A reliable tenant is essential to the success of your investment. Here are three crucial behaviours to ensure your tenants stick around.
Blogger: Bob Korver, owner, Mortgage Choice Eight Mile Plains
There is a lot more to property investment than just capital growth and rental yields.
As a property investor, you also face the task of finding good tenants for your property – tenants who will (hopefully) live in your property for a long time and treat it with care.
And while finding and retaining good tenants may seem like a small task, it can be more difficult than you think.
To retain good tenants, there are a couple of trick and tips that all landlords should follow.
1. Leave your tenants alone
It's understandable that you want to check up on your property periodically, but don't be the landlord who drops by unannounced every week. The first problem with frequent visits is the fact that your tenants have a right to their privacy. Tenants who are constantly being visited by their landlord may feel uncomfortable about the situation, and you don't want to scare away good tenants by making them feel that they are being constantly monitored.
If you do feel the need to check up on your property outside of emergency situations, tell your tenants exactly how often you plan to visit. At the end of the day, it is best to make these visits infrequent. Checking up on your rental properties every 12 months is a good compromise between efficiency and leniency.
2. Overlook normal wear and tear
You obviously don't want your property to be abused by tenants, but living in a home naturally means that tenants will unintentionally scuff up floors, scratch paint or let a pristine bathroom counter turn from white to off-white. Don't make tenants feel bad about normal wear and tear. Dealing with this minimal damage is part of being a property owner. You shouldn't press your tenants for compensation for damage unless it's out of the ordinary or severe.
3. Small rent adjustments
Raising the price of your tenant’s rent is necessary from time to time as the cost of living also increases. Rather than lumping a substantial increase in rent on your tenants every few years, introduce smaller increases of two to three per cent each year in predictable increments. This will ensure trust is maintained between you and your tenants.
By following these tips and demonstrating trust and tolerance, you will encourage your tenants to continue living in your residence, which will help you to manage a successful investment property.
Bob Korver is the owner of the Mortgage Choice Eight Mile Plains franchise in Queensland. He has more than 20 years’ experience in financial services, having held various senior positions at one of Australia’s major banks before joining Mortgage Choice in 2011.
With a Certificate IV in Financial Services and a Diploma of Finance and Mortgage Broking Management, Bob is well equipped to help his customers with a wide range of enquiries, including business lending, commercial property finance, equipment finance, car loans, personal loans and home loans.
Traditionally known for providing customers with expert home loan advice, today Mortgage Choice in Eight Mile Plains is well equipped to help customers with more than their home loan needs. The franchise can also help customers with their broader financial needs, including but not limited to, commercial loans, personal loans, business lending, equipment finance and even car loans.