As a landlord, long-term tenants are usually ideal. They provide a reliable and steady income from their rental payments, you know you can trust them once you’ve developed a relationship with them, and you don’t have to worry about constantly performing move-out and turnover duties.
If you have tenants moving in and out of one of your properties, that can make for a serious disruption in your income. Aside from the cost of vacancy, you may also incur the costs of repairs, commissions, cleaning, and remarketing. Just one tenant turnover can cost you thousands of dollars.
Aside from saving money with long-term tenants, you will also save time. Having one tenant in a property for a few years means that you don’t have to go through the process of finding new tenants every year. Long-term tenants are also more likely to take care of their dwelling as if it were a home they owned. That means you’ll be responsible for repairing far fewer damages than if you move someone in who is just planning on living out the terms of their lease.
So, how do you find long-term tenants? There are a few steps you can take to secure them:
Extend the lease terms
One of the easiest ways to ensure a tenant is there for the long term is to extend the terms of the lease. Most leases are made out for a 1-year rental period. Although that is the standard, it isn’t the only option for lease durations. As a landlord, you are allowed to draw up a lease for 18- or 24-months. These terms will only attract tenants that don’t plan on moving a year after they move into their rental home.
Conduct thorough tenant screenings
You can get a good idea of how long a tenant will be staying in your property by asking specific questions during the screening process. For example, if you discover that they just moved to the area for a new job or they have a child that they will be enrolling in a nearby school, it’s safe to assume that they plan on living in your property for years to come.
Look at past rental history
Past habits are good predictors for future behavior. If you see that an applicant has bounced around from apartment to apartment, that is a good indicator that they will continue that pattern. Whereas if you notice that an applicant has had three apartments in the last 10-years, they are likely to be long term renters
It’s hard to know for absolutely sure if an applicant is planning on staying long term or leaving after the terms of their lease. However, these tips will help you weed out the short-term tenants from the long-term ones.
Let Moon Ridge Property Management Find Your Long-Term Tenants
Here at Moon Ridge, we conduct thorough tenant screenings to discover which applicants are likely to be long-term tenants and which are likely to move after the terms of their lease are up. Allow us to help you find your long-term tenants the next time you have a vacancy!