Lease Agreements: The Benefits of Long-term Tenants

Lease Agreements: The Benefits of Long-term Tenants

The average tenant stays in one place for just over two years. How long have your tenants been on your property?

Many landlords don't understand how valuable long-term tenants can be, so they don't make an effort to keep their reliable tenants around. We're here to talk all about the benefits of long-term tenants.

Read on to learn more.

No Need for Multiple Background Checks or Tenant Screenings

When you get a new tenant on your property, whether you have a standard rental or a vacation rental, it's in your best interest to screen the tenant and do some sort of background check.

You want to know that the person joining your property is safe, likely to pay rent on time, and otherwise reliable.

Background checks can be expensive and time-consuming. When you have a long-term tenant, you only have to do it once.

Consistent Rent Payments

All good landlords know the value of one great long-term tenant, but some newer real estate investors are shortsighted. They think that it's better to have short-term tenants so they can hike up the rent every time someone moves out. This is a huge mistake.

It's true that your long-term tenant may be paying a lower rent than you could get from a new tenant, but your long-term tenant has been consistent. They've never missed a payment so your income has never gone down.

The potential for a higher rent is tempting, but it's not worth losing consistency.

Less Frequent Marketing Costs

When you have a vacancy on your property, you're losing money until you fill it. If you're in an area that's easy to rent year-round, this may not seem like a huge problem, but do you want to take that risk?

Marketing your property costs money and it takes time. You may have to take new photos, start a new social media campaign, and rewrite your old listing to update it for new tenants.

As long as your long-term tenants stay in place, there's no need to spend money on marketing.

Lower Maintenance and Cleaning Costs

Every time a tenant moves out, you have to have someone clean the property and perform basic maintenance so it's ready for the next person.

For people who own short-term rentals, these costs add up. A cleaning company can cost hundreds of dollars depending on the size of the rental unit.

Long-term tenants may end up with slightly dirtier spaces upon moving out (after all, they've lived in one place and treated it as their own home for a long time), but you only have to pay one cleaning and maintenance fee before your next tenant.

Long-Term Tenants Are the Best Tenants

As a landlord, don't let yourself be swayed by the potential of higher rent payments. Your long-term tenants are reliable, so it's best to keep them around.

Are you looking for help managing your Honolulu real estate investment? We want to help you! Contact us to learn all about our property management services today.

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