How to Boost Your Tenant Retention Rate

July 19, 2019

In any property, keeping your tenants happy is crucial to sustaining your business and maintaining cash flow. Residential property managers in particular face the challenge of keeping tenants satisfied with their living arrangements and ready to continue renewing a lease. While there are plenty of methods to increase client satisfaction, several tried-and-true methods are sure to keep your tenants happy and help you boost your tenant retention rate.

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A Relationship with Your Tenants

Keeping a sustainable amount of property tenants depends on a delicate balance of professionalism and friendly relations. An overly friendly landlord is likely to be taken advantage of, while an overly businesslike manager may turn people off. Thankfully, there are plenty of ways to maintain a solid middle ground. These methods can help you with retaining tenants:

Provide what renters want
Screen every application
Don’t just send written notices
Respond to requests quickly
Gestures of friendliness

1) Provide What Renters Want

In a nutshell, renters want a safe, appealing place to live without paying through the nose for it. While you shouldn’t lower rent to the point that you lose profit, it’s important to ask for a price that the market can sustain. Based on your property’s size, amenities, safety rating, and other factors, what’s a reasonable price to request?

Additionally, listen to your renters. What improvements or changes would they make if they could? See what you can realistically implement to better your facility.

Pro Tip: Try providing an incentive program for references from your current tenants. Not only will this give you some free marketing, but it will also encourage your tenants to stay longer since their friends now live nearby.

2) Screen Every Application

A bad tenant will not only cost you more money in damages but can also drive away good renters and pull your profits down. Thus, tenant screening is crucial before you permit anyone new to move in. While their financial history and ability to pay is your first concern, consider how they behave as well. Were they friendly and professional during your meetings? Do they seem like people you’d be happy to have in your property?

Screen your current tenants as well as potential renters. If anyone is consistently costing you huge amounts of money in damages and just being an unpleasant, destructive tenant, it’s time to file for eviction.

3) Don’t Just Send Written Notices

By law, property managers generally have to provide written notice before entering an apartment. However, most tenants would appreciate an additional courtesy call. Not only does this ensure your tenants know you’re coming in case they miss the notice, but it also demonstrates a willingness to connect with your tenants on a more personal level. A quick phone call to schedule a visit shows respect for your renters.

4) Respond to Requests Quickly

From time to time, tenants will call you looking for help with something. Whether they need repairs, help with a problem, or just have a question, you should always be prepared to help your tenants quickly. Not only will this satisfy your renters, but it will also keep any damages from worsening and costing you more repair funds.

5) Gestures of Friendliness

While most of your interactions with your tenants will be businesslike and professional, it never hurts to show general friendliness to maintain a good relationship. A few ideas include:

Send holiday cards to good tenants
Show interest in their lives, even on a service call
Offer rent hike relief options

Balancing Your Tenant Retention Rate

Through strategically balancing friendly gestures with professional relations, you can keep your tenants satisfied with your rental property and encourage them to stay longer. In the long term, not only will this keep your profits high, but it will also boost your reputation and allow your rental properties to continue thriving.

Connect with us to learn more about tenant relations and balancing work with friendliness.