the property and stopping repairs from escalating into something worse and more expensive.”
8. Keep it modern
Make sure your rental property feels as though it’s home from home by decorating to a high standard and providing modern appliances.
“Ensure the property is modern, neutrally decorated and unfurnished but including white goods and, wherever possible, a dishwasher,” says Kate Jackson, proprietor of Belvoir Bournemouth.
9. Be happy to help
“When conducting periodic inspections always ask if everything is ok and if they have any problems,” says proprietor of Belvoir Southend-on-Sea Wayne Mearns. “That way you are coming across as being pro-active and the tenant will feel secure in this knowledge.”
10. Rent reductions
“If a tenant gives notice because they can’t afford to continue renting the property consider dropping the rent,” says Terry Lucking of Belvoir Peterborough and Corby. “Taking a reduction of £50-£100 in monthly rent is better than having a potential void period.”
Gary Legge from Belvoir Bourne agrees. “Consider a slight reduction for a new long-term fixed contract,” he says. And “if a current tenant has a problem paying the rent be understanding but firm,” advises Paul Cartwright of Belvoir South Hants.
11. Respect their space
“When landlords meet their tenants in their property be respectful, friendly and informal,” advises Gary Legge of Belvoir Bourne. “Avoid disparaging comments and causing them to be unsettled by voicing possible future plans that are adverse to the current tenancy.”
12. It’s good to talk!
“Make sure you communicate with your tenants throughout their tenancy,” advises Terry Lucking of Belvoir Peterborough and Corby. “Arrange to meet them regularly so you can find out their frustrations early on and can put problems right before they escalate to a stage that they hand in their notice. These ‘courtesy visits’ should be in addition – and on different occasions – to inspections.”
13. Review rent with care
“When the tenant is due a rent review don’t automatically put the rent up,” says June Rakeshaw of Belvoir Cheadle. “Consider and analyse how the market is doing generally in that area for that type of property – putting the rent up could result in the tenant looking elsewhere and thus creating a void for the landlord.”
Proprietor of Belvoir Bolton Mike Stuttard agrees. “Try not to increase the rent too much,” he says. “There is definitely an intrinsic value in having a good tenant who looks after a property. On this basis, landlords should consider offering either a discounted rent or not increasing too regularly because their property is being cared for. As soon as a tenant moves out, there is the possibility of void periods and lost rent, which a landlord can ill afford.”
14. Emergency helplines
Proprietor of Belvoir Southend-on-Sea Wayne Mearns says that a tenant will be grateful for any help you can provide that will give them peace of mind during their tenancy, including emergency phone numbers. “Always ensure that they have emergency contact numbers for local plumbers etc,” he says.
15. Specialist solution
For expert advice and hands-on practical help to retain your current tenants “let Belvoir, the lettings specialist, fully manage your property for you,” advises Kate Jackson of Belvoir Bournemouth.
Proprietor of Belvoir Gravesend Jo Ohlson adds, “In this difficult economic environment it is in the Landlords best interest to retain their tenants as long as possible. They can do this by being pro-active and finding a good agent (such as Belvoir) to market and manage their property and to provide specialist knowledge and expertise.”
Why are long-term lets good for landlords?
• They reduce the potential of ‘void’ periods between tenants
• Long-term lets lower the risk of getting an undesirable tenant – if you’ve got a good one, keep it!
• There will be less credit and reference checks to perform
• Retaining your current tenant could reduce your fees if you were using an agency on a ‘tenant-find only’ basis
• You will have already built up a working relationship with your current tenant and both of you will understand the expectations you have of each other
• The fewer times furniture is moved in and out of a property the less likely there is to be wear and tear and minor damage to door frames and paintwork
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