Keep your tenants happy or risk losing them in droves: life in a flooded apartment market

Landlords must work harder than ever to retain tenants in today’s apartment market or risk losing them in droves, body corporate experts have warned.

With property experts predicting rents could fall as much as 10 per cent in the next 12 months and Brisbane’s vacancy rate sitting at 2.7 per cent for houses and 3.1 per cent for units, it’s unsurprising that 2017 has been dubbed the “year of the renter“.

Archers the Strata Professionals director Andrew Staehr has urged unit owners, investors and property professionals to place as much attention on tenant retention as attracting renters.

“There are numerous reports of the out-of-the-box incentives real estate agents are offering to attract tenants in Brisbane, including offering two weeks’ free rent, free gym memberships and complimentary TVs and iPads,” Mr Staehr said.

“But, in a very competitive apartment market, it is not good enough to simply lure renters in.

“Industry professionals and landlords must now ensure they are doing everything they can to retain them after the lease is signed – particularly if they are good tenants – or risk losing them to a more attractive, quite possibly cheaper alternative, even before the lease ends.”

Mr Staehr said investing time and effort to retain good tenants could lead to impressive savings in the long-term.

“The value of attracting – and keeping – renters who consistently pay their rent on time, cause minimal damage to the property, require little contact and commit to multiple lease cycles should not be underestimated,” he said.

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Tess Hill is a 27-year-old professional who rents in a Woolstore apartment building at Teneriffe.

Comfortable, reliable communication with the landlord (or building manager) is essential to her staying where she is, she says.

“It’s important that the landlord takes everyone’s concerns seriously and with respect, particularly when it comes to things like maintenance,” she says.

“Sometimes in these big buildings the owners get preference for maintenance over the renters but, where I am, we are treated equally. That’s a massive tick in my book. I’m very happy here.

“I’d feel completely comfortable approaching my property manager or owner with any requests, whether it was for hanging pictures or some maintenance issue.” 

Mr Staehr says tenant turnover leaves owners vulnerable to re-negotiating rent at a lower rate, particularly in a saturated apartment market. 

Archers’ five tips for retaining good tenants

1. Inform your tenants of the building’s by-laws

Strata investment owners should ensure there is an induction process in which the tenant is briefed on, and signs, a copy of the by-laws of the property’s scheme. This is integral to the tenant understanding the rules they will be required to live by, mitigating the likelihood of future issues. 

2. Finalise the position on pets

With rising pet ownership, owners can not only increase the initial appeal of a property, but overall satisfaction throughout a tenancy by making apartments pet-friendly.

3. Appoint an experienced, knowledgeable property manager

Owners should appoint a proficient property manager with strong customer service skills and tenant management skills who can promptly notify and resolve any issues that arise. Similarly, unit owners should treat their property manager as their business manager and assist them in doing their job.

4. Actively keep up adequate maintenance

Renters have the right to a safe, clean and well-maintained living space and are likely to stay longer in properties they are proud of, so it is important for property managers to quickly respond to any requests regarding maintenance from tenants.

5. Consider requests and feedback

If a tenant makes a reasonable request, whether it be for picture hooks on the wall, to place another person on the lease or even a slight decrease in rent, landlords should consider them. If the request is denied, substantial reasons for the decision and, potentially, an alternative should be provided.

Landlords can demonstrate their commitment to developing a relationship with their tenant by instilling an open door policy and soliciting feedback on the property, such as features that could add to its liveability.