Why it pays to keep a good tenant
They aren't always easy to find but, when you do have a good tenant, they are well worth hanging on to.
There are plenty of benefits of having a tenant who is reliable with their rent payments, who will look after the property, and who is reasonable and civilised in all their dealings with the landlord.
There are two very good reasons why you should do everything in your power to keep a tenant such as this:
• You can lose out financially if your tenant moves out
• A good tenant takes 95% of the stress away from being a landlord
Let's take a closer look at both those points.
Whenever a tenant moves out a new one must be found, and this can be expensive. It could involve agent's fees, marketing, and possible legal fees. Which all add up.
Then, of course, is the direct cost of the property being empty. Research by Direct Line for Business found that it takes an average of 22 days to find a new tenant with an average loss in rental income of £547.
That loss of rental income figure can vary wildly depending on location with £1869 being the average in London.
The wait to find a new tenant can also vary with 33 days being the norm in Liverpool. It doesn't stop there
Apart from the costs mentioned above there could also be long-term financial implications when a good tenant moves out.
As we have seen, when a property is empty it isn't producing income. The race is on to install a new tenant.
Unfortunately, if due diligence isn’t performed, or you are just unlucky, you could end up with the tenant from hell and not the star who has just left the building. And that could get very costly.
A bad tenant can become very expensive very quickly. Missed rent payments, possible repairs because of damage and the cost of eviction proceedings can be huge.
Of course, if a dispute drags on the loss of rental income increases exponentially. All adding to the financial burden which has been growing ever since your good tenant handed back the keys.
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Finance, or the loss of it, is important but don't under-estimate the value of a stress free relationship with your tenant.
Good and bad tenants are polar opposites in the stress levels they cause a landlord. On the one hand you are content in the knowledge that the rent will be paid on time and any issues will be worked out civilly.
On the other you never know when, or if, the rent will be paid and any interaction with the tenant will end in a dispute with your stress levels going through the roof.
We all want an easy life without conflict. A good tenant can go a long way to providing that.
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If you are interested in having a trusted agent manage your property call us on 0333 8000 210 for more information.