Why it pays to look after your tenants

Property is a more complex investment than stocks or shares, but can be worth it as long as your place is looked after.

Unlike shares, there is a human element involved with owning a property portfolio. In order to minimise holding costs, you need someone to lease your investment property from you. To create a win/win situation, it’s important to make sure everyone is happy.

As property managers, we have seen a wide range of tenant and landlord experiences. The more people treat each other with respect, the more positive and long term the relationships become.

Why does it pay to look after your tenants?

Tenants do so much more than pay your rent. They hold the bulk of the responsibility for taking care of your home and ensuring it is in good condition. You are relying on them to treat the place well and let you know if there is a major issue.

Treat your tenants well and you’re like to find that:

• They will likely stay longer, which keeps the mortgage paid. You may be able to increase the rent when new tenants come in but there are costs involved with potentially updating the property, advertising it and finding the right people to move in. If your place is vacant for a few weeks, you risk losing thousands of dollars or the increased value.
• A good tenant will return the favour you do them by treating the home as their own and keeping it in good condition.
• You can feel comfortable in the knowledge that you are providing someone with a good-quality, well-maintained place of residence, hopefully with less issues.
• You’ll get a heads up when there is a small issue which, if left unresolved, could become a large one.
• You’ll have a potential buyer when the time comes to sell (more on that in a moment).

What makes a good landlord?

It may sound counter-intuitive but a good landlord actually keeps themselves out of the equation.

Many people take on investment properties and decide to self-manage without realising how much work is involved and how many questions/requests they will receive from their tenants on a weekly basis.

When you hire a property manager, you don’t have to worry about adhering to the many dozens of rules about renting out a home. Every box will be ticked and your tenants will get a better experience.

A good property manager takes care of the following:

• Contract signing and renewals
• Regular updates and communication
• Quick responses to requests
• Safety inspections such as smoke detectors
• Organising repairs and maintenance
• Routine inspections
• Avoiding disputes which may lead to an expensive tribunal appearance
• Collecting rental payments (usually electronically)

Be a good landlord by handing management over to a professional who has far-reaching experience and knowledge. You will save you and your tenants from a lot of stress.

As a final note; you do have the right to increase the rent at certain times, even for long term tenants. A small increase can be justified, especially if prices are rising all around the area. It will probably be worth your tenants’ while to stay, even with a slightly higher weekly cost, especially if they are happy with the service they are receiving. Speak to your property manager for recommendations about when to raise the rent, and by how much.

HPA specialises in property management and aims to create those win/win situations for tenants and landlords. Contact us to find out more.