Tips to keep good tenants and secure a longer lease

As many strategically timed leases are up for renewal this month in what is typically a hot rental market nationally, landlords can afford to be a little fussier but the dream long-term tenant can still be hard to find, according to Damian Collins of Perth-based Momentum Wealth.

For those property managers and landlords wanting to retain excellent tenants, it's time for effective negotiation, said Collins. He provides three tips on how to increase the chances of holding on to an existing house proud and reliable tenant for at least another 12 months:

• Firstly, at the initial (lease) sign-up ensure your property manager finds tenants who are likely to want to stay long term in your area and in your particular property. Ask: what are their long-term plans, how stable are the relationships between the tenants, how long have they lived in the city/suburb? The more stable they are the more likely they'll be happy to renew for another 12 months.
• Secondly, managing the tenant relationship during the tenancy is important. Most tenants don't want to move as it involves time and money. If your property manager has a good relationship with the tenant and you as the owner attend to repairs and maintenance in a timely manner and don't try to raise rents above market increases, most tenants generally won't leave your property due to dissatisfaction with the owner or property manager.
• Thirdly, other things you could do will depend on the state of the market. If the vacancy rates are low, most tenants are likely to be keen to stay on and secure a place for the next 12 months. If vacancy rates are high and the tenant is reluctant to sign a new 12-month lease then there are inducements you can offer, such as offering an improvement (eg. a security door or air-conditioning) in exchange for the tenant signing a new longer-term lease.