Q. Is there anything I can do to hold onto my tenants for longer, while also implementing regular rental increases? I don’t want my tenants leaving every time I put up the rent.
A. Tenants are essentially your customer. When you buy an investment property, you’ve got to always keep in mind: what would a tenant be looking for to pay a good rental return and stay a long time? You want them there, you want them to feel good, you want them to enjoy your property and also pay you a solid return – so you need to keep them happy. At the end of the day you want a reliable consistent return and you want to be able to create rent increases.
Security is a big one. Tenants love security. So make sure you’re giving them the right locks for the windows and doors and that the property has a secure entrance. Tenants will get really aggravated if you don’t provide adequate security and they won’t stay long in your rental property.
The other one is light. Tenants love properties with a lot of natural sunlight. People don’t want to rent a dark property. So make sure you pick a property that isn’t dark because the returns aren’t going to be as good. When you’re actually picking out your next investment property, make sure you understand what direction it’s facing for sunlight and whether it’s got good windows and doors which essentially create a light ambience to the property. Lighter properties will rent quicker than dark properties.
Noise is a big one. Buying on a main road – well, sometimes you just have to do it – but if you can avoid it and buy somewhere that’s quiet and allows the tenant the ability to get a good night’s sleep, you will hold onto them for longer. We all crave a good night’s sleep don’t we? So you want to facilitate that. Tenants just want a quiet, enjoyable lifestyle and if you can provide that you’re going to get a consistent return over time and do very well out of that property.
Sam Saggers, CEO, Positive Real Estate