We all have experiences and stories about bad tenants; sometimes we share them with colleagues and other landlords during our weekend brunch or coffee breaks.
But what about the good tenants? You surely want them to stay in your property forever! They pay their rent on time, renew their lease in advance; take care of the property as if it were their own, manage any minor maintenance issues and they even add value to the property by upgrading the garden for example. It is very rare in the Dubai tenancy market to find a tenant like that, but if you find one, you have to keep them!
It makes perfect sense to keep the same tenant in your property against having a new tenant every year. In addition to losing rent between the tenancies, you have to consider the cost of marketing, cleaning, painting etc… It is easier and more cost effective to keep the current tenant and simply renew the lease.
Always communicate
Keep in touch with your tenant, send those greetings for Eid or Christmas, take note of their birthday and send them a nice message, it costs nothing and it is always appreciated. Connect with them before the lease expiry to know their plans regarding the renewal. Avoid phone calls only if it is necessary, a simple email or text message will do, keep smooth formal communication and do not become friends with your tenant.
Offer discounts
Everyone loves discounts! Offer a rental discount in exchange for rent renewal to a good tenant. You can also offer one month rent free which will keep the rent price unchanged. Tenants who thought about moving will be willing to stay if they are offered a good renewal deal.
Upgrade your unit
Improving the property benefits the landlord and the tenant, improvements include any permanent upgrade to the unit. For example, a fresh paint coat, new kitchen appliances, landscaping the garden or adding a BBQ area. Installing some energy saving bulbs and devices will save your tenant hundreds of dirhams on DEWA bills! Improvements add value to your investment and the tenant will enjoy a better living space.
If you let your current good tenant leave, there is no guarantee that you will find new one as good as the previous and finding new tenants can be tiring, time consuming and can cost you a lot of money.
Encourage a good tenant to renew their lease by offering incentives. By doing so, you are demonstrating that you are an attentive landlord; this will ultimately make your property investment worthwhile.