Tenant Retention Tips

July 1, 2020 admin

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Effects of Rental Vacancies

When your rental properties sit vacant, it can be quite costly. More than likely, you will still need to pay the mortgage payment. Add on the cost of cleaning or updating your rental property, as well as your time devoted to advertising and holding open houses. Then comes the time you will need to put aside for screening tenants to make sure that they are a good fit for your property and stay for a while. Poor tenant retention can mean a significant loss of income for landlords.

Know the Market

If it has been a while since you’ve seen the inside of rental properties, other than yours, it may be time to explore the market. Some suggest that landlords attend open houses for rentals in the neighborhood surrounding your rental property. Look for what stands out to you. How does your rental property compare to others in the area? Is your rental property priced comparably for what it has to offer?

Networking Tenants

If you own a multifamily building or several single-family homes in the same neighborhood, look into networking with your tenants. Offering a referral bonus could be an effective way to increase your tenant retention rate. See if your current tenants have friends or family members who are looking for a new place to call home. Providing vouchers to the incoming tenant can help to offset their moving expenses. You will be out far less than the costs you could incur if your rental property were to remain vacant for weeks or even months.

Building Relationships that Last

While it may sound counter intuitive, there is some support for raising rent. For instance, if you have a tenant who is on a month-to-month lease, offer the tenant the option to either change to a year-long lease for a smaller rent hike than what would occur on their month-to-month lease. Additionally, you can see if your tenant wants to renew for a two-year lease term for a smaller rent increase during their second half of the lease. This will boost your tenant retention rate significantly. In the long run, it would be more economical for both you and your tenant to agree to the two-year lease term. Less headaches from having to list your rental property and screen tenants too!

Value Your Tenant’s Design Ideas

When it comes to feeling at home in a rental, tenants may be more likely to stay longer in a rental that they find welcoming and matches their style. Is there an accent wall that is painted a garish color? Are the cabinets an outdated avocado green? While you may love that look, your tenants may not. As a rental property owner, you should be concerned about the structure and maintenance of your property, but it may be a good idea to give your tenant some input too. Landlords who are open to minor changes to the interior or exterior, such as a new coat of paint on the interior walls or some flowers planted outside, are more likely to attract long-term tenants.

Prompt Responses Equal Happy Tenants

Maintenance issues are going to happen, and often at the least opportune times for both you and your tenant. If such an issue arises, tend to your tenant’s calls for help or assistance promptly. Swift actions can help your tenants to feel heard, and can also save you costly maintenance repairs down the line.

Conclusion

Letting your rental property sit vacant can have serious negative repercussions. Sinking tenant retention rates can mean a loss of income. Taking some time to tend to the needs of your tenants, working with them on a lease term that is financially lucrative for both you and your tenant, and networking can make your job easier. Treating tenants with respect is what the people over at The Property Manager pride themselves in delivering as property managers. Take a minute to see how we can help to make your landlord responsibilities easier.