As a landlord, retaining good tenants for your rental property is essential for maintaining a steady income stream, keeping your buildings filled, and ensuring the longevity of your investment. Good tenants not only pay their rent on time but also take care of your property, communicate effectively, and abide by the terms of the lease agreement.
Did you know that the average cost of rental turnover is $1,750? Plus, empty properties don’t bring in the money.
If you’re relatively new to property management or need some tips for tenant retention, here are some strategies that can help you retain good tenants and create a positive rental experience for both parties.
What Do Good Tenants Value?
First things first. Do you know what your good tenants want? Appealing to good tenants represents a pivotal aspect of fostering long-term relationships. Such tenants have a keen eye for properties for well-maintained, secure, and desirable properties.
They place a high premium on the attentiveness and reliability of their landlords. Being able to reach out and receive timely responses to any concerns or requests they may have helps your tenants feel valued and that they matter to you.
Good tenants appreciate transparency in their dealings with landlords, particularly regarding lease terms and any potential rent adjustments. They look for fairness in rental rates and a clear, straightforward process for any necessary communications or transactions. They also value respect and trustworthiness.
Features that contribute to their comfort, such as efficient heating and cooling systems, reliable internet access, and modern appliances, are highly valued. Good tenants also want any issues with these items fixed promptly.
There are several top amenities tenants look for in a property:
- Location
- Safety/Security
- Schools
- Parking
- Condition of the unit they’re about to move into
- Modern appliances
- Upgrades
- Age of the property
- Floor plan
- Storage (closets, shelving, cabinets)
- Outdoor space
- Cooperative and responsive landlord
Send Surveys to Tenants About to Re-Sign Another Lease
The best way to find out what your tenants value is to ask. Send your tenants a survey 90 days before they re-sign a lease. Tell them it takes just a few minutes to fill out. There are plenty of free online survey tools you can use for this purpose.
If you want your tenants to pay attention to the survey, offer an incentive for filling it out. For example, offer something like “$50 off the first month’s rent on your new lease” or a $25 gift card if the tenant responds in a timely manner. Of course, this incentive becomes less cost-effective the more tenants you have, but strategically placed surveys with incentives for filling one out can be invaluable.
Communicate With All Tenants
Maintain open lines of communication to keep a positive rapport with tenants. Be accessible and responsive when they reach out with questions or concerns. It’s about more than just responding quickly. It’s about engaging in meaningful dialogue that addresses their needs and shows that you value their residency. For instance, if a tenant reports a maintenance issue, updating them on the repair process and timeline can significantly ease their concerns and foster trust.
Establish a preferred communication method, whether email, phone calls, text messages, or a property management app. Make sure you’re consistently available through these channels. This approach streamlines interactions and makes tenants feel heard and respected.
Check-In Regularly
Implementing a regular check-in schedule can preemptively address potential issues before they escalate. These check-ins can be informal, such as a quick call or email asking if they have any concerns or suggestions for improving their living experience. This proactive action solves problems early on and reinforces to tenants that their comfort and satisfaction are top priorities.
Follow Up Efficiently
Follow up on your communication by promptly addressing and solving tenant issues. If a stray dog on the loose causes a safety issue, make sure someone takes care of the problem. Loud people at 3 a.m.? A quiet place to live can make your property more inviting. Too much trash around a trash dumpster might mean additional security cameras to prevent non-tenants from dumping their trash, scheduling an extra trash pickup day, or establishing more on-site dumpsters.
You absolutely need to follow up and solve issues that concern tenants. You want them to have a safe place to live!
Prompt Maintenance and Repairs
Quickly taking care of maintenance and repairs, either through an in-house maintenance person or hiring a specialized contractor (electrical, HVAC, plumbing), is vital for tenant satisfaction and retaining good tenants. Your property’s perceived value increases when tenants see their maintenance issues solved quickly.
It’s important to establish a reliable system for tenants to report maintenance concerns. This system can include online reporting tools, direct phone lines, text messages, or dedicated email addresses. It should be easily accessible and user-friendly, encouraging tenants to communicate their needs without hesitation.
Provide a clear timeline for repair and stick to it once a maintenance request is received. This process shows respect for the tenant’s living space and comfort as well as builds trust.
Beyond having a maintenance person or contractors on call, regular maintenance checks can also help identify and resolve potential problems before they become significant, reducing the frequency of emergency repairs and the inconvenience to tenants.
