How To Maximize Tenant Retention

How To Maximize Tenant Retention

Single Property Management - Wolfnest Property Management Logo - Salt Lake City Property Management

Getting new clients isn’t very easy and each month your property stays vacant is a month you’ve lost income. Did you know improving your tenant retention rates by approximately 5% increases your profits by between 25%-95%? Crazy, right?

But how does a landlord or property owner make their tenants more inclined to stay in their properties? Here are a few ideas that could help you maximize tenant retention.

 

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Begin at Tenant Screening

Tenant screening is the first step to improving your customer retention rate. Finding great tenants means that you’ll avoid many of the issues that sour the relationship between landlords and tenants. 

 

While screening your tenants, make sure to find out a bit of the following:

  • The nature of their employment 
  • How long they plan to stay
  • If they have a family or live alone
  • Their criminal records
  • Credit score

 

These are important factors that will help you know whether or not they are going to become long-term tenants. For better tenant retention rates, go for tenants who have a great history with their past landlords, and are planning to stay for a longer period.

 

Develop a Good Relationship With the Tenants

From the get-go, it’s very easy for tenants to dislike their landlord. But you can develop a great relationship with your tenants to improve the quality of their stay. Tenants who have a great relationship with their landlords will want to stay for a longer period.

 

One of the easiest ways to develop a great relationship with your tenants is by being understanding. Try talking with them as though they are on the same level as you and even when they are late on their rent payment approach them with an understanding tone. 

 

Conduct Research on Why Tenants Are Leaving

This is one of the best ways to learn why tenants are not staying. Finding out why they are leaving gives you very valuable information on how you can improve your tenant retention rates.

 

You can survey the existing tenants by asking them what would make them want to leave. Additionally, you can have exit interviews with tenants who are already vacating to find out their reasons. If it’s something you can fix, try reasoning with them as this might make them stay. 

Continue To Rent The Property Below Market Value

Many owners and property management companies feel that a rent increase should happen every year in order to maximize cash flow. If you are willing to make a small concession to your excellent tenant, it will make them feel valued and will not give them a reason to find a new place to live.

 

Become More Personal

At the end of the day, your tenants are just human, becoming personal lets them see a different version of you. This helps them realize that you are not that different from them. Letting them learn more about your personal life helps deepen the relationship you have with your tenants. 

 

You can become more personal with your tenants by:

  • Sending out holiday and gift cards 
  • Holding regular personal conversations with them
  • Remembering important details about your tenants like their birthdays
  • Letting them know that they can reach out to you at anytime
  • Hosting annual parties where you invite all the tenants 

 

These steps are very important as they’ll help you become closer to your tenants. They will develop a sense of loyalty towards you, making it very hard for them to leave. 

 

Provide Great Incentives

Providing great incentives will improve your tenant retention rates and also attract new tenants. For instance, handle maintenance issues effectively and regularly. You can also go the extra mile to improving your tenants’ living conditions such as installing better insulation in the houses. 

You can also give your tenants gifts just before it’s time for them to renew their lease. Go for something personal that lets them know you are grateful for all the time they have stayed. This will make them feel appreciated and improve the chance of them staying. 

 

Maximize Tenant Retention With Property Management Services

Providing great incentives will improve your tenant retention rates and also attract new tenants. For instance, handle maintenance issues effectively and regularly. You can also go the extra mile to improving your tenants’ living conditions such as installing better insulation in the houses. 

 

You can also give your tenants gifts just before it’s time for them to renew their lease. Go for something personal that lets them know you are grateful for all the time they have stayed. This will make them feel appreciated and improve the chance of them staying. 

 

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Landlord Vs Property Manager- Which one Should You Rent From

Landlord Vs Property Manager- Which one Should You Rent From

Single Property Management - Wolfnest Property Management Logo - Salt Lake City Property Management

Life is full of choices. Chocolate or vanilla? Coffee or tea? Landlord or property manager? Deciding whether to rent from a landlord vs a property manager in Salt Lake City can be a difficult decision because there are positives and negatives to each method. Here are some of the things you should consider:

First, What is Property Management?

Typically, either a landlord or a property manager is responsible for managing a rental property. As a tenant, you will deal with one of these before and after you move into a new property. 

