Given you don’t have to spend much time with your tenants, you may think it’s not important who they are. If they pay their rent on time, they’re ok – right? Not quite.
Good tenants can actually mean the difference between a high and a low-performing investment. In fact, finding a great tenant may be just as important as finding the perfect location for your investment property. Here are some reasons why it’s worth trying to attract high-quality tenants.
Minimise your maintenance costs
Good tenants will treat your property like it’s their own, so you’re less likely to find unpleasant surprises when they leave. By respecting your investment and keeping it clean and tidy, it will show less wear and tear as the years go on.
Quality tenants may not bother you with small maintenance issues such as looking after the garden. This can save you both time and money. And by alerting you as soon as they see a necessary repair, you may avoid a potentially larger issue down the track.
When a tenant pays their rent in full and on time, it saves you both time and stress. You won’t need to chase them for payment, and it will assure you a healthy cash flow. Quality tenants are also likely to see out their full notice period when they decide to move out. This means your property won’t be left empty and you won’t unexpectedly find yourself without an income.
Every time a tenant ends their lease it can cost you money. Advertising and open-house inspections add up, and when your property is empty you don’t have rental income coming in.
Keep the peace
Even though you don’t have to live in the neighbourhood, it’s important to be on good terms with those who do. After all, nobody wants to live next door to a loud rock band. Happy neighbours will look out for your property and be less likely to make malicious complaints.
A good tenant can help you forge a strong relationship with the community surrounding your property. This investment will continue to reap benefits long after the tenant moves out.
A consistent and reliable tenant will look after your property and help you generate the best returns from your valuable investment. When you attract a high-quality tenant, you can rest easy knowing that your investment is in good hands.
If you’d like to know more about how to make the most of your investment property, your Geelong Mortgage Adviser is a great resource.