BENEFITS OF KEEPING YOUR TENANTS HAPPY
By Bernie Tynes
Developing and maintaining a good relationship with your tenant is paramount to the success of your property investment strategy. It’s one of the reasons why you would choose a property manager who has that impartial relationship towards both landlord and tenant.
The key is to encourage a positive rapport with your tenants before and throughout the lease period and respond quickly to their concerns (SPEED, SERVICE & SATISFACTION). A lot of this comes down to a variety of communication strategies. One of these strategies that Infinity Property Agents has employed is regular surveys throughout the tenancy. We encourage tenants to complete a survey in the days after their tenancy commences. We have an annual online survey and we employ staff to call tenants at least twice a year to ask if there are any maintenance issues that need to be addressed.
- Inspections – Infinity Property Agents conduct comprehensive inspections every five months. Regular inspections are essential to ensure that the tenant is looking after the property and offers the opportunity for tenants to address any maintenance issues. It also shows the tenant that we have an active interest in the condition of their home.
- Time to sell & presentation – Having a tenanted property makes financial sense to buyers. Investors prefer to purchase a property that has reliable tenants. A home that presents well becomes more attractive to buyers and offers a better return on your investment.
- Retaining tenants – There is a material cost of replacing tenants. Letting fees, lease preparation fees, advertising costs and potential loss of rent. There is a fine balance between keeping good tenants and maintaining rental income at current market rates. Respect your tenants with aim of retaining them for the longer term.
- Maintenance – Prompt attention to maintenance issues shows tenants that you care about them, their home and your investment. Addressing their concerns quickly also reduces landlord’s exposure to potential legal action if tenants are injured or rental compensation is claimed.
- Rental Arrears – Although Infinity Property Agents has a zero tolerance policy for rental arrears, there is a cost of not receiving funds on time, money that can be used to pay your mortgage and outgoings. Happy tenants are more likely to have automatic direct debits in place and take an active interest in maintaining a healthy rental ledger.
- Malicious Damage – Tenants that are happy and have a good track record are less likely to cause damage to your property. Whilst Infinity Property Agents recommend Landlord Insurance, the chances of malicious damage may be reduced significantly by maintaining a good relationship with your tenant.
- Disputes – From time to time, disputes happen with tenants. The most common causes of dispute are maintenance and non-compliance with the terms of their lease. Having a proficiency in the Residential Tenancy Act 2010 (https://www.legislation.nsw.gov.au/inforce/cfa8f374-676d-6eea-811e-95d70730f313/2010-42.pdf) assists tenants to better understand their legal responsibilities and the terms of their lease agreement. It also ensures that strata by-laws are being complied with (for example pet ownership and Airbnb issues). Infinity Property Agents maintain an active training program with our staff to ensure they and our tenants are compliant with the legal requirements under the Act and reduce instances of costly NCAT (New South Wales Civil and Administrative Tribunal) hearings.
- Premium rental returns – The rental market is a very competitive environment. Pictures may lure prospective tenants, but ultimately the price will be driven by the demand. Creating that demand is linked to the condition of your property and the quality of the service provided.
The value of attracting and retaining tenants who consistently pay their rent on time, pay market or premium rental values, cause minimal damage, comply with lease and strata terms and commit to multiple lease periods should not be underestimated. Infinity Property Agents train our property managers with strong customer service and tenant management skills that allow us to promptly respond and resolve any issue that may arise with your tenants.
Find out more how we can assist you to maintain happy tenants, contact us at https://www.infinityproperty.com.au/manage/property-management or by calling our office on 9699 9179.
Author: Bernie Tynes, February 2018