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As property managers, we often navigate the complexities of tenancy lengths, balancing the needs of owners with renter stability. Long-term tenancies come with both advantages and challenges, and understanding these factors is key to providing sound advice to property owners.

One of the biggest advantages of a long-term tenancy is cost savings for owners. A stable renter means reduced turnover expenses, including the elimination of frequent leasing fees, fewer vacancy periods, and reduced advertising costs. When a tenancy is long-term, a strong landlord-tenant relationship often develops, leading to better communication and fewer unexpected issues. Reliable renters also tend to take care of the property, and in some cases, may even manage minor maintenance tasks themselves. This can result in fewer maintenance requests compared to properties that have frequent changeovers, where each new tenancy typically brings initial maintenance and touch-ups.

Despite the benefits, there are important considerations for property managers to keep in mind. The longer a renter stays, the more wear and tear accumulates. Unlike properties with multiple tenancies over the same period, where maintenance can be staggered, a long-term tenancy may require significant work at the end, such as full repainting or carpet replacement. It’s important to educate owners about depreciation schedules. If they do not maintain regular updates, they may face larger costs at the end of a tenancy. Property managers should recommend depreciation schedules to ensure owners claim available tax benefits and plan for future refurbishments. Long-term tenants can become deeply attached to their home, making it harder to regain possession when needed. If damage occurs, landlords may struggle to recover costs, as courts are likely to rule certain damages as fair wear and tear over an extended period.

A proactive approach is essential to managing long-term tenancies effectively. Property managers should educate their owners on depreciation benefits, encouraging those with newer properties to obtain depreciation schedules to optimise tax deductions and future maintenance planning. Regular inspections should be conducted to ensure wear and tear is monitored and addressed progressively rather than at the end of a tenancy. Setting realistic expectations helps owners understand the potential need for refurbishment at the end of a long-term lease to maintain market appeal and rental return. Providing expert guidance by directing owners to qualified professionals who can assist with depreciation schedules and long-term property maintenance strategies is also key.

Long-term tenancies offer stability and cost savings but require strategic planning to ensure the property remains in good condition. As property managers, our role is to guide owners through these considerations, helping them maximise returns while maintaining a well-kept investment. For expert advice on managing long-term tenancies, speak to the Metro PM team today.