Because of the landlords' indifference or bad attitude, tenants sometimes leave their condo before the end of the lease term and break the contract. You could have the best rental property on the market, but if you have poor management and lack of experience, you won't be able to keep good tenants. Find out the most common reasons tenants break their leases and the steps you can take to prevent those reasons from happening. Your property rental business will benefit from your attention to this detail.
It isn't always easy to find great tenants, so when a landlord does find one, they need to make sure they hang on to them for as long as they can. You won't have to worry about the hassle of finding new tenants for your rental property, and there's a chance that you won't have to suffer through the unsettling void period, either. This is a win-win situation.
On the other hand, some tenants simply pack up and move out. Although the majority of landlords would argue that there is not much that can be done to avoid being in that situation, we are not so sure. If you are aware of the most prevalent factors that lead tenants to vacate rental properties, you will be able to take preventative measures in certain areas and will be provided with food for thought in others. It is recommended that you look into it.
Reasons Tenants Leave Your Rentals
They want to move somewhere cheaper.
The costs associated with housing, particularly rents, have been on an upward trend for the past five years. Some people have finally reached the point where it would be financially beneficial to move somewhere less expensive, where they could get a lot more for their money if they rented an apartment. It's possible that the local rents have simply reached unsustainable levels; alternatively, it's possible that your particular rents are unsustainable.
Rents on the market fluctuate over time. Even if you aren't actively looking for new tenants, you should still make it a point to keep up with the latest local trends. It is possible that this will become a problem for you if the rental prices of properties nearby are 30 percent lower than yours. Ensure that your prices are competitive. Make investments in established and developing areas that still have room for expansion.
They're afraid of changes in the rental situation.
It's not uncommon for tenants to vacate a rental unit simply out of fear. It's possible that they are worried about the amount that they believe you will increase the rent to when it comes time to renew the lease. It's possible that they are worried you are going to kick them out of the apartment because they've been late on the rent a few times in the past. Or it's possible that the renters are freaking out because of the strict new property manager that you hired and brought on board.
Establish unequivocally what is expected. If you want to demonstrate to your tenants that you are a caring landlord and not a slumlord, you should solicit feedback from long-term renters who have been loyal to you in the past, connect with them about renewing their leases early, and keep the property in good repair.
They need more space.
Many people in today's society are in need of additional space as a result of the growing number of households that include members of multiple generations as well as the growing families of Millennials. After 2008, a lot of people became interested in adopting a minimalist lifestyle, but now, several years later, they are sick of living in such a restricted and confined space. According to the results of a survey conducted by Realtor.com, this is one of the primary reasons why so many more Millennials and Boomers are opting for single-family homes in the suburbs rather than homes in dense urban centers or condos.
They want to buy a home.
Many people are deciding to make the transition from renting to homeownership while the market conditions are favorable because, in many regions, the cost of renting is higher than the cost of a mortgage, interest rates are historically low, and credit scores are improving. If you can't stop it, you might as well make the most of the situation. Ensure a high-quality service at the exit. Return deposits and immediately solicit feedback on your service. Nevertheless, try to persuade them to purchase their house from you if at all possible. Your dream home can become a reality when you work with MJS Construction Group, because we offer the finest selection of dual occupancy options.
They don't like their neighbours.
No one enjoys having threatening or abusive neighbors, but unfortunately, there are some of them out there. When looking for and vetting potential rental properties, keep this in mind as an important consideration. Additionally, it is essential to maintain open lines of communication and actively pay attention to these complaints. If there are tenants causing problems in the units that are adjacent to yours, it's likely that you won't renew their leases. If they are owned by another landlord, you might want to head off potential problems by getting in touch with that landlord first.
If a tenant has a concern about their neighbors, the landlord may not be able to do much to address the issue, despite the fact that there are a number of different reasons why tenants may find their neighbors to be a source of difficulty.
Complaints from good tenants living in an HMO you own can be made aware of how their actions or behavior may affect others in the property; therefore, you should broach this topic with them. Neighbors living next door are especially difficult to deal with, but you can make good tenants aware of how their actions or behavior may affect others in the property. If you want to avoid having good tenants leave because of a problem tenant, you should make every effort to address the issue as soon as it arises.
Change of neighbourhood
Even though the other residents may not be the source of the issue, the surrounding area may no longer be able to provide what your tenants require, which may result in their desire to look elsewhere. There are far too many factors to list that contributed to this change in attitude regarding a location; however, is there anything that can be done to encourage them to remain?
