Jul 17, 2018
Our insights
When renting out your property, having a good tenant may be more beneficial than you think. Not only is a good tenant vital for providing you with an ongoing income stream, but they also give you the confidence that your property is in safe hands.
Long-term stability
Having good tenants who are committed to sticking around is important for a landlord’s financial security, and a good tenant is more likely to want that stability.
Every time a tenant ends their lease it costs you money. There’s the costs of house inspections and advertising fees, as well as potentially having the property empty, which means no cash flow. So having your tenants re-sign once their lease is up, is the most cost effective way of renting out your property. The longer your tenants stay, the less money and time you’ll spend trying to replace them.
Minimise your maintenance costs
Quality tenants who treat your property like it’s their own are also more than likely to cost you less in the long run. Good tenants will respect your home, and potentially show less wear and tear as the years go on.
They’re also far less likely to leave you with potential costly damage when they vacate, which means avoiding expensive maintenance and damage bills.
Good tenants also tend to alert you to maintenance issues promptly which means you may avoid potentially larger and more costly issues down the track.
Cash flow
Having a good tenant who is financially stable and has the ability to pay your rent will also save you money and provide you with an ongoing income stream. When a tenant consistently pays their rent in full and when it’s due, it saves you time and stress. If tenants pay their rent on time, you can avoid the ample paperwork and stress that comes with having to collect those late rental payments. On time rental payments can also eliminate the potential of losing money on your property and even legal fees if forced to evict the tenant.
Solid relationships within the neighbourhood
Finally, good tenants also tend to forge positive connections with their neighbours and within the community. When neighbours have strong relationships with one another and are happy with who is living in their street, they may tend to look out for your property more. It also can open a good line of communication between yourself and those in the property's area.
What next?
Want to know if you're in the right financial position to purchase an investment property? Contact Calder Wealth Management on (08) 8373 3333 to schedule your free initial appointment.
Calder Financing Broking will help you get the best possible finance deal and help you through the property process. Contact the team now or call directly on 08 8373 3333 to arrange a free initial discussion about your needs.
Written and Supplied by Cliff O’Connell of Calder Finance Broking, for more information please visit the Calder Finance website. Please note that Calder Finance Broking Pty Ltd is a Corporate Credit Representative of BLSSA Pty Ltd ABN 69 117 651 760 ACL 391237.
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