While you may be able to attract the quality tenants, keeping those tenants for long time is another part of the story, and it is equally important as attracting them. Together, both these actions, if attracting and keeping quality tenants, can collectively be termed as achieving tenant stability.
Tenant stability, as the name suggests, is associated with having quality tenants living in your property for few years. There are a lot of benefits that you can get from tenant stability. For instance, you will not have to spend huge costs in advertising, repairing and re-renting the property again and again. Secondly, you will be able to get consistent cash flow. Thirdly, you will be able to add adequate strength to your portfolio as a landlord.
So, how can you achieve tenant stability? Let’s discuss.
While you may be asking about applicant’s credit and criminal record, add another question regarding how; often they move. If they move quite often, ask them the reasons. If they cannot tell you a good reason other than ‘we like to move’, it should be alarming for you.
It really makes sense to turn down the application of such tenants especially when their record suggests that they do not live at a place for long time.
The lease should also ensure tenant stability
You can develop a lease agreement to ensure better tenant stability. Unless you are running a vacation rental, tying your tenant for a year or two using the lease agreement is a preferable option. While a short-term lease agreement is certainly out of question, it shouldn’t also extend beyond two years because doing so can create flexibility issues.
Discuss the lease agreement before tenant’s singing
The time before lease signing is critical to ensure better tenant stability. When you call the tenant for signing lease agreement, make sure that you have selected a quiet location or the process. Discuss every aspect of lease agreement and also give the talk about tenant stability a fair time.
You should tell the tenant that lease is a legally binding document. For instance, if your tenant is due to pay $1,000 per month in a lease of one year, they’d still have to pay $12,000 if they decide move out without completing one year. Tell them that you will be authorized to initiate a legal procedure if they decide to move out while breaking the lease.
However, you will have to show flexibility if our tenant is forced to break the lease due to some solid reason. As a matter of fact, your leniency in this regard will act as a positive sign for prospective tenants.
Better relationship with your tenants
Make sure you are quick to resolve all of the property-related issues that your tenants may have. Being highly vigilant in resolving issues will make your tenants happy, and they will more likely choose to stay at your real estate for long time. If you like your tenant, you can offer renewal of lease upon the ending of current one.