It is in a homeowner’s best benefit to have a typical rental situation that includes:
- Finding a quality tenant within hours of posting a rental ad.
- The tenant pays his rent timeously every month.
- A tenant that hardly ever complains.
- The tenant that typically remains in the rental property for at least twenty years.
While such a scenario is scarce, it is not improbable. These six reasons are why it is beneficial if you have a tenant that renews his lease:
1. Avoid The Process Of Looking For New Tenants
It can be frustrating to fill the vacancy quickly, and it could be time-consuming finding a quality tenant. When you’re succeeding in having your tenant renewing their lease, it can save you the hassle. You won’t have to go through the entire process of:
- Posting Ads
- Showing prospective tenants, the property
- Screening tenants
- Drawing up of lease agreements and getting them to sign
- Collection of rental
- Explaining building procedures, expectations, and lease clauses
- Going over a new move-in checklist
2. Avoiding Unnecessary Costs Associated With A Vacancy
Not only is it time-consuming interviewing interested tenants, but it also costs money to do so. Marketing costs and holding costs can add up.
Holding costs are:
- Lost rental every month that the property stays unoccupied
- Still liable for paying property taxes, insurance, mortgage, and utility bills
Marketing costs are:
- Posting ads online or in printed media
- Hiring an agent to find the perfect tenant
3. Evading Apartment Turnover
When your tenant renews his lease, you can circumvent the need for having to turn over the apartment. If you are contemplating property management in Perth to help you with placing the unit on the market to attract tenants, it must be in excellent condition. With keeping your current tenant, you only have to do routine maintenance as opposed to overhauling the apartment. This includes tasks such as:
- Cleaning the unit
- Painting the unit
- Re-staining the hardwood floor
- Replacing damaged tiles
- Fixing holes in the walls etc.
4. Increasing The Rental Upon Renewal
In most states, you are allowed to increase the rental amount by a specific percentage upon renewal. You’ll have to give the tenant notice of the increment at least thirty to sixty days before the lease renewal.
5. Current Tenants Are Familiar With The Rules
If your tenant renews his lease, you don’t have to explain the rules to a new tenant. The new tenant must be familiar with the rules, for instance, no excessive noise at certain hours or the procedure to follow when repairs need to be done. The existing tenant is already knowledgeable with the terms of the lease. They know when the rent must be paid and will understand the procedure in contacting you about maintenance and repair issues.
6. Keeping Quality Tenants Is Ideal
While a landlord would prefer a problem tenant to move out, the opposite is exact when you have a quality tenant. It is perfect to have a tenant that doesn’t complain, adhere to the rules, look after your apartment, and pay their rent every month. You never know what to expect from a new tenant despite doing a thorough screen.