At first glance, a long-term tenant sounds like every property owner’s dream: consistent rent, no turnover costs, and less vacancy risk. But in reality, a tenant staying in place for years without the right management practices can quietly erode your bottom line and your property’s condition.
Here’s why long-term tenancies aren’t always the slam dunk they seem — and how you can protect your investment while still retaining great tenants.
1. Wear and Tear
With any tenant, there’s some natural wear and tear to the property. But long-term occupancy often defers maintenance, causing minor problems — like dripping faucets, slow leaks, worn carpet, and faded paint — to become costly, time-consuming repairs when the tenant does move out.
Our Solution: We make a habit of visiting properties regularly, even if issues aren’t reported, to perform preventative maintenance (like HVAC checkups and gutter cleaning). At least once per year, we do a formal walkthrough and inspection to make sure the tenant, owner and management company are on the same page with respect to the property’s current condition and the work needed to keep it well-maintained.
2. Under-Market Rents
If a tenant’s rent hasn’t been adjusted regularly, you may be losing thousands each year. In rent-controlled areas or tight markets, under-market rents can seriously impact resale value or your ability to refinance.
Our Solution: Again, proactive annual reviews are the key! Our team understands how important it is to review the tenancy as a whole each year: What are the current market conditions? How has the tenant performed, in terms of taking care of the apartment and paying on time? This review allows us to determine an appropriate increase in rent. Doing this in small increments, annually, keeps returns healthy without causing sticker shock for the tenant.
3. Entitled Attitudes
Long-term tenants can start to feel like they own the place — and not always in a good way. They may resist inspections, refuse upgrades, or push back on new policies because “that’s not how it’s always been.”
Our Solution: Engagement prevents entitlement. Use regular check-ins, tenant newsletters, or surveys to gather feedback and maintain a healthy, professional relationship. Engaged tenants are more likely to cooperate when policies change.
Final Thoughts
For tenancies over five years, another consideration is major repairs and remodels — updating paint and carpet, remodeling bathrooms and kitchens, and flooring replacement and repair. If the market is appreciating rapidly, it may make strategic sense to prioritize those renovations over “keeping” a tenant, since those changes can help you keep your unit closely aligned with market value.
Don’t let a great tenant become a great, big problem later on. With proactive management and strategic decision-making, long-term tenancy can be positive for everyone.
