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Minimizing tenant turnover is in the best interest of any landlord. When a tenant chooses to move, the time and money spent on preparing the space for a new tenant as well as the effort put into marketing that property and screening applicants is not insubstantial. Keep in mind that empty properties mean less income — vacancy is certainly not your friend as a landlord.
So how can a landlord reduce tenant turnover? Here are a few tips for retaining tenants and cutting down on turnover to increase revenue, from letting tenants pay rent online to offering discounts and incentives to renew their lease.
Related: A Marketing Guide for Filling Vacant Income Properties
Find quality tenants
Good tenants do much more than simply pay rent on time. They will treat your property with respect, will not be disruptive to you or your other tenants and will rent long-term. Long-term tenants cut down on the amount of time you have to spend on marketing, repairing and refreshing the rental in between occupants.
Finding quality tenants takes time, but the extra work is worth it when you reduce vacancies and increase revenue.
What are the best ways to find good tenants?
Figure out who your ideal tenant is:
The first step in finding quality tenants is figuring out who exactly your ideal tenant is. If you’re looking for renters who may be more likely to stay for multiple leases, moving to a neighborhood with good schools can attract young families. Families tend to stay in a rental longer than perhaps a young professional who is fresh out of college.
Then, be sure your property matches your ideal tenant’s needs. For example, if you’d like to start housing young families, make sure your rental is child-friendly. You’re more likely to have success finding your ideal tenants if your rental is in an area that caters to them — if you prefer to house students, your rental should be near a university. Young families want close proximity to parks and good schools, and young professionals would most likely prefer to be near fun restaurants and bars.
However, keep in mind that no matter who your ideal tenant is, all applicants must be screened the exact same way. Follow fair housing regulations with each applicant, and remain objective in your tenant judgment process.
Complete tenant screenings:
It’s a good idea to have an objective tenant screening system to ensure that you’re following Fair Housing Laws and regulations. Tools like tenant screening checklists help you apply the same screening procedures to each applicant and reduce the chances of unknowingly having a bias towards one applicant over another.
Work to keep them happy:
Once you find a good tenant, be sure you do what it takes to keep them living in your property. If they have maintenance requests, respond to them quickly, and be sure to only raise rent when it’s appropriate. If you run into them in the leasing office or on the grounds, say hello! Small gestures like that can have a big difference in how at-home a tenant feels in your property.
Related: Looking for the Perfect Tenant? Seek out These 6 Traits!
Upgrade the property
Another measure that minimizes tenant turnover is maintaining and upgrading the property. Make sure the appliances are working, and upgrade paint, flooring and other aesthetic aspects periodically. These small things all work to make the tenant feel more comfortable in their space and reduce their desire to live elsewhere.
Once you’ve upgraded the property to the best of your ability, it can be smart to offer discounts like coupon books or renewing incentives to make the tenants feel like they’re valued. Coupon books with discounts from local businesses are convenient for those new to the area or for anyone looking to get out on the town, while incentives can encourage tenants to renew their lease, refer a friend or do another task that benefits them and your business.
Collect rent online
Collecting rent online minimizes tenant turnover by being more convenient than checks or cash, allowing tenants to pay in the way that is most helpful to them. If they want to pay from a savings account, checking account or credit card, electronic rent payments can allow them to do so. By catering to tenants’ needs in allowing them to submit a rent payment online, they are more likely to stay longer in your property.
Pick quality property management software by shopping around and doing your own research, and set it up with the help of their customer support team or online resources. Once you have everything up and running, share the payment portal with your tenants. You’ll be collecting rent online in no time.
Online rent collection and property management software is also helpful to landlords because many come with a host of other benefits. Landlords can see tenants’ rent payment history, automatically charge late fees and enjoy many other helpful features.
Reducing tenant turnover should be one of your main considerations as a property investor. By keeping tenants in your properties, you can ensure that vacancies are few and far between, saving you time and money.
