Tenant turnover is one of the biggest expenses and hassles a landlord will deal with. Finding quality tenants takes time & money. Once you have quality tenants in your unit, it is in your best interest to keep them there for any many years as possible. Here are 4 ways to reduce tenant turnover!
- Take Care of Your Property– If you take good care of your rental property, your tenants will be happier! Happy tenants tend to stay put. Taking good care of your property is more than just fixing repairs and addressing issues. Go a step further and be proactive in how you take care of your property. Extras such as refinishing floors, painting, and professional cleaning may cost money in the short term, but they keep your property in good working condition and increase the likelihood that your tenants will stay!
- Build Relationships– There are plenty of landlords out there who won’t take the time to get to know tenants. They may not see the value in understanding their tenants and view it as a waste of their time. But like all businesses, building relationships with your customers increases the chance they will remain loyal to you. Simple gestures like checking in after the first month of the lease, sending holiday cards, or thanking tenants for addressing small issues can go a long way towards their satisfaction.
- Don’t Raise the Rent– Adjusting your rent to the market rate is an easy way to increase cash flow and profits, but sometimes the hassle of new tenants is not worth it. As a general rule of thumb, tenant turnover can cost several thousand dollars in repairs, marketing, cleaning, and broker fees. If you have good tenants in place who pay their rent on time, consider the benefits of keeping their rent stable, which will serve as an incentive for them to stay.
- Anticipate your Tenants Needs & React– As you build good relationships with your tenants, you gain insight into what is going on in their lives and reasons why they might choose to leave. Perhaps a tenant is getting married or starting a family, or starting a new job. I have encountered situations where a single tenant from a multiple bedroom apartment plans to leave. Before the other tenants gave me any indication they planned to look for a different apartment, I made it clear to them I was willing to work with them on a plan to find a new tenant or allow them to pay a slightly reduced rent for a period of time while they searched for a new roommate. This strategy worked, and these tenants stayed for two more years!
What strategies do you use to reduce tenant turnover?