Discover the reasons that most tenants move out and how to prevent it
Renting out property can be a very lucrative investment option, and for the most part, it's relatively passive, particularly if you use a managing agent. But, when a tenant hands in their notice to leave, it can cause major stress. This article explores the most common reasons that a tenant moves out of a property so that you can keep your's happy.
There is so much to assess and decide upon when reletting the property and the unknown about when the rent income will start to flow again and how good the new tenant will be. Most landlords would agree that a good tenant is worth their weight in gold and would rather keep their current tenants happy and stay in the property than go through the stress of reletting the property to someone else.
So, if you have a good tenant and don't want to let them go, you need to ensure that you provide them with a property and a tenancy experience that they don't want to leave.
Of course, not all tenants leave a rented property because they are unhappy. There are many occasions when the property simply doesn't work for them anymore. Perhaps they have to relocate for work or a new relationship. Maybe they need somewhere larger or smaller for their family.
But some tenants are so unhappy that they would rather go through the upheaval of moving house than stay where they are. They are unhappy, disgruntled, stressed.
It isn't easy for a tenant to move to a new home. They have to view, apply, be referenced, pay a holding deposit, pay a tenancy deposit and then pack up and move out. They have to ensure that the property is returned to their landlord in the same condition they found it in, meaning they'll have to touch up scuffs and marks, cut back the garden and deep clean the whole property. There's a lot of stress, money and upheaval for a tenant to move house, so it would make sense that they will only put themselves through that stress if they are miserable in their current property.
As a landlord, your job is to provide a home that doesn't cause this much stress to your tenants. With that in mind, it should be pretty straightforward to keep your tenant for a long time by following these tips:
Stay in touch - either you or your representative letting agent should stay in touch regularly with the tenant, visiting on occasion and being open to communication so that the tenant feels that they have a point of contact, should they need it.
Maintenance issues - Most disagreements between tenants and landlords are born from maintenance issues within the property. If a tenant reports something to you or your agent, it's because it's a problem for them. Once they have reported it, if it doesn't get looked at or dealt with swiftly, you, as the landlord, are intentionally leaving them to live in the property with a problem. It may seem like a colossal task to rectify, and it might be easier to turn a blind eye and bury your head in the sand, but the tenant has reported to you; you have a duty of care to look into it further and inform them of your plan to deal with or at the very least, minimise the issue. Most tenants feel that when they report a problem in the property, they are either a) blamed for it, b) dismissed as not a big deal, or c) ignored completely. This response is enough to sow the seeds of doubt with the tenant, and they may feel like it would be better if they moved out to a new property that doesn't have these problems. Perhaps the issue is never dealt with, and the tenant reports something else with the same outcome. Now, the tenants feel as if you're ignoring them, and you don't care whether the property is looked after or your tenants are happy living there. They are paying rent to you, and now you look like the big bad landlord who takes the money but won't fix anything. It's a slippery slope and one that can be easily avoided by simply dealing with maintenance without delay.
No right to reply - When a tenant rents a property with a landlord who has opted to self-manage without a letting agent, a tenant will feel that there is no authority or governing body to help them if something goes wrong. With a letting agent, there is a process for complaints and authorities in place to protect tenants. Of course, these are in place in some way for self-managing landlords, too, but it is a much more complicated process to navigate. The professionalism that comes from having a managing agent to oversee the tenancy gives a tenant a lot of comfort that they will be looked after properly.
If you are self-managing your tenancies and seeing a high turnover of tenants or having difficulties, it might be time to consider a managing agent to handle things for you. Tenants are happier in properties that have a managing agent, and they tend to stay for longer. Yes, this will mean a monthly cost to you for the management, but you will get back the time you have spent trying to manage the tenancies yourself, and you will have fewer void periods where you earn no rent. The month or two each year that you receive no rent could more than cover the costs of managing the properties.
Keeping your tenants happy and encouraging them to stay in your properties for longer will end the feast-and-famine rollercoaster that landlords experience when they have a high turnover of tenants.
To learn more about how a letting agent can help you keep your tenants happy, your property in good condition and your profits high, contact our team of property experts today.