How to Keep Good Tenants
Imagine a portfolio of rental properties with no evictions. No late payments, no damage, and no turnover.
That's the dream of any rental property owner—to have a stable set of tenants that take great care of their rental homes without causing waves on a day-to-day basis.
It's not easy, and it doesn't happen by accident. But it is possible, one tenant at a time.
With the right strategies, you can attract and keep good tenants for years to come. In this article, we'll dive into several methods you can use to retain your best tenants. First, let's examine the importance of keeping long-term tenants.
Importance of Keeping Long-term Tenants
Lower turnover equals lower operating costs
Keeping long-term tenants can help save the costs associated with frequent tenant turnover. This includes the time and resources spent advertising, showing the property, processing new applications, preparing lease agreements, conducting move-out and move-in inspections, and making necessary repairs or cleaning.
Having long-term tenants also means that the landlord can avoid the hassle and uncertainty of finding new tenants or risking vacancy if a suitable tenant can't be found quickly.
Higher tenant satisfaction and loyalty
Long-term tenants are typically more satisfied with their living experience and are more likely to renew their leases.
When tenants are happy with their living experience, they're more likely to pay their rent on time, take care of the property, and be respectful of their neighbors. This can lead to increased tenant loyalty and, in turn, a higher likelihood of recommending the property to their friends and family.
Improved property reputation and demand from other local tenants
Long-term tenants can also enhance the property's reputation, which can help attract new tenants. Happy tenants tell their friends, guests, and family members. In turn, when someone in a tenant's extended network starts thinking about moving, they're likely to reach out to their friend with the great landlord to see if there are any available rentals.
Building a Strong Tenant-Landlord Relationship
This section will discuss a couple of ways to plan ahead regarding typical landlord-tenant interactions.
Regular and open communication
Establishing regular and open communication early is essential in building a solid tenant-landlord relationship. You want the tenant to feel like they can reach out when they have a question or issue but also not become a nuisance if they see a spider on a Saturday evening.
Technology can help here. If you're using property management software, a tenant communication portal will likely be built in. Establishing how you'll communicate when a tenant moves in will set the tone; from there, it's just a matter of responding in the best way for each situation.
One other note - don't let it go too long without touching base with a tenant. A few months is totally fine. Ideal, even. Assuming all is well, rent is paid on time, and there's been no communication, a casual reach out every 3-6 months "just to check in and see how you're doing" can add a friendly touch, letting the tenant know they're more than just a rent payment.
Prompt response to tenant inquiries and concerns
Responding promptly to tenant inquiries and concerns is crucial in maintaining a positive relationship. When tenants feel that their concerns are being heard and addressed, they are more likely to be satisfied with their living experience.
That doesn't mean the answer is always what they want to hear at that moment, but it's important that someone with an empathetic ear listens to their concerns and responds in a way that lets them know you take the issue seriously and are working to resolve it for them.
If you're looking to build a long-term relationship with a tenant, they should never say, "I don't know what's going on; I haven't heard from them."
Of course, some situations will dictate a waiting period, where you may not know what's going on. But, a simple call, email, or text letting them know you don't have an update yet, but will keep them posted goes a long way.
In addition to the usual tenant-landlord communication, there are other tactics you can deploy to build positive relationships with your tenants.
Providing appreciation and recognition
Show your tenants that you value them by recognizing their efforts. This could be as simple as a "thank you" for paying rent on time or taking care of an issue quickly.
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You can also show appreciation and recognition through special events like tenant appreciation days or sending out thank-you cards. Even something as simple as a "Happy Birthday" card to tenants on their birthdays can show them you care.
Maintaining the Property
A lack of maintenance and delayed response to repair requests rank at the top of tenants' negative reviews. Having a proactive, preemptive strategy to handle these issues is far and above the biggest difference-maker when it comes to keeping a tenant long-term.
Regular maintenance
There is a proven, best way to handle all maintenance requests that come in from tenants. There are several ways you can respond; text messages, a return call, or using software. The method can vary, but the message is always the same.
A prompt, empathetic/understanding response to maintenance requests is a good start. Including a follow-up, after the work is complete will let tenants know you care and want to make sure they're happy with the result.
Regular cleaning and landscaping to keep the property attractive
Keeping the property clean and attractive will keep tenant morale up and let tenants be proud of where they live. On the other hand, failing to keep up with the property will invite tenants to do the same, creating additional issues to handle.
Regular cleaning and landscaping go a long way. If your property has common areas shared by tenants, make sure they look good. Well-swept staircases, handprint-free doors and walls, and a natural air freshener hidden away will make a difference.
Upgrades and improvements
Upgrades and improvements to the property can play a significant role in keeping long-term tenants. Regular upgrades and renovations can keep the property attractive and desirable to tenants and maintain its value. This can also help to increase demand from new tenants and maintain high occupancy rates.
In a larger property, like a multi-unit apartment building or community, offering new amenities and facilities can also help improve tenants' living experience and keep them satisfied with their rental experience. This can include adding community spaces, such as outdoor areas, community gardens, fitness rooms, updating laundry facilities, or common rooms.
What about smaller landlords, though?
For small landlords with limited resources, offering new amenities and upgrades may seem daunting. However, there are still several ways owners of a single property can improve the living experience for their tenants.
One option is to focus on minor upgrades and improvements to the unit itself. This can include installing new appliances, updating fixtures, or painting the walls. Even small upgrades can make a significant impact on the overall comfort and appearance of the unit.
Another option is to make outdoor spaces more appealing and functional. This can include adding a small seating area, planting flowers or trees, or installing a barbecue area.
By making outdoor spaces more attractive and inviting, landlords can encourage tenants to spend more time outside and enjoy the property.
Is it all worth it?
If you're thinking, "This sounds like a lot of work." You're right. It takes some time to plan and build a long-term tenant retention strategy. However, those actions step by step enhance and improve your property. If you compare that to the eviction, turnover, and leasing process, the answer is a resounding "Yes, it’s time well spent."
By: Arthur R. van der Vant
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