Send Proactive Lease Renewal Reminders
For a long-term lease, consider reaching out 90 days before the lease expires to gauge your tenant’s appetite for signing up for another lease. This does two things. First, you can plan for the future when deciding how to market a potential opening. Second, you’ll allow tenants to choose whether to renew their lease with your property with enough lead time.
Along with the lease renewal reminder, send your tenant their options for the new lease (one year, six months, three months, month-to-month). This is also the time to mention an incentive like $50 off the first month of the new lease. Think about sending the survey at this time as well, giving you some feedback on improving your tenant experience. The responses you see in the survey also provide you with a potential strategy for keeping good tenants.
Offer Incentives for Lease Renewal
Motivate your tenants to commit to another lease term with compelling incentives. These gestures of appreciation for their continued tenancy signal that you value their presence and contribute to a positive landlord-tenant relationship. Consider a rent discount for the first month of the new lease, either a percentage off or a specific dollar amount less, making the renewal financially advantageous for them. Alternatively, a unique and thoughtful incentive could be offering upgrades to the rental unit, such as installing a new dishwasher or air conditioning unit, which improves their living experience and demonstrates your investment in the property’s quality. Remember, upgrading a rental unit can provide some tax incentives (but check with your accountant first).
Another option is a personalized incentive, like a gift card to a local restaurant or home goods store, which adds a personal touch to your appreciation. This rewards the tenant and supports local businesses, fostering a sense of community. For those particularly meticulous about their living space, a complimentary professional cleaning service can be an attractive offer, ensuring their home is refreshed and inviting every year.
A loyalty or rewards system for timely lease renewals can also be beneficial. This could include accruing points towards future rent discounts or eligibility for more significant improvements after a certain number of consecutive renewals. Such a system encourages long-term tenancy and deepens the tenant’s investment in maintaining a good relationship with you as their landlord. You can expand this system to include points for survey responses and regularly checking in with property managers.
Upgrade and Improve the Unit
Is the dishwasher 20 years old? Is the HVAC unit raising utility bills? Does the water heater make loud noises when the water heats up? Is the bathroom floor in need of replacing?
Minor improvements and major renovations can make a big difference to a tenant’s living situation. Fresh paint, updated lighting fixtures, or new cabinet hardware are cost-effective ways to refresh the space and keep it looking modern and well-maintained.
Implementing smart home technology, such as programmable thermostats, smart locks, and security cameras, can also be a significant draw for good, long-term tenants. These technologies not only improve convenience and safety but also position your property as cutting-edge and attentive to modern living standards.
Sponsor Community Events on the Property
Cultivating a community within your rental property can significantly enhance tenant satisfaction and loyalty. Initiatives that bring people together and foster interactions can transform a rental space from a mere living area to a vibrant community. Consider setting up communal spaces where tenants can gather, such as a shared garden, barbecue area, or even a small playground for those with children. These shared amenities encourage informal meetings and socialization, building a sense of belonging and mutual respect among residents.
Organizing regular events is another effective way to promote community spirit. Seasonal parties, educational workshops, or group outings to local attractions can provide tenants with unique experiences and opportunities to connect with their neighbors. Such activities not only make living in your property more enjoyable but also help forge stronger connections between tenants, making it easier for them to maintain these connections for longer periods of time.
Communication platforms like digital newsletters, community boards, or social media groups can also play a crucial role in building a community environment. They serve as a hub for sharing news, organizing events, and facilitating discussions among tenants. This ongoing dialogue strengthens the community fabric and ensures tenants feel informed, involved, and valued.
Provide Flexible Lease Options
Adapting to the diverse needs of tenants by offering flexible lease terms is a game-changer in retaining quality renters. Flexibility in lease agreements, such as the availability of month-to-month leases or shorter-term commitments, can cater to tenants who may be in transitional phases of their lives, such as students, professionals on temporary job assignments, expanding families, or those in the process of purchasing a home.
This adaptability demonstrates an understanding and accommodation of your good tenants’ changing circumstances, making your rental property more attractive to a wider array of renters. Additionally, it provides an opportunity for tenants who are satisfied with their rental experience but hesitant about long-term commitments to stay longer than they initially planned without an untimely move before they’re ready.
Property Management in Missouri
Bell Management is the premier property management company in Joplin, Missouri. We serve Southwest Missouri, Southeast Kansas, and Oklahoma. If you are interested in Bell Management for your properties, contact us online or call 417-624-4144. We make you feel right at home.
