All property managers aim to achieve strong tenant retention rates. One of the most expensive parts of a rental business is tenant turnover. Hence, finding ways to improve tenant retention is among the key responsibilities of a property manager. As Kanat Sultanbekov says, while finding a good tenant does take work, keeping them around requires just as much effort, if not more.
Kanat Sultanbekov underlines valuable tenant retention strategies for property managers
Tenant retention implies to the ability of property managers to keep their current tenants renewing their leases instead of having them move out and needing to find new renters. When it comes to property management, retaining tenants is typically more cost-effective than constantly trying to find new ones. Good tenant retention rates ensure a steady cash flow of rental income while also lowering costs linked with vacancies, marketing, and new tenant screenings.
Here are a few pointers property managers may follow for better tenant retention:
- Pre-qualify and screen all tenants: Unless property managers have qualified and quality tenants in the first place, rates will be the least of their worries. Tenant screening has a major impact on the potential turnover rate and is a vital aspect of the rental process. This screening process should include income, credit, and criminal background verifications, along with former landlord references.
- Make maintenance a priority: Property managers need to prioritize maintenance and repair requests to ensure satisfied tenants who are happy to renew their lease. Being proactive about carrying out annual and routine service for major systems in the property can help steer clear of costly emergency repairs. In case an emergency issue does come up, the concern of the tenant must be addressed in a prompt manner and they should be kept informed throughout the repair process.
- Provide lease renewal incentives: The end of the current lease of a tenant is a critical time for property owners. This is the time when a tenant weighs whether to stay at their current rental or move to a different house. While there can be many instances where external factors like job changes do impact the decision of the tenants, it is still important for property managers to put their best foot forward. They can, for instance, partner with local cafes or gyms to provide special deals to the tenants. Providing monetary incentives for renewing the lease, like a discount on the renewal month’s rent, would also be a good idea.
- Keep rental rate increases consistent and fair: Profits are obviously vital for any rental property business. However, being too aggressive with rental rates can drive away tenants instead of encouraging them to stay. Even though tenants expect periodic increases, it is vital to see to it that the property does not outpace similar rentals.
As Kanat Sultanbekov mentions, tenant retention is a vital part of a healthy and profitable bottom line for a rental property business. To maximize tenant retention, property managers are likely to require a combination of value-driven services, proactive management, as well as strong tenant relationships.
