There’s been a lot of talk within the private rental sector recently about the security that longer-term tenancies can provide to renters. Just Landlords is discussing how long-term tenants can also benefit landlords…
The Government, alongside lobby groups within the industry, has looked at ways to encourage landlords to offer longer-term tenancies as standard to private renters. This, it believes, would provide greater security to those with no other option than to rent their homes from a private landlord.
But it’s not just tenants who could benefit from long-term tenancies; landlords, too, should focus on keeping reliable renters in their properties for longer, Just Landlords argues.
Although Just Landlords understands that most landlords don’t raise rent prices for long-term tenants, the 5 Star rated Landlord Insurance provider explains how this could actually be beneficial:
Security for your finances
Although it’s easier to increase your rents with every new tenancy, this may not be the best strategy for landlords seeking security for their finances, as you may not know how reliable new tenants are. And, the more tenants you have, the more likely you are to find one that doesn’t pay the rent on time.
If you have reliable renters in your property already, who pay the rent in full and on time, then it could be a better bet to keep them there for as long as possible, so that you have a long-term plan for your own rental income.
Having a good relationship with those living in your property is essential, especially if they’re long-term tenants. As a landlord, it’s good to know that you trust the people renting your investment and that you’re providing a valuable service to them.
The longer your tenants are in your property, the more likely you are to create a good rapport with them, which can make the whole experience more pleasant for both parties. It also makes dealing with any issues that arise a little bit easier.
Look after your property
When your tenants feel more secure in your property, then they’re more likely to treat it like their own home. With a long-term tenancy, renters can feel more relaxed in a property and settle down there.
When a tenant feels at home in your property, not only are they more inclined to stay there for longer (thus providing security for your finances), then they are more likely to look after your investment and keep it in a good condition.
Reduce periodic inspections
With a new tenancy, it’s recommended that landlords conduct a periodic inspection once a quarter, to ensure that their tenants are looking after the property and sticking to their obligations under the tenancy agreement. However, with long-term tenants, this can reduce to twice a year.
Not only does completing fewer inspections make life easier for you as a landlord, but it can also give your tenants peace of mind in enjoying your property, without feeling like they’re living in someone else’s space.
Sometimes, landlords can focus too heavily on continuously putting their rent prices up, thus changing tenants every year. However, looking at Just Landlords’ reasons above, keeping long-term tenants in your property may actually be more beneficial, even financially!