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Minimizing tenant turnover is in every landlord’s best interest. When a tenant decides to move, the time and money spent preparing the space for a recent tenant, in addition to the effort put into marketing the property and screening candidates, are not insignificant. Remember, empty properties mean less revenue – vacant properties are definitely not your pals as a landlord.
So how can a landlord reduce tenant turnover? Here are some suggestions to retain tenants and reduce turnover to increase revenue, from allowing tenants to pay rent online to offer discounts and incentives for renewing leases.
Find quality tenants
Good tenants do greater than just pay their rent on time. They treat your property with respect, won’t trouble you or your other tenants, and will rent for the long run. Long-term tenants reduce the time you have to spend marketing, repairs, and refreshing your rental between tenants.
Finding good tenants takes time, but the extra effort pays off when vacancies decrease and revenues increase.
What are the best ways to find good tenants?
Consider who your ideal tenant is:
The first step in finding good tenants is determining exactly who your ideal tenant is. If you’re looking for tenants who may be more likely to stay on multiple leases, moving to a neighborhood with good schools can attract young families. Families tend to stay in their rentals longer than a young skilled who just graduated from college might.
Next, make sure your property meets the needs of your ideal tenant. For example, if you’re looking to start renting to young families, make sure your rental is kid-friendly. You’re more likely to find the ideal tenants if your property is in an area that appeals to them—if you’re looking to house students, your property ought to be near a university. Young families want to live near parks and good schools, while young professionals are more likely to want to live near cool restaurants and bars.
But remember, regardless of who your ideal tenant is, all candidates must undergo the very same screening process. Follow fair housing laws with every candidate and remain objective in your tenant evaluation process.
Full tenant control:
It’s a good idea to have an objective tenant screening system to make sure you’re complying with fair housing laws and regulations. Tools like tenant screening checklists provide help to apply the same screening procedures to every applicant and reduce the probabilities of unknowingly favoring one applicant over one other.
Work to keep them completely happy:
Once you have found a good tenant, make sure you do every little thing you would like to keep them in your property. If they have maintenance requests, respond quickly and make sure you simply raise the rent when appropriate. If you bump into them in the leasing office or on the grounds, say “hi”! These small gestures can make a big difference in how comfortable a tenant feels about your property.
Improve Property
Another way to minimize tenant turnover is to maintain and improve the property. Make sure appliances are working, and periodically update the paint, flooring, and other aesthetics. All of those little things make a tenant feel more comfortable in their space and less likely to want to move elsewhere.
Once you’ve improved your property to the better of your ability, it’s a good idea to offer discounts, akin to coupon books or renewal incentives, to make your tenants feel valued. Coupon books with discounts from local businesses are convenient for those recent to the area or anyone looking to get out into the city, while incentives can encourage tenants to renew their lease, refer a friend, or complete one other task that may profit them and your small business.
Collect rent online
Collecting rent online minimizes tenant turnover because it is more convenient than checks or money, allowing tenants to pay in the way that is most convenient for them. If they need to pay from a savings account, checking account or bank card, electronic rent payments can allow them to do so. Meeting tenant needs by allowing them to submit online rent paymentthey are more likely to stay at your property longer.
Choose a high-quality property management software by doing all of your research and consideration, and set it up with the help of your customer support team or online resources. Once you’re ready, launch a payment portal for your tenants. You’ll be collecting rent online in no time.
Rent collection and online property management software is also helpful for landlords because many of them offer a number of other advantages. Landlords can see the rent payment history of tenants, mechanically charge late fees and benefit from many other useful features.
Reducing tenant turnover ought to be one of your top goals as a real estate investor. By keeping tenants in your properties, you possibly can make sure that vacancies are few and far between, saving you time and money.