According to Zillow, 74% of American renters hadn't moved property in the prior 12 months.
Despite rising rents, tenants often choose to stay put because it's more affordable than moving to a new home. And property owners can also benefit from tenant retention too.
Read further to learn a few significant benefits of signing long-term lease agreements.
Stable Income
Being able to rely on a regular income can give a landlord peace of mind. They'll experience less vacancy risk if they manage to retain long-term tenants. Minimizing "void" periods during which you'll earn nothing on your property is essential for managing a property successfully.
Signing a long-term lease agreement might not appear as lucrative as getting new tenants through the door, but you shouldn't underestimate the value of knowing you'll be guaranteed income for the next 12 months.
Save a Lot of Time and Money
The process of finding a tenant can be laborious and stressful. Signing a lease renewal with the current tenant can save property owners a lot of time, energy, and money.
As well as potentially losing money on an empty unit, you may have to spend money advertising it. Plus, you should also consider viewings, tenant screenings, and admin work involved in getting a new tenant through the door.
If you want to minimize the headache of being a landlord, our team of experienced and dedicated property management experts will do everything possible to help you maximize returns.
Your Property Will Be Better Taken Care Of
The longer they stay, the more likely tenants will be to treat your property as if it were their own home. They'll be more invested in the upkeep of the property, leading to reduced maintenance and repair costs for landlords.
Long-term tenants are more likely to report any damages faster than those staying for a short period. Plus, you'll face less wear and tear when occupants move in and out.
You Can Build a Relationship With the Tenants
Getting to know your tenants becomes much easier if they decide to stay longer. And building a relationship with their tenants can give landlords peace of mind because they'll have more trust in the occupants to look after their property.
No matter if it's personal or professional, mutual trust and respect are cornerstones of any healthy relationship.
It's hard to build a relationship with tenants who stay for a short period. And it's more of a challenge for both parties to understand the other's expectations of them.
Don't Shy Away From Long-Term Lease Agreements
Hopefully, you can now see the benefits of tenant retention. Finding long-term tenants provides priceless stability and can save all parties time and money. Everyone's a winner!
Did you find the information in this article helpful? Get in touch if you would like help finding tenants in San Mateo, California, ready to sign long-term lease agreements.