We will give you 5 good reasons to look after your top-quality tenants.
1. Known quantity - they are known to you, as in their past behaviour is a good indicator of future behaviour. Who knows what you will get if you seek to obtain new tenants.
2. Less wear & tear - as they wont be moving out and someone moving in, it reduces the chips on walls, scratches on surfaces and general wear and tear which is inevitable with people moving in and moving out.
3. No marketing costs - advertising on domain, realestate and other online portals is not cheap. Consider this among all other factors. This could be from $150 - $500.
4. Time, money and stress - the 'leasing' period is a stressful time as you (or your agents) are constantly are negotiating with prospective tenants - also they are negotiating with current tenants for reasonable access and presentation of the property
5. No vacancy - probably the most important reason! Having no vacancy means (obviously) that every day your property is occupied you are getting that daily rate. Typically, changeover of tenancies in Sydney Metro may be from 3 business days to 4 weeks (depending on a few factors).
In terms of rent increases, think carefully about losing current tenants versus gaining new tenants who will pay more. For example, if your property is let at $500 p/w, a 2 week vacancy will be $1,000. In comparison, if you implement an increase of, say, $20 p/w over 52 weeks, this works out to be about the same ($1,040) – and of course this monetary comparison doesn’t include the unknowns and factors from above. In that case, is it really worth losing your current tenants?
In summary - think about your current tenancies and determine, is that rent increase worth it, is it appropriate, and are your tenants worth holding onto?
Give me a call if you would like to discuss your unique circumstances!
Daniel Bligh - (02) 8315 2070