5 October, 2023
Look after your good tenants
A LEADING real estate brand advises that to retain quality tenants, maintaining a good relationship with them is vitally important and is generally achieved through being accommodating and open-minded.
Re/Max Australia public relations manager Lyn Cox said losing a good tenant could impact on the landlord’s finances.
“In this scenario, a landlord wants to increase the rent to $650 per week but the good tenant they have in place is already stretched and cannot pay the extra $60 a week,” she said
“So, the landlord decides to list the property for rent on the open market, but with all things considered, the costs incurred through the process are in excess of $2500 for the landlord.
“And the quality of the new tenant long-term is still unknown. You have to ask yourself: is it worth the risk?”
Ms Cox’s’ tips include:
Allow the tenants to create a home for themselves
Fix any problems in a timely manner
Provide options for pets, if possible, making sure the appropriate clause is present in the lease
Consider green upgrades
Take out landlord insurance.
“Sustainability features and upgrades can help keep quality tenants long-term,” Ms Cox said.
“Energy efficient upgrades are attractive because of a potentially reduced electricity bill,” she said.
“When a landlord is paying for the electricity, installing solar panels might be a way of increasing cash flow, but solar panels may also add to maintenance costs.
“In some Australian states, properties with water saving devices can pass on water usage costs to the tenant but not so in others.
“In all situations, you need to weigh up the cost of installing devices against the savings to determine viability.
“Some practical green upgrades that are not so costly include having energy-efficient appliances and sealing windows and doors to help reduce airflow inefficiencies.
“Even with the best tenant in the world, your investment property needs to be properly insured.
“Landlord insurance protects investors from potential lawsuits, any potential loss due to damage, and other risks.
“Unbelievably, a study from the Insurance Council of Australia showed that only around three in five rental properties are covered by landlord insurance.”