The most expensive part of the rental business is tenant turnover. No matter how much a business is growing, the property manager will eventually have to deal with vacancies at one point or another, as it is a crucial part of renting.
When there is a vacancy, landlords still have to pay the expense for cleaning the room and the mortgage, which results in a loss of profit.
The only way to avoid this loss is to retain the tenants for the long haul. Tenants who stay for multiple rental periods not only reduce turnover but also decrease the amount of work, thus resulting in more profit.
Provided below are 10 tips that can help increase tenant retention:
- Keep a maintenance check: Make the maintenance of the rental apartments and rooms a topmost priority. Keep up with the maintenance repair requests from the tenants and schedule annual and routine system checks. These checks will help prevent dreaded emergency repairs.
- Know the market: Before determining the price for any rental apartment, it is important to know what the competitors are charging and why, and how this compares to the properties of one’s own business. This will help in generating ROI. As a property manager, it, therefore, helps to utilize a Property Management tool to learn about and interpret other properties on the market.
- Respect tenant privacy: It is extremely important to respect the privacy of tenants. Give tenants a proper notice before any property inspection, and call or alert them before entering their apartment.
- Conduct effective screening: Gather specific information about tenants before renting or leasing them an apartment. Ask about their income, credits, criminal background requests, and also follow up with the former landlord for a reference. If this is not taken care of, it may impact the property management business’s ROI. Use efficient property management software to make the screening process simple and easy.
- Mail an exit survey: When tenants move out, ask them to complete an exit survey form involving questions about the overall experience and any problems that were faced while they were renting the property. This will help improve the rental business and prevent more tenants from leaving.
- Communication: An essential part of any rental business is effective communication between landlords and tenants. Talk to them consistently and try to understand any concerns or complaints early on in the process, and keep a polite and kind tone when doing so.
- Provide incentives: A great way to retain good tenants is to find ways to show appreciation for them, like giving them a gift card or discount card when they move in. Kind acts or gifts imply that a landlord cares about the tenants, thus creating a healthy and positive relationship right from the start.
- Be proactive with lease renewal: Reach out to the tenants for lease renewal at least 90 days before the lease is over. This will help tenants make up their minds before they are required to leave. If they choose to not continue at that property, it is now easier to start advertising the vacant apartment in advance to someone else.
- Enhance property grounds: In the real estate and rental business, little details go a long way. Maintain the main gates of apartments and the common areas where there is the most foot traffic. This inviting property will keep the tenants happy and reflects good upkeep and maintenance.
- Avoid bad tenants: No matter how much one cares for his or her tenants, the bad renters will drive the good ones away. If the management company is getting complaints from other renters regarding specific tenants, or if certain tenants are not treating the apartment properly, then send them a non-renewal notice in advance.
Tenant retention is crucial in the rental and property management business. With the help of Property management software for residents, tenant retention becomes a simpler and efficient task to ensure increased revenue.