Retaining existing tenants reduces the financial overheads caused by searching for new tenants and preparing a property for show. Conversely, replacing reliable and responsible tenants with an unknown quantity also contains an element of risk that it’s best to avoid.
The market for Brisbane rentals is solid for the right property, which is fantastic news for landlords. But your tenants may also be tempted by a wide range of choice. To avoid losing valuable tenants, you may need to take steps to encourage them to stay. We’ve compiled some useful tips to help you keep good tenants on board.
Know why they’re leaving
Effectively managing your property portfolio involves keeping your tenants in the loop and keeping communications open so they know where they stand. Taking steps to understand your tenants’ motivations can be key to keeping them on board, as Luc Lovenitti, Principal of Position One Property, explains:
“Tenants move for a variety of reasons, however if you are on top of your lease renewals and you have good communication lines with your tenants you will know why they are not renewing. Based on that answer you can then understand the course of action to take.”
There will always be tenants you can’t retain. Some because they’re moving to another town or are ready to buy. But there will be others who are actively looking for new local houses to rent. Brisbane landlords who understand the real story are more likely to find ways to keep valuable tenants on board.
Don’t leave it too late
Like anyone, tenants will start to get worried if they think they’ve nowhere to go. They will start to look elsewhere if they’re not sure they can stay. A recent survey in the U.S.* suggested that just 5% of tenants are likely to renew if you wait until the last minute, with 43% initiating the renewal process when the first lease is signed!
Beginning the renewal process early gives you the chance to put your tenants’ minds at rest. It’s a great reassurance to them that they still have a home and you’d like them to stay. We would suggest initiating communications as early as 3 months before the renewal date. This gives both parties the chance to prepare and gather their thoughts.
Offer an incentive
Increasingly in Brisbane, rentals are being renewed with the aid of incentives. These incentives make your property seem more valuable than the competition in tenants’ eyes. As their current landlord, you do have the advantage that moving is costly and cumbersome, so offering an incentive shouldn’t have to break the bank.
In the U.S., tenants have suggested that a financial incentive holds the most power over their decision. Reportedly, over 50% prefer this option to property improvements or gifts.
Surprisingly, a cash offering is not as attractive as a reduction in rent. So offering a discount for a limited time or waiving the rent for the first month of your new agreement can be a powerful incentive for your tenants to stay. One solution which costs you nothing is to allow your tenants to earn back their security deposit over a period of time. If you feel confident that your tenants value your property then this will strengthen your relationship as a gesture of trust.
Want to know more?
With extensive experience managing property rentals in Brisbane, Position One Property will be happy to help you manage your property portfolio. A well managed property will often result in happier tenants and keep your best tenants for a longer period of time.
As your property managers, we are the first point of contact for your tenants. We give them the care and attention they deserve, and they feel they deserve. Our expertise helps us advise you on the current rental market prices. Want some realistic retention incentives that won’t break the bank? Ask us!
Please get in touch and we’ll provide all the information you need. Call the Position One Property office on 3843 4511 !