Why Every Landlord Should Aim for Long-Term Tenants

Filling vacancies as soon as possible is important, but tenant quality matters more than anything. When you aim for long-term tenants, you have a better chance at renting your properties to quality tenants.

When you attract long-term tenants, you get the stability of a renter who will make your job easier and keep you profitable. 

Here’s a breakdown of why long-term renters are your greatest asset along with how to attract and keep them.

1. Reduced turnover costs

Turnover is expensive. You’ll lose money every day your property sits vacant, but you also need to spend money each time a tenant leaves. No tenant means no rent. And even one month without rental income can offset your entire year’s profit.

Short-term tenants will cause frequent vacancies and extra work on your part for every turnover. Additional costs you’ll incur when a tenant leaves include repairs, deep cleaning, and fixing small areas worn down by normal use. On top of that, you’ll need to list your property, show it, and run background checks on your applicants, all of which require time and money. When you finally find a new tenant, if they don’t stick around, you’ll have to do it all over again.

When you get a long-term tenant, you’ll only need to handle lease renewals, which are far less labor intensive than onboarding a new tenant every few months. However, if you don’t have the time or knowledge needed to attract long-term tenants, consider hiring a property manager to handle it for you. 

For instance, property management pros from Green Residential help Texas property investors maintain a profitable business by handling all the day-to-day landlord duties, including filling vacancies with high-quality tenants. If you’re pressed for time or just not interested in being a landlord, it’s a great option.

2. Reliable cash flow

Having predictable finances is important, but when you have tenants who bounce after a few months, you end up with unpredictable income. With long-term tenants, you’ll have fewer financial fluctuations and you can accurately forecast income and expenses. This is crucial for staying current on your property-related expenses and debt.

 3. Lower risk of property damage

Tenants who plan on staying where they live are more likely to treat your property like their own home. They have a good reason to keep your property in good shape, and you’re less likely to end up with property damage caused intentionally or through negligence. 

Long-term tenants are also more likely to report issues right away, which gives you a chance to fix small problems before they escalate into expensive repairs.

 4. Better landlord-tenant relationships

Long-term tenants are more likely to communicate with you. Great communication means fewer headaches. When you build strong relationships with your tenants, you foster trust and respect, and they’ll be more likely to cooperate when you need to perform maintenance, inspections, or handle emergencies.

Tenants who feel respected are less likely to ignore rules or cause disputes, and they’ll refer you if you have other rentals.

 5. Property value protection 

Since long-term tenants are more likely to take good care of your property, having them in your rentals is crucial for maintaining your property value over time. With long-term tenants, you’ll have less wear and tear, your appliances will be well kept, and you’ll incur fewer avoidable expenses over time.

Long-term tenants will take better care of the outside of your property, too, including maintaining the landscaping, keeping it free from trash, and just maintaining general upkeep. All of this will help sustain your curb appeal and support your effort to attract buyers in the future if you choose to sell.

6. Fewer legal headaches

Since long-term tenants are more likely to follow the rules, there’s less risk of having to file a lawsuit (or getting sued by a disgruntled tenant). It will be easier to enforce your lease agreement if there is a violation as well.

7. Less stress 

Even good short-term tenants can cause headaches and problems you don’t want to deal with. It’s not always their fault, either. Life happens and sometimes people need to break a lease agreement or move out on short notice. Even so, you’ll still have to deal with the stress of cleaning, missing out on rent, and going through the screening process all over again. Long-term, stable tenants eliminate a lot of stress that comes from managing short-term tenants.

 

Think long-term

Acquiring long-term tenants is the best way to save money, reduce risk, and build passive income stability. The last thing you want to do is chase late rent and manage preventable repairs. 

Although you may need to refine your tenant application and screening process, the benefits of attracting long-term tenants are clear.