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Many property investors are heavily dependent on tenants for the continuous growth of their yield, and according to Managed’s Thom Richards and Nick Bouris, there’s absolutely no harm in going above and beyond to make them comfortable, in the hopes of having them retain their tenancy for a longer period of time.
In order to avoid overcompensating for bad tenants, property investors must understand the responsibilities of all parties involved and communicate these well with them even before a contract is signed. Tenants who treat the property with care, take rent increase with little to no complaints, and establish a good relationship with landlords through goodwill and loyalty tend to enjoy additional perks over time.
After all, the landlords tend to take care of good tenants better to encourage them to stay longer.
According to Thom: “You work on everything, you go through everything. You test all the fixtures and fittings, make sure everything’s working for them, make sure they’re happy in the property … [make sure] that they’re completely comfortable in there.”
“[If the] last six months have been a breeze … of course, they’re going to re-sign at the higher rental yield,” Nick added.
‘Let them make a home out of your property’
One of the best ways to avoid a high percentage of tenant turnover is to make them feel at home.
Some landlords often get too strict about things like hooks on the wall for photos and paintings, finding it a little too tiresome and tedious to put up; but these might just be the reason for your tenant to stay in your property. In fact, tenants wanting to put their personal touch on the property is often a good sign.
Nick explained: “Those are the tenants you want. They’re in there for the long haul … [If they are] not putting an artwork up, I think you should be worried about your tenants … He’s about to punch out the next few months.”
Another usual bone of contention between tenants and landlords is whether pets should be allowed on the property—so much so that several local councils have gone on to implement laws pertaining to this issue. While there is no one solution to this problem, landlords may use a tenancy applicant’s past references to arrive at the best decision.
Thom said: “The way that we, [as property managers], tend to approach these situations is that you have to hand back the property in the same condition that you took it over … It’s a fair request.”
“If a dog does some damage that is part of what can be claimed via the bond … [the tenant must be answerable to that],” he added.
At the end of the day, it’s all about making sure that your tenant feels at home without having to sacrifice the good condition of your property.
“This debate around pets or no pets, I find it quite tiresome … Put a dog in, we don’t care, [as long as] it makes you happy … [Just] pay your rent on time [and take care of the property],” Phil concluded.
Tune in to Thom Richards and Nick Bouris’ episode on The Smart Property Investment Show to know more about the best tools, tactics, and tips to manage your properties and make the most out of your investment.