If you’re an experienced buy-to-let landlord you probably already know the value of a good tenant. That’s a tenant who pays rent on time, makes only reasonable demands and treats your property with care and respect.
Such tenants are like gold dust. They can save a landlord a great deal of money and time in many ways – and even more so if you can hang onto them and therefore avoid periods without a tenant and the expense of hunting for new ones.
Making a little effort to keep great tenants can be seen as good business insurance, insuring your BTL property by keeping desirable tenants. How you do this is pretty straightforward; the main difficulty for many landlords is simply taking good tenants for granted and not making any sensible efforts.
Here are some simple steps you can take to hang on to good tenants
Don’t be greedy – When it comes to fixing the rent, either at the start of a tenancy or at renewal, think about how much cash can be saved by having a low-maintenance tenant in place: someone who doesn’t cause hassle and who pays every month on the dot. If you use a letting agent, you won’t need to pay one to find you a new tenant if you can hang on the excellent one you have. But the biggest expense you’ll avoid by getting them to stay on is having your property empty, a so-called void. Even a short void can have a fairly dramatic effect on a BTL landlord’s yield.
So, when you’ve taken all that into consideration, think about accepting a little less than the market rate for your property. Run the numbers and work out what a good tenant is worth to you in time and cash and then set your rent accordingly in the context of the current market rate.
Be early with the renewal – once you’ve decided to go in a little under the market rate, then make sure that you let your tenant know the good news well before renewal. They will know your agreement is coming to an end and many tenants will start shopping around for other properties, if only to see what else is on the market for what they are currently paying.
Unless the rental market is depressed, they’ll also be expecting a rent increase – another reason for them to take a look at what else is available. By offering an attractive renewal rent good and early, you may well persuade your model tenant that shopping around isn’t necessary. So, if your rental offer is attractive, communicate it a good two months before the current tenancy agreement expires.
Be accessible – Make sure your tenant has an easy way of communicating with you. If something goes wrong, or they need a quick answer to a simple question, the tenant will appreciate it if they can pick up the phone and speak to you. So, if you’re dealing with a good tenant who you know will act responsibly, you should encourage them to call you when they need help. They should be provided with an email address, a landline number and a mobile number. Return calls promptly, preferably within the hour. This will make you stand out as a good landlord.
Fast response – Responding promptly to phone calls or emails is one thing, but it won’t get you far if you don’t also attend to the problem the tenant is telling you about. Dealing with problems quickly will also mark you out as an above-average landlord. There are few things more annoying for a tenant than waiting and waiting for, say, a boiler to be fixed, or an electrical fault to be sorted out. Show you are professional by acting fast. That means that you should have a list of reliable trades people already lined up to cover most eventualities. Make sure, too, that your landlord’s insurance is up to date and you have the right cover, as a problem highlighted by a tenant may mean you need to claim.
And, if a solution can’t be offered quickly, let your tenant know what is happening. Don’t just sound like you’re making excuses, but explain the problem and what you’re doing to resolve it. Good communication, in a business-like way, is a huge plus.
Stick to your word – If you say you’ll do something, then make sure you do it. Simple enough advice maybe, but it’s all too easy for an undertaking made in conversation to be forgotten later. Show you’re a good landlord by attending to details that have been agreed. If you say a kitchen will be professionally cleaned before move-in day or a carpet will be replaced, make sure they are.
Be businesslike – It’s important to be efficient in your actions but also professional in the way you deal with your tenant. Being too friendly can be off-putting to many tenants. You have a business relationship in which the tenant is the customer, so they should be treated as such. Being direct, open and straightforward is nearly always the approach from a landlord most appreciated by a tenant. Equally, it is downright stupid business sense for a landlord to be rude or offhand, so politeness whatever the circumstances is a no brainer.
Show appreciation – Say thanks to your good tenant. There’s no need to go overboard, but showing appreciation is always a positive. If, when you inspect your property, you find it’s in unusually good order and condition, let your tenant know this by a sincere thank you, preferably in writing. Tell them they are exceptional tenants and that you really appreciate it. If they’re good tenants, they’ll already know it; but anyone likes to be appreciated.
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