A turnover in your rental property is inevitable. Tenants come and go, but every time they leave, you have to invest money time finding a newly qualified renter. Landlords know that maximizing renter retention is a key factor in increasing their profitability.
If you are constantly having to replace your tenants, it is worth taking a step back and taking a good look at the big picture. Here are four strategies you can implement to improve your retention rates:
1. Keep Your Current Tenants Happy
It doesn’t matter whether you are renting out a studio or a mansion, you need to be considerate to your tenants and keep the property in good shape. Landlords who are proactive and diligent retain their tenants for much longer.
Respond to repairs in a timely, professional manner.
After the repairs have been completed call your tenants to ensure they are satisfied.
Check in with the tenants.
You should communicate with your tenants regularly, especially if you use a property management service to ensure they are doing their job. Giving your renters a call or sending an e-mail once in a while makes them feel like their well-being is important, and that counts greatly towards a lease renewal. If your residents decide to leave, ask them why. By agreeing to solve the issues they mention, you might be able to persuade them to stay.
Work harder than you have to
You want to go beyond maintenance to show a good tenant that you appreciate them. You can surprise them with a small gift on their birthday or a rebate on holidays. Also, provide them with an incentive to renew the lease, like a discounted rent for the first month of renewal. You will still be cutting costs because you won’t lose money on turning over the property if they stay.
2. Increase the Rent Carefully
If keeping a good tenant is your priority, look into raising the rent only once every two years. You want to create a win-win situation by making as much money as you can on your property while you still giving your tenants a fair price. Do a thorough research before you propose an increase and discuss options with you renters lest you lose them by charging something they can’t afford. Analyze how quickly will you be able to find the new residents and how much that will cost you, along with whether the price increase can actually cover these costs.
3. Keep Your Property Updated
Is your property a renter’s dream? Certain amenities can make a great difference in whether tenants choose to move or stay. Parking, high-speed internet, smart devices, a pet-friendly policy and a rent that includes all of the utilities and trash pickup can make your property more appealing. Find out what other landlords are offering and follow the trend.
4. Choose Your New Tenants Wisely
Investing time into finding a good fit for your property can make the difference between a short turnaround and a long turnaround. On the practical side, your selection process should involve conducting a comprehensive background check and rental history with references. But you also want to find a trustworthy tenant with a personality that suits you so you can effectively communicate. Indicate specific requirements in your listing and make sure to meet and interview your candidates. Using a rental agent or tenant matching services can also reach a larger pool of qualified tenants. You might not like dealing with a third-party, but if you want a steady rental ride, it is worth considering.