According to statistics, 43.6 million people currently rent the place where they're residing. And while there is nothing wrong with that, there are vastly different leasing options offered to those seeking to live in an apartment.
If you're considering offering a long-term rental agreement as an option over short-term leases, you might be wondering what the benefit of it is. Remember that as a rental property, you are trying to reduce tenant turnover; therefore, understanding one type of lease's benefits is best to help set you up for success.
Read on now and start offering the lease agreement type that works best for your current and future tenants.
Consistent Stream of Revenue
One of the many reasons you decided to become a rental property owner is for the consistent stream of income you receive from each of your tenants. However, if you offer short-term leases, tenants only pay rent for a short period.
This means you have to take more time to find tenants to move into these properties, which means a lull in revenue until you've found the right person and gone through the entire process.
However, when you offer long-term leases, you can ensure that you're being paid consistently for a more extended period.
The goal of having a rental property is to ensure that they remain filled or significantly filled throughout the leasing year. When your properties are vacant, they need someone to ensure they're cleaned and taken care of actively.
This means you'll spend more time spending money to maintain the properties until you find someone to move into it. Offering your tenants long-term leases helps you to reduce your vacancies.
Of course, the lease and other factors would contribute to this, but a long-term lease versus a short one is a plus for several potential tenants.
Easier on Management
The entire process can become stressful when you're looking for tenants for your properties. You've got to take the steps to market and advertise your properties to potential tenants, and hope you attract the right ones to apply for the spot.
Once you've begun to receive applications, the next step is to do your due diligence and review or vet each tenant carefully. The last thing you want to do is skip over this and allow someone to move into your property which will cause future problems.
Longer leases reduce the amount of stress and time it takes to find tenants for each property. This means that they can dedicate their time to ensuring that tenant requests are completed. This helps to increase the chances of them staying longer.
This means less paperwork for your property managers and less money spent on advertising.
Long-Term Rental Agreement Benefits
There are several benefits to offering a long-term rental agreement to your tenants. Not only is it easier for management, but it also reduces tenancy vacancy rates.
Are you in need of property management help? Do you want to offer more resources to your tenants? Contact Pristine Property Management for more help today.