Making sure that tenants are happy should be a top priority for all property managers. The more satisfied they are with their living situation, the more likely they will stay with you long term, and that you won’t have to deal with the complications of tenant turnover.
A few of the potentially costly fixes for turnover complications:
- Inspecting the property
- Repairs, paint and other maintenance
- Replacing necessary appliances
- Paying for advertisements
- Taking time showing the rental
These costs are in addition to any lost rental income incurred prior to finding a new tenant.
The easiest solution by far is to just do whatever you can to keep your current tenants in place. Although there are some costs associated with this as well, they are generally far less, especially in the long run.
The primary reasons for tenant turnover have to do with poor property management, and include problems such as repairs and poor maintenance. The irony being that most of these problems will need to be fixed before a new tenant can move in anyways, so solving the issue for a current tenant makes much more sense.
The bottom line is this: the greater your tenant retention, the greater your income
Here are 5 effective ways to decrease your tenant turnover:
- Do a thorough background check – Avoid tenants with past instances of broken leases and/or evictions. Also steer clear of tenants with significant legal issues, as he or she may become incarcerated or cause other tenants to leave.
- Make the property feel like a home – If your tenants live in a rental community, incorporate attractive features into the community. Add a walking trail, small park, playground, and/or a gazebo. Build a clubhouse with a large kitchen, Internet lounge, and a game room, or even have a pool for residents to use.
- Keep up with repairs – Do not let any part of the property fall into disrepair. Doing so will give the perception that the community may be of poor quality and dangerous. Maintain the property to the level that tenants reasonably expect.
- Maintain relationships with tenants – Communicate with tenants to see what you are doing well and identify areas that need improvement. For example, have a satisfaction survey left with each tenant every time maintenance is performed on his or her rental unit.
- Respond to tenant requests swiftly – Tenants expect timely responses to their requests. Whether the tenant has a question or submits a maintenance request, respond with an answer or a status within a few hours. Make all repairs as soon as possible. This will help both you and the tenant avoid unnecessary hassles.
Are you a Resident Manager? How do you help your residents like where they live?
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