November 2nd, 2021
A peek into October at PropertyMe (2021)
We all know a good tenant when we come across one. You know the type. They pay the rent on time. They are proactive and call you when a situation arises before it becomes a bigger problem. They respect the property, their neighbours, and most of all, you. They are the type of people who treat the property as if it were their own. Good tenants like these are hard to find, and once you do, you never want them to move out.
No one wants to lose a tenant. The screening and vetting process associated with filling vacancies is time-consuming and has its share of headaches. But, when you have a dream tenant, losing them can be particularly devastating.
Retaining a good tenant does not just benefit the Property Manager but the property owner as well. Reducing the turnover of tenants helps reduce expenses and increases profits, which is the goal of every property owner.
Here are some cost-saving advantages to reducing turnover by hanging on to your best tenants,
In addition to the cost and time saved, retaining good tenants helps avoid the uncertainty of bringing in a new one, as there is always a chance that the next tenant will not be as good as the previous one. That’s why it is ideal to put measures in place to ensure tenant retention.
Here are four proven ways to help retain the perfect tenants.
A satisfied tenant is a tenant who will be willing to extend their lease. If you remain proactive about property maintenance and perform inspections regularly, a good tenant will be more likely to stick around. It should go without saying that tenants want their maintenance requests addressed in a timely fashion. If a good tenant respects the property, they will expect you to respect it as well.
When you perform regular inspections, stay on top of maintenance requests and address tenant issues quickly, it will save time and money in the long run and keep common maintenance issues from becoming a bigger problem down the road.
It’s always a good idea to let a great tenant know in advance that you are interested in renewing their lease. By reaching out to them at least 90 days before their lease expires, you encourage them to start thinking about their plans. It also lets them know that you appreciate them as a tenant. If the tenant does decide to move, this gives you extra time to plan, cutting down on the costs associated with turnover and vacancy.
If you want to maintain the relationship, consider offering them additional incentives to stay for longer. For example, you can offer them a discounted rental rate, should they decide to renew.
If they are hesitant about renewing the lease or are still on the fence, ask them what it would take for them to stay. Communication is one key to maintaining healthy and positive relationships with tenants.
One of the best ways to retain a great tenant is to extend the length of their lease, at a lower rate, as part of the renewal. If the current lease renews every six months, offer a one-year renewal. For 12-month renewals, consider a two-year renewal and lock in the rate as an added incentive.
Be sure to crunch the numbers before making any commitments. Only use this method if it is financially feasible. However, while it may seem like the property’s income is taking a hit by offering the rental at a reduced rate, it is often more valuable to retain a reliable tenant in the long run.
A Property Manager should never underestimate the power of kindness, especially when it comes to your tenants. A renter is more likely to stay if you are friendly and cooperative. That means maintaining an open line of communication, being timely with your responses, and always treating tenants with dignity and respect.
For example, performing maintenance tasks or repairs in the tenant’s space, be sure to work around the tenant’s schedule whenever possible. By being cooperative and flexible, you are more likely to get cooperation and flexibility in return from your tenant.
Being able to retain great tenants is a sign of good property management skills. Best of all, retaining great tenants and lowering turnover rates for your client makes you look like a superhero!
Property management can be challenging, but with the right tools in your toolbox, you can shine.
Thanks for reading this blog about the 4 ways to retain your best tenants! You might also be interested in:
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