The cost of replacing a tenant is extremely high. The average amount a landlord spends on tenant turnover is almost $4,000. It can sometimes take a property manager or landlord over a year to recoup that cost.
Long-term tenants are key to maximizing your income on your rental property. The last thing you want to do is have to find high-quality tenants multiple times throughout the year. Not only will that cost you a lot of money, but it's a drain on your time.
There are numerous benefits to securing long-term tenants. This guide will go over everything you need to know to keep your property filled with high-quality people all year long.
Consistent Income
Renting your property to a long-term tenant will ensure you have a consistent flow of income. You'll have confidence that they'll pay their rent each month. You don't have to worry about lost income while you have a vacant property.
When one of your tenants moves out, you typically don't have another person in line to replace them. Your property might be vacant for weeks, sometimes months between tenants. One empty property can have a significant impact on your finances.
Tenant screening is an important component of finding quality long-term tenants. You can review their past rental history, making note of instances when they failed to pay their rent. Use this information to select good tenants to rent your property to, helping keep your income steady.
Improvements to Your Property
A long-term tenant will typically see their rented space as their own. They're likely to take care of it and potentially invest in your property.
You need to provide routine maintenance to your properties. If your tenants see you taking care of their space, they'll be more likely to do the same. A well-maintained and attractive unit will encourage your tenants to stay longer.
While your tenant might be living on your property, this is their home. The more secure, comfortable, and taken care of they feel, the more longer they'll want to stay.
Decreased New Tenant Costs
There are countless costs associated with finding a new tenant. Some of the tasks you'll have to perform include:
- Deep cleaning of the vacant unit
- Maintenance services
- New appliances, flooring, etc.
- Advertising and marketing costs (i.e. costs for ads in the newspaper or online)
- Tenant screening costs
Showing the vacant unit to prospective tenants is also a drain on your time. You might devote hours to meeting with various people, only for them not to work out as a tenant.
When you have long-term tenants, you don't have to worry about those costs. You can spend your free time exploring other money-making ventures or doing what you love.
Maintain Long-Term Tenants With a Property Management Company
Filling your properties with long-term tenants can help you in numerous ways. Your tenants will be happy with where they live. You can enjoy a consistent flow of income while providing a wonderful place for tenants in Denver to live.
Laureate LTD is here to make your life as a landlord even easier. Get in touch with us to learn more about our services for landlords and investors.
