Most experienced property managers and landlords will agree that their tenant turnover is among the largest expenses for property owners.
It shouldn’t come as a surprise that once you have found good tenants, your next target is going to be to keep them around for the long haul. The best tenant retention strategies are bound to directly reduce your vacancies and operating expenses.
With that said, the following are some proven methods of improving tenant retention:
Maintain Excellent Responsiveness and Communication
This is probably the simplest and often overlooked of strategies to improve tenant retention. There should be absolutely no reason for your tenants to be unsure about how they can submit maintenance requests or perhaps ask simple questions. Also, they shouldn’t have to wait a week to hear back from their landlord or property manager.
Here’s a brilliant idea. Design a welcome packet for all of your new tenants and include a list of methods of contacting you. These can include an online tenant portal, email, phone, and text. Also, you should train your property managers to be clear and prompt whenever they are responding to your tenants’ questions or requests.
Keep Your Property In Perfect Condition
Staying updated about ongoing repairs, maintenance, and capital improvements could be another effective way to increase your tenant retention and satisfaction.
When your tenants notice that you are very prompt in responding to repair and maintenance requests, or perhaps sometimes go beyond these ongoing services (like offering pest control, filter replacements, and grounds maintenance), it is clear that you care about them.
On the other hand, many of your tenants will choose not to renew their lease when it takes weeks for simple problems to be fixed while the property’s condition seems to be on the decline. This particular strategy will not only help retain your tenants but also improve the longevity of your property. Little by little, you will also be able to minimize your operating expenses when your tenant turnover decreases.
Introduce Incentive Programs for Lease Renewals
Every time your tenants are faced with lease renewal, they consider whether they should stay or leave. Often, a few external factors out of your control are bound to influence this decision. However, the things that you can control may help change their mind for the better.
For instance, you could start offering your tenants the option to avail gift cards for local restaurants or shops or cash bonuses for renewing their lease. These offers should come at minimal cost to you and should be enough to motivate tenants to renew their lease.
Another great option is to let them choose from a predetermined list of property upgrades, including new flooring, new appliances, window treatments, or new paint. In either case, you will have to take your time to do a cost-benefit analysis for each of these incentives.
Final Thoughts
Hopefully, after following these tips, you will be able to retain your tenants, attract high quality tenants and maximize your profits.
If you’re looking forward to trying out any of these tips in your rental property, you can always delegate these tasks to your property manager or hire the right professionals for the task at hand. The only thing you will be responsible for is to offer your potential tenants more affordability, personalization, and authenticity instead of worrying about your safety.
If you haven’t hired a property manager already, click here to learn more about our services and how an experienced property manager can share some of your burdens.