To a large extent, a lot will depend on the particular reason that they have given. If they want to relocate to the opposite end of the country (or the world, for that matter) in order to be closer to family, there is not much you can do to stop them from doing so. If, on the other hand, the reasons are more workable, then perhaps an incentive to stay is all that is necessary to kickstart a change of heart.
However, one thing to keep in mind about this situation is to not be forceful about it. Leave them with an offer that you have made, whether it be a reduction in the monthly rent or an improvement to the property itself. A happy tenancy cannot be achieved by bullying the tenants into submission; the goal is not to have tenants who are unhappy in their tenancy.
Change in personal circumstances
This could be a catch-all for the reasons we've given so far, but it's still a reason that tenants frequently cite when they want to move out of a rented property. Tenants frequently cite this reason as the reason they want to leave a rented property. It might be anything, from breaking up with a partner to...well, I'll let you fill in the blanks!
What options do you have as a landlord when this issue arises as a potential ground for terminating a tenancy? The same as it has always been. Start a conversation, go over the problem in great detail, and see if you can come up with a workable solution. Although it is highly unlikely that there will be in this particular instance, you ought to be willing to try anyway, provided that the tenant is satisfactory.
As you can see, the reasons may differ greatly from one another, but there is one thing that remains consistent throughout all of them: it is essential to communicate with your tenants. The key to your success as a landlord is to cultivate positive relationships with the individuals who rent the properties you own. These relationships can be rewarding in ways that extend beyond the financial benefits they provide.
Change in finances
Alterations to a tenant's financial situation can be similar and different at the same time, just like the reasons that were discussed previously. On the one hand, the price of your property might rise to the point where it is unaffordable for tenants, while on the other hand, an improvement in a tenant's financial situation might spark the need for more space to live in.
The most obvious way to address the concern that the rent is "too expensive" is to engage in rent negotiations. Are you able to afford to accept a slightly lower rent in order to keep these tenants who cause you no problems? When taking this into consideration, make sure you don't overlook the fact that void periods can end up being quite pricey.
To reiterate, individuals who possess a diversified portfolio of properties have access to a wider range of opportunities. It's possible that you already manage another rental property in your portfolio that would be a better fit for the tenant, whether it's a more expensive or cheaper option depending on their situation. Keeping good tenants under your wing is obviously preferable, and doing so means you'll only need to find occupants for one of your properties rather than both of them. Win-win.
State of property
Oh my goodness. If your tenant tells you this, it means that you have not been carrying out your duties as a landlord to the best of your ability. The good news is that these problems can frequently be easily fixed, and the fact that a good tenant brings them to your attention by threatening to end their tenancy can serve as a much-needed wake-up call that will assist you in improving your overall buy-to-let business. Assuming, of course, that you pay attention to what they have to say.
Make them an offer to make good on any concerns they have, and implement a regular maintenance program to keep on top of small jobs so that they don't become large problems. Again, having a reputable letting agent manage your property can be helpful in this regard because the periodic inspection visits they perform will uncover problems at an earlier stage and bring them to your attention. MJS Construction Group offers the widest variety of home builder services available in Melbourne, and they can assist you in constructing the home of your dreams.
A job transfer prompts the relocation of some tenants. They want to find a rental that is affordable for them despite the possibility that their income will change now that they have a new job.
Tenants may be required to move because of job relocation. If the relocating tenant is interested in renting from you, this is a positive development; however, if one of your current tenants needs to relocate quickly, this is an unfavorable development.
- If a tenant is moving because of a job relocation, unfortunately, there is not much that can be done to prevent the move. In this scenario, it is necessary for you to make efforts to locate a new tenant who can fill the vacant unit.
- If a tenant receives a pay increase and is interested in moving into a more upscale rental property as a result of their new job, you may want to consider offering to make some improvements to their apartment in exchange for a marginally higher rent payment.
- When a tenant's income drops as a result of a job change, you can offer to reduce the tenant's rent or you can offer to let the tenant move into a cheaper apartment if you have another vacancy that is available. You can also offer to let the tenant move into a cheaper apartment if you have another vacancy that is available.
A number of tenants will move because of a change in the status of their relationship. It's possible that a divorce or marriage has altered their financial situation, or perhaps they simply want to begin life anew. People who are going through a breakup of their relationship, such as a divorce or separation, may be looking to downsize their living space, while people who are getting married may be looking to move into a larger home.