 

Here are some of the responsibilities associated with property management:

  • Tenant screening. This is the process that determines whether the prospective tenant will fulfill the terms of the lease or rental agreement, which include paying the rent on time and taking care of the property. Tenant screening often involves credit referencing and background checks.
  • Collecting rent.
  • Handling maintenance and repairs.
  • Responding to complaints if something goes wrong inside the property.
  • Pursuing evictions if the tenant has broken the terms of the lease.

 

There are other tasks associated with property management, but these are the main ones that affect tenants.

Whats The Difference Between A Landlord And A Property Management Company?

Although landlords and property managers essentially do the same thing, there are differences in how they do it. In the most simple terms, a landlord owns the property; a property manager manages the property. 

 

A property manager serves as a “middle man,” acting as an intermediary between the tenant and landlord. When you live in a home managed by a property manager, you might never meet your landlord during the entire tenancy. Everything you do as a tenant — paying rent, collecting your security deposit, resolving issues, etc. — goes through the property manager. 

 

All of the above provides you with extra protection. Although property managers work on behalf of landlords, they need to follow strict tenant protection laws that safeguard you as a tenant. As there’s an element of distance between you and the landlord, you are less likely to disagree about a property-related issue. 

 

Property managers provide landlords in Salt Lake City with lots of benefits too. These professional companies take care of the hard work associated with the day-to-day management of a property, which frees up the landlord’s time. Research suggests that 51 percent of landlords use a property manager.

 

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Landlord vs. Property Management — Different Properties in Salt Lake City

Both landlords and property managers are responsible for all different kinds of properties in Salt Lake City, but landlords tend to manage more single-family homes and small multi-family homes. Property managers, on the other hand, often manage a large portfolio of properties in different SLC neighborhoods. These might include large multi-family homes and even commercial properties. Renting a house through a property management company, therefore, usually means that the company has experience with managing all different types of properties.

Paying Your Rent

Some landlords only accept check payments or bank transfers, which can make it more difficult to remember to pay your rent. You might have to travel to your bank once a month and deposit your rent payment into your landlord’s account. 

Property managers usually accept various payment methods, including online rent payments. This makes it easier for you to budget and control your finances every month. You just visit the property manager’s website and pay your rent. It’s as simple as that.

Repairs

If something goes wrong inside your home, you will need to submit a maintenance request with the landlord or property manager. Some landlords are difficult to track down; others can take days (or even weeks) to fix the problem. 

Property managers, however, often utilize the latest technology, so you can submit maintenance requests through an online portal. This speeds up the process significantly. Property managers don’t own the property, so they often manage maintenance issues more professionally.

Communication

As mentioned above, some landlords are notorious for poor communication, and you might have to wait a few days for a landlord to even respond to your email or phone call. Good property managers, however, will maintain consistent communication throughout your tenancy, so you can solve problems in a speedy timeframe. 

Often, it can be difficult to bring up issues with a landlord. If something is wrong with the property, the landlord might take your complaint personally. There have been many cases where complaints about small issues have escalated into big confrontations. Renting a home managed by a property manager can eliminate this problem. 

Property managers are also more likely to know about landlord-tenant legislation and your rights and responsibilities as a tenant. With this legal expertise, a property manager can quickly solve any problems associated with rent and lease agreements.

Cost

Many people think that it’s more expensive to rent a property managed by a property manager, but this isn’t the case. As a tenant, it’s not your responsibility to pay the property management company for its services. (The landlord pays the property management company.)

There’s also a misconception that homes managed by property management companies are more expensive because the landlord adds the property manager’s fees onto the total cost of the rent. Again, this isn’t the case. Many landlords in Salt Lake City don’t increase their rents to factor in the cost of professional property management.

 

Landlord or Property Manager — Which Should You Choose?

When it comes to choosing between a landlord vs a property manager, it all really depends on your personal preferences. Most landlords in Salt Lake City provide a good service to tenants, but leasing a property managed by a property management company provides you with an extra level of protection. It’s more likely you will solve maintenance issues quickly, experience excellent communication, and benefit from a more flexible rent payment system. If you’re a tenant looking for a new home in the Salt Lake City area, consider renting from a reliable, experienced property manager like Wolfnest!

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