Tips To Ensure Retention Of Your Current Tenants
Tired of good tenants moving out and looking for new tenants? Read our “Tips To Ensure Retention Of Your Current Tenants” to learn how to retain them.
.
KEY TAKEAWAYS
- Learn how to conduct complete tenant applicant screenings.
- Keep good tenants by maintaining reasonable rent prices.
- Maintain open communications with your tenants.
- Make paying monthly rents easy.
- Do fast repairs on your rentals.
- Learn how to create a Maintenance Request Tracking System.
- Protect your tenants’ privacy.
- Offer lease renewal incentives.
- Create the best landlord-tenant relationships.
- If being a landlord is too stressful hire a reputable property management company.
How To Ensure Retention Of Your Current Tenants
As a landlord, you know how much time it takes to clean out a vacated home or unit. Also, you know how more time is spent advertising, reading applications, interviewing applicants, and doing background & credit checks.
Before signing up the first applicant for a vacancy read our recent blog post explaining:
“10 Things Landlords Should Know About Their Tenants “.
Then, you will know how to screen tenants that fit your requirements.
How about keeping long-term good tenants? Read the following tips and suggestions.
1. Conduct Thorough Tenant Screenings
It all begins with finding the best tenants. Landlord success depends on finding and retaining good tenants. The best way is to conduct a thorough tenant screening process before signing them to a lease.
A good tenant screening includes:
- A background check;
- Credit check;
- Proof of employment and income; and
- Reference contacts (including past landlords).
Follow the above 4 steps to get essential information about the tenant’s prior bad behavior, employment, income, debts, and references from past landlords.
View our past blog posts to learn about:
- “How to Do Tenant Background Checks “;
- “How To Screen Tenants “; and
- “How to Thoroughly Evaluate a Prospective Tenant’s Credit “.
2. Maintain Reasonable Rent Prices
Don’t make it easy for competitors to poach your good tenants. When it gets close to renewing the lease expect your tenants to search what similar rentals are asking. If your rent price is too high don’t be surprised if your tenants bolt for similar houses or units at a lower price.
The best way to keep worthy tenants is to offer a good deal. Tenants don’t want to move from a rental they like due to the time and expense of finding another one. Yet, saving money is a big motivation to move. Thus, not raising the rent as a renewal incentive often works.
However, never forget about your Return On Investment (ROI). Calculate your ROI including property tax, maintenance, and expenses to make sure you still make a profit you like.
If you need to raise the rent to meet inflation and rising expenses, keep it to a small monthly amount like $25 to $50 so it’s manageable for your tenant.
3. Open Communications Retain Tenants
A stable landlord-tenant relationship depends on good communication. Your tenants must feel they can reach out and always receive a quick reply. They need to feel they can have a conversation with you about their concerns or issues.
Open communication requires a system of communicating with your tenants. Offer several ways for tenants to contact you like by phone during set hours, email, or text messages. Make sure you respond quickly.
When a tenant has a question about maintenance, repairs, or emergencies they must feel they can contact you and get a reply quickly. Let them know which method is the fastest.
4. Easy Rent Payments
Tenants are just as busy as landlords. You need to set up a convenient rent payment system. 57% of renters claim that online rent payments are essential. Offer convenient options like online credit/debit card payments, or automatic monthly bank transfers to your account.
Several online payment systems make rental payments fast and convenient like:
View more options in our blog about “How To Collect Rent Payments (Online and Offline Methods) “.
5. Fast Repairs
Don’t frustrate your tenants. When tenants contact you for repairs, they need quick repairs. Making them wait days or a week only frustrates them.
Keep a contacts list of handy specialized repair persons like an electrician, plumber, carpenter, or HVAC expert. Make sure they are reliable and can respond quickly. Don’t forget to update your tenant when the repair person will arrive.
If things keep breaking down without prompt repairs expect your frustrated tenants to move when the lease expires.
Learn more about necessary landlord repairs from our blog:
6. Establish a Maintenance Request Tracking System
According to Avail, a DIY Landlord platform owned by realtor.com®, their survey of tenants revealed that “12% of tenants moved because the property wasn’t well-maintained”.
Thus, setting up a maintenance tracking tool can help you to track all maintenance issues for each rental. Recurring problems mean better repairs or replacement. It also shows how quickly you respond to emergencies. Over time, this report verifies your great track record to impress applicants.
Also, tenants can submit details and photos from their accounts at any time. Your response and updates keep them informed on repair progress. Final reports show how quickly repairs occurred. Plus, a log shows receipts and repair notes for your records.
7. Prioritize Privacy
Always respect your tenants’ privacy. Never show up unannounced or without a prior appointment. Give your tenants at least 24 hours notice before entering the property.
Never snoop around during your visit looking for lease violations or trouble. Always ask before looking for maintenance or repair needs throughout the property.
Tenants feeling respected will respect you.
8. Offer Incentives for Lease Renewals
Sweeten the deal to get the deal done.
Good tenants that you want to retain deserve incentives. This could be done by offering a to keep the same monthly price, or making an upgrade to the property.
Ask your tenants if they want to renew 60 days before the expiration date. It’s better to know sooner than later if they want to move or stay. If they intend to move this gives you more time to find a new tenant.
If you want to retain them, you can always change their mind by offering incentives like waiving certain fees (for internet, cable TV, or parking). Make sure to include the incentives in your lease renewal agreement so they are agreed to by both parties.
Of course, any incentives you offer must be weighed against the cost of finding new tenants and possible vacancies.
9. Cultivate the Best Landlord-Tenant Relationship
Most of our suggestions here show you how to cultivate better relations with your tenants. Too many times poor landlord-tenant relations lead to problems. Tenants don’t pay promptly, complain too much, or don’t communicate at all.
Cultivate mutual respect. Without getting chummy, get to know them. Start a conversation with them about their work, hobbies, and interests. This will give you ideas for suitable birthday and holiday gifts.
Tenants comfortable with their landlords tend to stay longer.
Learn other tips from our blog like:
- “How To Keep Your California Tenants Happy”;
- “Top Rental Features Attract Good Tenants“; and
- “How To Become A Landlord In California”.
10. Hire a Reputable Property Management Company
Hiring an experienced reputable property management company saves you time and money. Forget about late-night or weekend tenant emergencies. Don’t worry about maintenance and repairs. If a tenant moves out let the property management company find new ones.
Bookkeeping is another benefit of working with a property management company. Your tax returns become simpler with organized reports of all tax-deductible expenses and net profits.
View our blog posts about:
- “How To Choose A Property Management Company”;
- “Advantages of Using Property Management Company“; and
- “Questions Before Hiring a Property Management Company“.
Tips To Ensure Retention Of Your Current Tenants – Conclusion
Now that you learned our tips to ensure the retention of your current tenants, put them into practice. They will make your tenants happy which is the biggest reason why tenants renew their leases.
Need Property Management Company Services in San Diego County?
WeLease provides all the property management services you will need in the greater San Diego region. From single-family houses, and multi-family buildings, to large apartment complexes, we service all.
Contact us before you buy your first rental property or if you feel overwhelmed with the ones you own. We’ll take the stress and time off your hands so you can enjoy life while we collect the rent.
Steven Rich, MBA – Guest Blogger
HAVE ANY QUESTIONS?
Let us know, we’d love to help:
Call: (619) 787 – 4066
or Click: www.WeLeaseUsa.com/contact
WeLease Property Management Company
