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.
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.
