While we often focus on how to find good tenants, knowing how to keep tenants happy is just as important. As a landlord, knowing how to keep tenants happy can save you a lot of time and stress. And, as a property investor, knowing how to keep tenants happy can make your investment much more stable – and profitable.
Here we take a closer look at the basics of developing and maintaining a positive landlord-tenant relationship. As part of this, we will explore the value good tenants provide and share practical ways to keep them happy. We will also outline the signs of an unhappy tenant and how you should respond when you spot them.
The many benefits of happy tenants
Put simply, knowing how to keep tenants happy makes for a happy tenancy.
Happy tenants are more engaged and more likely to look after the property as if it were their own. This should mean less wear and tear, and less money spent on maintenance, at least over the longer term. It should also increase the likelihood of issues being identified early, and reduce the risk of damage caused by negligence.
Happy tenants are also more likely to stay in place for longer. Tenant turnover can be extremely costly – in addition to marketing and reletting fees, there are also potential vacancy periods and additional wear-and-tear as tenants move out / in. In most instances, this would easily offset the additional investment required to retain your current good tenants.
5 simple ways to keep your tenants happy
The tenant-landlord relationship is often seen as complex and combative. However, there are a few easy ways to avoid tension and create a positive and productive leasing environment.
1. Maintain an open dialogue
Under the Residential Tenancies Act, there are a few key interactions you are required to have with your tenants. These are generally tied to important leasing milestones, like moving in, moving out, and periodic inspections in between. While these interactions are crucial, further effort is required to create a productive, mutually beneficial tenancy.
By checking in with your tenants regularly, you give them ample opportunity to raise concerns and provide feedback. This ongoing engagement should increase your tenant’s sense of ownership over the property and investment in its maintenance. It should also empower your tenants to request repairs, reducing the risk of serious issues developing.
2. Be responsive
An open dialogue means nothing if issues raised are not acted on – or at least acknowledged. As such, when your tenants make requests, ensure you respond to them promptly and keep them updated on progress. And, if you are not in a position to support a request, explain why and offer alternative solutions.
A good property manager can help with this, ensuring you receive and respond to tenant communications quickly. They should also be able to advise on how to deal with delicate requests and manage tenant expectations.
3. Exercise empathy
When considering them through a purely financial lens, it is easy to write off most tenant requests as unnecessary. However, being a good landlord is about more than just numbers and you need to consider your tenant’s needs. Try to see their perspective and the benefits the additional investment could provide – both to the tenant and the stability of their tenancy.
It is also important to remember that, while you may legally own the property, it is your tenant’s home. This means they also have a sense of ownership over it that you need to understand, acknowledge, and respect. This includes respecting their privacy, and ensuring you provide adequate notice before you – or any nominated representative – enters the property.
4. Show appreciation
In many ways, your relationship with your tenant is a partnership. You both have an interest in the property and need to work together to ensure it is properly maintained. You also have to rely on each other to respect your agreement and meet your obligations.
As with any partnership, knowing how to keep tenants happy is all about recognising this connection and acknowledging their contribution. This can be done in practical ways, like being open to their feedback and responding quickly to their requests. It can also be done through small gestures, like a bottle of wine or hamper of local produce at Christmas time.
5. Create stability
One of the fastest ways to undermine your relationship with your tenant – and their happiness – is creating uncertainty. If your tenant does not feel secure in their lease, they are less likely to invest time and energy into maintaining the property. They are also more likely to start looking elsewhere and taking active steps toward moving on.
To help prevent this, consider offering a longer lease term (18+ months). Also, start engaging with your tenant well before the end of their current lease term, proactively offering a renewal. You should also aim to keep the rent slightly below the market value and avoid increasing it every 12 months.
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How to spot an unhappy tenant – and what to do when you do
Do you have a good tenant in place, but are worried that they might be thinking about moving on? If so, there are a few common red flags you should keep an eye out for. Common signs of tenant dissatisfaction include:
- Sudden change in behaviour: If your tenant has previously been quite proactive but suddenly goes quiet, they could be considering leaving. If this happens, set up a time to talk to your client about their living situation and future plans. During this conversation, ask if there is any additional support you can provide to help them stay in the property.
- Reluctance to engage: If your tenant stops responding to communications from you / your property manager, they may be avoiding a difficult conversation. If this happens, acknowledging their evasiveness and directly asking whether they are planning to leave could help start the conversation. If you do manage to connect, seek feedback on any issues they are having and changes you could make.
- Repeated maintenance requests: If your tenant keeps asking for the same repairs to be made, they are likely getting frustrated. If this happens, you either need to action the request or explain why you cannot. If you are not able to action the request, set up a time to discuss the issue and potential alternatives.
- Notable deterioration in property condition: If your regular inspections show that a previously good tenant has significantly dropped their standards of cleanliness, they could be experiencing deeper issues. If this happens, follow up with the tenant to discuss your concerns and check on their welfare. Depending on the situation, you should also check whether there is any additional support you can provide.
Want to discuss this further?
If you would like more information on how to keep tenants happy, give Local Agency Co. a call. Our team of property management professionals are experts in building and maintaining positive, productive relationships with tenants. So, whether you want to create a positive first impression, or save a struggling tenancy, we can help.
CLICK HERE TO SPEAK WITH AN EXPERIENCED LOCAL PROPERTY MANAGER