Long Term Tenant Property Investment Strategy

Never under estim­ate the value of a long term ten­ant to your Prop­erty invest­ment strategy!

As we have entered sum­mer it is a reminder to all our Prop­erty Investors not to under­es­tim­ate the value of a long term ten­ant to the cash flow of your invest­ment prop­erty. If you have a ten­ant for an exten­ded period you are sav­ing your­self thou­sands of dol­lars over that time includ­ing such things as your let­ting fees, vacancy factor, repairs. Lets look at a scen­ario the aver­age rent in our mar­ket is $400 Per week.

Ten­ant stays for 1 year each over 5 year period

5 X Let­ting Fees                                                                                          $2200.00 incl GST

Vacancy Factor (cur­rent aver­age 3 weeks)                                        $1200.00

5 X Aver­age repairs to wear and tear at vacancy                            $1100.00 incl GST

 

TOTAL COST                                                                                                  $4500.00

 

Ten­ant stays for 5 years

 

1 X Let­ting Fee                                                                                          $440.00 incl GST

Vacancy Factor                                                                                          Zero

Aver­age repairs to wear and tear at vacancy                                 $770.00 incl GST

 

TOTAL COST                                                                                                $1210.00

 

Total sav­ing to Prop­erty Investor $3730.00

 

As you can see the sav­ings are con­sid­er­able, so it is well worth you work­ing with us to ensure your prop­erty is well main­tained and remains appeal­ing to the ten­ant espe­cially if you have a good ten­ant who pays rent on time and main­tains your invest­ment prop­erty well.

old tannat in house dj

On the flip­side how­ever you may need to remem­ber when a long term ten­ant does leave it is less likely that any minor repairs will be their respons­ib­il­ity as 5 years of nor­mal wear and tear would obvi­ously be dif­fer­ent than 1 year of nor­mal wear and tear. It is also quite nor­mal that the rent of a long term ten­ant is below mar­ket rate as many Prop­erty Investors see the value in a longer term ten­ant the above scen­ario does not take this into consideration.

 

You still need to take into con­sid­er­a­tion that invest­ment prop­er­ties require gen­eral main­ten­ance and upgrad­ing – such things as car­pets have a lim­ited life span in an invest­ment prop­erty, there­fore any dam­age done by a ten­ant to car­pet over that life span will not be claim­able through the Tribunal no mat­ter what the cir­cum­stances (in our exper­i­ence the tribunal usu­ally allow 7 years max­imum for carpet).

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia