As a landlord, it’s important to maintain good relationships with tenants, and in many cases, this is possible due to a great letting agency acting as the middle party between you and your tenant. Having these positive relationships has many benefits. In this blog, we’re letting you know the benefits of long-term tenants.
How do long-term tenancies work due to the Renters’ Rights Act?
Under the new Renters’ Rights Act, landlords are no longer able to evict tenants under section 21 ‘no fault’ evictions. Previously, landlords had more power in terms of being able to evict tenants from properties, but now the rules have become much more strict. This highlights the importance of completing thorough tenant background checks and choosing reliable tenants for your home.
The new rules mean that landlords can still gain possession of their rental property, but only on specific legal grounds with clear evidence, such as selling the property, antisocial behaviour or a tenant being in rent arrears.
Another rule that was introduced under the Renters’ Rights Act was that all assured shorthold tenancies are now rolling tenancies. This can pose changes to how long tenants stay at properties, as there is no legal requirement for them to sign contracts. Previously, tenants could sign up to a 6 or 12 month contract, but now there is no set time frame. This change means that all tenants must give at least 2 months notice if they want to leave the property.
Not having set, long-term tenancy agreements may also benefit landlords, as tenants may stay longer than they originally planned to.
What are the benefits of retaining long-term tenants?
There are many benefits to lowering tenant turnover in your rental home. Here are just a few of the most important.
Less wear and tear
When you rent out a home, you have to expect some level of wear and tear, which is why this cannot be claimed from the tenant’s deposit. Stable tenants are more likely to care about the property and treat it as their own home, reducing damage that can occur due to moving properties.
Familiar tenants
Tenants who have been renting the home a while will be fully aware of processes, and may be more likely to report issues more promptly. They will also be likely to keep the home clean and cared for.
Makes compliance more simple
Having long-term tenants limits the amount of paperwork that landlords must complete when tenants swap over in the private rented sector.
What are the financial benefits of long-term tenants?
One of the most important parts of being a landlord is ensuring that it provides financial stability.
Consistent rental income
Having long-term tenants that you can trust means that you are more likely to have a consistent, steady income without tenants missing payments or having void periods in the property.
Lower expenses
Re-letting your property doesn’t just take time, but it also costs money. Long-term tenants can help you lower your advertising expenses as they stay in the property for longer.
Easier budgeting
Knowing that you have reliable tenants who pay monthly makes it easier for you to manage mortgages and property maintenance issues when they arise.
How to promote long-term tenancies
- Choose a great letting agent to support you and help you attract high quality tenants
- Ensure fair rent increases in line with market rates
- Offer flexible deposit options – read about our partnership with Reposit
- Ensure fast repairs to maintain tenant satisfaction
- Be proactive about property investment if you notice repairs during inspections
- Give the tenant a little freedom with their decoration without crossing boundaries
- Respect the tenants – give notice of arrival in line with legal obligations
- Be professional and communicate clearly
At Intus Lettings, we work closely with tenants and landlords to ensure that the relationship remains positive and encourages long-term lets. We support landlords on a let only and fully managed basis, allowing you to choose the level of support that works for you. Want to find out more? Contact our friendly team!
