Landlords always want good tenants to stay. Continuous tenant turnover is one of the biggest nightmares a landlord can have, so getting a tenant to renew their lease is an essential goal for many landlords.
Following are six reasons why having a current tenant stay in a property can be beneficial to the landlord.
1. Avoid The Process Of Finding A New Tenant
Looking for a new tenant is a time consuming procedure. Finding a great tenant can take even more work. When you are able to get a current tenant to renew their lease, you will avoid this hassle. You will save your time, as well as save yourself from having to deal with the entire procedure again.
2. Avoid Vacancy Costs
In addition the time it consumes to look for a new tenant and interview perspective tenants, it also costs money to do so. There are few holding costs and marketing costs linked with having a vacancy.
Holding Costs Involve
- Losing the rent each month that the property is vacant
- Having to pay your mortgage (if applicable), property taxes, insurance and other utility bills
Marketing Costs Involve
- Placing the ads online or print media in order to look for tenants to fill the vacancy
- The cost of hiring a real estate advisor to find a tenant for you
3. Avoid Apartment Turnover
Another great thing about having a current tenant renewing their lease is that you avoid having to “turnover the apartment”. If you were going to be putting the unit back on the market and trying to impress new prospective tenants, the apartment would have to look immaculate. If a current tenant decides to stay, you do not have to give the apartment a complete make-over, you will simply have to do routine maintenance and repairs.
Turning over an apartment can include:
- Freshly painting the unit
- Cleaning the unit “top to bottom”
- Replacing any broken tiles
- Fixing any holes in the walls
- A complete renovation
4. Current Tenants Understand The Rules And Regulations
If you can get a current tenant to renew their lease, you will avoid having to ‘break-in’ a new tenant. With a new tenant, there will be a learning curve for both the landlord and the tenant.
A new tenant would have to learn the rules or the process for making repair requests. You will have to adjust to a new tenant, for example you have to go to the apartment to collect the rent each month, whereas old tenant pay their rent by direct deposit.
The current tenant will be aware of the terms of lease. They understand the processes for paying rent each month. They know how and when to contact you for maintenance or repairing and will understand if they violate the policy they will face eviction.
5. Wanting To Keep Good Tenants
While you prefer for your problem tenants to move elsewhere, you want your good tenants to stay. Getting a tenant who does not complain about things, who keeps the property clean and who pays their rent in time is not really easy to find, so getting this kind of tenant to renew their lease is ideal. You never know what you’re going to get when you put a new tenant in the property, even if you screen them thoroughly.
Good tenants also make it easier to attract other good tenants to the property. Good tenants want to live in a clean and quiet property with tenants who are similar to them, not in a noisy and dirty one.