8 Ways to Retain Quality Tenants
By Alessia Fulache, Guest Blogger for Power Properties
Running a property management company can sometimes feel like you’re putting out fires all day. There are certain issues that you need to constantly deal with no matter the season, such as losing agents from time to time and the high level of vacancies among the properties you are managing. You can deal with the former by recruiting whole-year round using modern solutions like the BrokerKit recruitment software. The latter, on the other hand, is best approached by fostering a great relationship with high-quality tenants.
If you’re able to attract unproblematic tenants to your property and keep them there, then you won’t have to find new renters frequently. At the same time, their presence can even attract other responsible tenants to your nearby properties. Here’s how you can convince quality tenants to stay.
Define What an Ideal Tenant Is
Before you can convince a quality tenant to stay in your property, you need to find them first. You must have a set of standards for determining whether or not a prospective tenant will be a good fit for the property you are managing. Being clear with what you want will make it much easier for you to select the renters who will care for your property and live up to their end of the lease.
Set Competitive Rental Rates
The cost of a rental is always going to be the biggest factor for your prospective tenants. In order to rent your property quickly and to high-quality tenants, make sure your rental rates are fair with the current market and in line with properties that are similar to yours. This will help you attract more rental applicants and give you a better chance of finding ones that will treat your property with respect. Property management companies will help you set these rates during the initial rental evaluation consultation and will provide you with updated rates at renewal time. Once you’ve found the ideal tenant that pays rent on time, takes care of your property and is low-maintenance, try to hold on to them. At renewal time, if rental rates are increasing, weigh the pros and cons of raising their rent. Raising their rent anything over $100, could cause them to move out, so consider the current rental rates and vacancy rates in your area. If your property were to go vacant for a month, would the cost of the increase make up for it?
Small Gestures Can Go a Long Way
Making small gestures can have a big impact on tenant satisfaction and retention. Landlords who show that they care about their tenants are more likely to keep them renting for longer periods. Examples of small gestures that can make a big difference include giving them a welcome bag that includes basic small household items, such as toilet paper, cleaning supplies, etc. You can also give them a gift card during the holidays or provide a new lawn mower to maintain the yard. By making these small gestures, landlords can demonstrate their commitment to their tenants and foster positive, long-lasting relationships with them.
Be Flexible
Accommodate reasonable requests from your tenants, such as allowing them to keep a pet or paint their walls, to show that you are willing to work with them and value their input.
Stay in Touch with the Tenants
Maintaining an open line of communication with your tenants can help you foster a good relationship with them. This will give them the impression that the management is eager to hear what their concerns are, address the issues that are affecting their stay, and answer their questions. At the same time, you can quickly give your tenants a heads-up if they should anticipate issues in the neighborhood, such as scheduled power or water interruptions or road maintenance.
Responds to Complaints Quickly
Of course, it’s not enough to simply stay in contact with your tenants. You also have to be quick to address their issues with the property to convince them to stay or renew their lease. Make sure you have plumbers, electricians, and other service providers who can immediately respond to your tenants’ concerns. At the very least, give your them a realistic timeline of when you can inspect the damage and when a professional can come by to fix the issue. If you travel frequently or have a busy schedule, consider hiring a property management company with a 24/7 emergency line, to ensure your tenants and property are taken care of.
Maintain the Units to High Standards
You can’t expect quality tenants if you’re not offering quality properties. To attract people who can live up to your standards, you must have units that can serve as excellent residential, commercial, or industrial spaces. Make it a point to inspect your properties at least once a year and inform the tenants well ahead of your visit. This will help you assess the condition of the rental and identify any preventative repairs or maintenance, that can sustain the quality of your rental and save you larger repair costs down the line.
Offer Excellent Shared Amenities
Another effective way of retaining quality tenants is by offering them practical shared amenities. If you’re managing an apartment complex, for example, you can offer your tenants the use of laundry and dry cleaning facilities, parking spaces, a pet walking area, a gym, or even a playground. The presence of these amenities will endear the property to your tenants.
Overseeing rental properties has its ups and downs, but you can enjoy more of the positives if many of your properties are occupied by high-quality tenants. If you’re looking for responsible renters or you’re keen on keeping the ones that you already have, try these strategies to develop a healthy business relationship with them.