- You can avoid having a vacancy by advertising any rentals that are currently available. Give out incentives, such as a free spot to park their car.
Many renters relocate when the market becomes a renter's market, meaning there are more units available than there is a demand for units, so the tenant may be able to get a larger apartment or one with better amenities, for a lower price.
- You can try to avoid a vacancy by lowering the rent paid by the current tenant in order to keep the unit occupied.
- Provide Upgrades Instead of lowering the monthly rent, you could provide upgrades to the apartment, such as granite countertops or a brand new vehicle.
Frequently Asked Questions About Tenants
According to the poll, the majority of landlords would prefer a couple with no children, with 29% of landlords stating they would prefer to rent to that demographic.
The process of eviction is a legal one that has to be carried out through the courts and requires the assistance of a lawyer. It is against the law for a landlord to evict a tenant without first following the appropriate legal procedures. If there is a written lease agreement in place, the landlord may decide to terminate the lease if the tenant violates any of the terms or conditions of the lease.
Often non-payment of rent, rent agreement violation, property damage and illegal activity are key grounds for a tenant eviction.
If you feel that a tenant is violating health and safety conditions and causing damage to themselves, other people, and to the property, then you can tell them how to clean, and how often they should clean their home.
The first step to take in evicting your tenant is to have your lawyer serve him with a notice to quit, if he is already 6 months in arrears of rent or according to your agreement with him. The notice to quit is a statutory requirement for the termination of all forms of periodic tenancies.
Here Are Seven Tips On How To Keep Your Best Tenants Longer:
Address Maintenance Concerns Quickly
It is extremely important to maintain a positive relationship with your tenant, particularly if you intend to request an extension on their current lease. Your tenant might be more receptive to your proposal if you take preventative measures with regard to property maintenance and carry out property inspections on a regular basis.
Few things are more frustrating for a tenant than having unaddressed maintenance requests. You need to demonstrate to them that you care about providing them with a pleasant environment in which to live. When your tenant is considering whether or not to renew their lease, this may be a significant factor in their decision. Incentives that do not put a strain on the landlord's finances, such as having a professional cleaning service clean the carpets or perform deep cleaning, can be very appealing to long-term tenants and may make them feel appreciated.
In addition, keeping up with the unit's maintenance and addressing any problems as soon as they arise will help you spend less time making repairs in the event that the unit needs to be turned over. The condition of the unit should be inspected on a regular basis so that you can stay on top of any maintenance issues that need to be addressed (even if the tenant may not have noticed them) and to prevent smaller maintenance tasks from developing into more serious problems.
Be A Good Landlord
When it comes to tenants, you should never discount the significance of the human element. If you come across as someone who is friendly and willing to cooperate, the likelihood of your renters wanting to remain in the property increases. This is true in all aspects of life, but it is especially important if you want people to be happy sending you money every month.
Maintain punctuality in your responses, and do everything you can to make it simple for the tenant to get in touch with you. Keeping the lines of communication open will help clear up any misunderstandings that may arise and will lead to an overall improvement in the tenant-landlord relationship. A tenant will feel much more at ease in the rental unit if they are treated with courtesy and respect by other occupants.
For instance, if you need to make repairs on the unit, you might want to think about having workers come while the occupants are at work so that you don't disturb their tranquility. Because of this, the more a location resembles one's own home, the longer a quality tenant is likely to remain there. It is more likely that your tenants will respect you and your property if you have a cooperative attitude and set the expectation for how you want to be treated in return.
Know What Amenities Tenants Want
Internet with a high bandwidth. Open floor plans. A lovely outdoor area to relax in. It is essential to have an understanding of the features that modern tenants seek in a rental property in order to improve one's ability to provide what the market requires.
The lifestyle options available are a significant deciding factor for many tenants, particularly younger generations such as Gen Z and Millennials, regarding whether or not they will remain in their current residence. Even though you own the property, the tenant ought to be able to feel as though it is their own home there. There are a number of different ways in which you can help promote a more tailored atmosphere, and by doing so, it may encourage your tenants to stay at your property for a longer period of time.
