Tenant Retention Ideas and Tips
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Obtaining new tenants can be a costly affair for landlords. If tenants are dissatisfied, given today’s market, they can easily seek new space. It is always the preferred option to retain good tenants – those who pay their rent on time and cause little or no problems. Maintain a High Occupancy rate and ensuring to avoid Vacancies is crucial in maintaining a solid Net Operating Income.
Why are long-term leases good for landlords?
- They reduce the potential of ‘void’ periods between tenants
- Extended vacancy or frequent tenant turnovers are expensive and can create unfavorable market perceptions
- Long-term leases reduce the risk of getting an undesirable, marginal credit tenant – if you’ve got a good one, keep it!
- You already have an established relationship with your current tenant and both of you understand the expectations you have of each other
- There will be less credit and reference checks to perform
- The fewer times furniture / fixtures are moved in and out of a property, the less likely there is to be wear and tear or minor damage to door frames, carpeting / floors and paintwork =less replacement costs
- Reduces the landlords cost of capital required for new tenants
- Asset pricing is a function of the quality, quantity and durability of cash flows. Longer leases = more stability (assuming a credit-worthy tenant) = less risk = higher price
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