Quality tenants are the backbone of any successful rental property business. They pay rent on time and take better care of the property, resulting in fewer problems. But with landlords under pressure to increase rents during the ongoing cost-of-living crisis, how can landlords ensure they maintain their longstanding, quality tenants?
To successfully navigate this challenge in these difficult economic times, landlords should think long-term about types of changes that could be made to attract and retain quality tenants.
Clear communication with tenants is vital to ensure continued positive relations, as tenants want to be informed of any changes, updates or events that affect their living situation. Communicate with tenants through their preferred channels (e.g. email, phone, text, etc.) and provide them with relevant information such as rent payment policies, maintenance schedules and emergency contacts. Create a dialogue where appropriate and seek tenant input on decisions affecting the property or the community.
Resolving problems quickly – tenants want a landlord who is responsive to their requests; if a problem is reported, landlords need to address it quickly to avoid matters escalating. This way, the problem is contained and does not escalate into a more significant issue, and the tenant feels that they are getting value for money.
Consider providing value-added services where possible, such as employing a gardener to maintain the garden. This way, it takes the responsibility away from the tenant and presents the property well, helping relations with neighbours. If it is shared accommodation, consider employing a cleaner to clean the communal areas.
Small changes to the property can have a lasting impact and positive benefits to tenants. For example, installing electric sockets with USB plugs create convenience, allowing for tenants to charge their devices with ease.
Installing high-speed broadband with a good signal around the property to support the tenant if they work from home or just stream content during their downtime.
Additionally, allowing people to keep pets in the property could help retain a tenant or even attract new ones. According to Rightmove, demand for pet-friendly rental homes jumped by 120% from August 2020 to August 2021. Furthermore, Chestertons reported that 3.2m UK households had bought a dog since the pandemic in 2020. This provides an opportunity for landlords to attract responsible tenants who could be offered longer tenancies.
Where appropriate consider renting out properties to families. According to the English Housing Survey 2021-22, 19% of households in the private rented sector had dependent children, compared with 29% in the social rented sector and 37% in the owner occupied sector.
These small changes and value-added services could attract new and retain current tenants, providing the following benefits to landlords:
- Steady cash flow: offers protection against difficult times. By keeping good tenants, void periods are reduced.
- Property care: good tenants are more likely to take care of the property, which saves on maintenance costs.
- Save time and money: reduce the time and cost of looking for new tenants.
- Selling property: make it easier to sell properties with a good quality tenant.
- Landlord reputation: enhances the importance of the landlords who look after their tenants.
Landlords currently face a difficult balance between making a profit from their properties and maintaining them in a way that attracts and retains tenants who feel comfortable and satisfied living there. By developing and maintaining good relationships with tenants, which makes them feel that they are getting value for their money and feel at home in the property and may be less likely to move, which in turn could help landlords reduce their long-term costs.
A Take on the Specialist Green Mortgage Market