You may be able to attract better long-term tenants and serve as an incentive for them to renew their lease if you give some thought to the features that tenants care about the most and offer those to them. For instance, if your rental property is situated in close proximity to a college or university, the typical tenant may be looking for amenities such as locked bike racks or study rooms with low noise levels. In addition, there are a number of strategic improvements that can be made to a house in order to make it feel more like a home, such as installing hardwood flooring, stainless steel appliances, and central air conditioning. If you want to bring in new tenants or encourage the ones you already have to stay for a longer period of time, investing in these renovations might be a good idea.
Be Proactive With Lease Renewal
It is essential to let your tenant know well in advance that you are interested in renewing their lease with them, and you should do this as soon as possible. Are you thinking about giving your home a makeover? No need to look any further! The MJS Construction Group is available to assist you in all of your home building needs.
- It is a good idea to get in touch with your tenant at least three months before the end of the lease to inquire about their possible interest in renewing it.
- This early notice may help encourage them to begin thinking about their plans early so that they can provide you with more notice in advance of those plans.
- If the tenant makes the decision to move, then at least you'll have time to get a head start on advertising your rental property before they've completely vacated it. If you can find someone to take over the lease, you won't have to worry about missing a month's payment of rent.
There are additional approaches you can take to convince your current tenant to extend their lease. If they decide to renew their lease, you might want to think about not raising the rent (or keeping it at a lower rate than usual) for the coming year. Ask them what it would take to convince them to stay if they give the impression that they are hesitant. This is yet another reason why it is important for tenants to have a positive relationship with their landlord. If you are able to communicate effectively with a tenant, you will increase the likelihood that they will be forthcoming and tell you which incentives are most significant to them.
They might ask for a rent reduction or some improvements to the home's maintenance system. Examine the possibility of negotiating a deal that is beneficial to both of you if at all possible. It's possible that granting a tenant's request will turn out to be less expensive for you than vacating the property and taking a chance on a new tenant. This is something you should keep in mind.
Encourage A Longer Lease
Think about approaching the tenant with the offer of a reduced rent for a longer-term lease. If they renew the lease every six months, you should consider increasing the term to a year. If they renew the lease every year, you should think about extending it for an additional year at a discounted rate. If you want to keep a tenant who pays their rent on time and is reliable, it might be worth it to forego potential profits from rent increases if it means you can keep that tenant. You need to make sure that you calculate the differences in your rental revenue so that you can determine which option is best for you financially.
Treat Tenants Fairly
Because no tenant ever wants to feel like their landlord is picking on them, all landlords need to be familiar with both local and federal housing laws and ensure that they are followed. Therefore, you need to be consistent in how you treat the people who rent from you, regardless of the racial or religious background of your tenant, as well as their sexual orientation or physical ability. In addition to this, this entails being responsive to the concerns of residents and avoiding charging excessively high rents. You have the right to charge whatever you want, but if you end up increasing prices for certain groups of people who are legally protected from such increases, you may be putting yourself in a position where you can be sued for discrimination.
Enforce Rules Without Going Overboard
You are required to put your property rules in writing before the lease is signed, regardless of whether they pertain to safety concerns, pet security deposits, waterbeds, or clogged toilets. It is in everyone's best interest to take it a step further and point out the outcomes that will result from breaking these rules. Your renter will have an easier time understanding both their responsibilities and your expectations after reading this.
Talk to your long-term tenant first before taking any further action if they start breaking the rules or policies that you have established in your rental property. You may be hearing complaints from the people who live nearby, but before drawing any conclusions, you should make it a priority to speak with your renters and get their side of the story.
Be sure to check both local and federal housing regulations, but in general, a few guidelines serve as a foundation for the fair application of landlord rules.
- Must look out for the health and well-being of the tenants.
- Should have some kind of logical connection to the goal that it was created to accomplish.
- Must be written in sufficient detail for the tenant to comprehend it.
- Must be applied equally and fairly to all of the tenants (important for multi-unit properties)
- Should not be created with the intention of evading the legal responsibilities of a landlord.
You can better manage your renters' expectations, assist them in feeling safer, and more easily evict tenants who break the rules and don't pay their rent if you consistently and equitably enforce the rules and have a clear policy regarding what happens when they are ignored.
The majority of the issues described above can be traced back to ineffective communication. The process of renting and investing in real estate can be made more enjoyable by ensuring that communication between the landlord, the tenant, and the property being rented is consistent, expedient, and uncomplicated. Always respond to messages in a timely manner, and check that your contact information is accurate to ensure that you are keeping up a good line of communication. You will be able to ensure that all jobs are kept up to date, that the tenant is happy, and that the property will continue to be occupied by using this method.