A happy tenant is more than just a tenant renting a property who doesn't have any complaints.
The smart investor knows that a happy tenant equals a long-term return on their investment and that whilst it may take a bit of extra effort to keep tenants happy, it's always worth it.
For an investment property to deliver solid returns over the long-term, numerous factors come into play. Vacancies have to be minimised, the rent needs to be paid on time, costs have to be minimised and the property has to be well looked after. A happy, loyal tenant will have a positive influence on all of these factors - and it doesn't take much to work out why that means better ROI in the long-term.
So let's look at a few reasons why a happy tenant is an important contributor to a successful property investment and what landlords can do to keep their tenants happy and engender their loyalty.
A happy tenant will pay rent on time
Cash-flow is critical to the property investor, particularly if mortgage repayments are dependent on rental income. A tenant who is happy with their accommodation situation is likely to pay in full and on time every time.
A happy tenant will look after the property
Buying an investment property is a significant financial commitment and it's imperative that this valuable asset is cared for appropriately in order to maximise capital growth over the long-term. A happy tenant is far more likely to look after the property with due care and consideration than someone who is dissatisfied, so it makes sense to keep the peace and look after both parties' interests. If repairs or upgrades are required during the tenancy, it is vital that the landlord or property manager respond promptly and deal with the situation efficiently and satisfactorily in order to keep the tenant happy.
Favourable rent increases are more likely with a happy tenant
Rent reviews aren't the easiest things to discuss, but they're essential and if a tenant is happy and feels that their needs are being met and that their voice is heard by the owner or the property manager, they are likely to be more amenable to rent increases.
Loyal tenants generally mean long-term tenancies
A long-term tenant can contribute significantly to the performance of a property as it means costly vacancies are eliminated, fees associated with re-letting are avoided and investors have the security of regular rental income.
Small extras can make a big difference
A well-priced property with good facilities is a good start when it comes to keeping a tenant happy but sometimes tenants need a little extra to make it work for them. This may be something as small as changing the showerheads or installing a ceiling fan, and the smart investor won't simply look at tenants' requests in terms of the immediate capital outlay but rather as an opportunity to increase returns over the long-term. Tenants will be happy with their 'added extras' and the investor will have added value onto their property.
Keeping tenants happy is a significant contributor to long-term investment returns and it takes time and effort to establish mutually beneficial relationships. Employing a professional property managementcompany can be a wise move when it comes to keeping track of the day-to-day requirements of managing a property, building those relationships and keeping tenants happy. Time Conti Sheffield has always held the belief that a happy tenant is crucial to an investment property's long-term success and with their 60 years' of experience in property management and real estate in Perth, they're more qualified than most to deliver on their promises. Find out more from their website, www.timeconti.com.au or call their 24 hour telephone 08 9362 5333.