The rental vacancy rate in the US is almost 6%! If you don't have a tenant retention plan, you won't maximize revenue from your investment property. Don't let your rental properties remain vacant!
Instead, consider investing in property leasing management to keep great tenants longer.
Not sure how to increase your tenant retention rate? Read on for the tips you need for success!
Address Requests Quickly
Tenants won't consider lease renewal if they've experienced issues while living at your investment property. Keep tenants happy by quickly addressing their concerns. Try to remain proactive with your property inspections and maintenance requests.
Show your tenants you want to give them a nice place to live. They'll get frustrated if no one helps fix their leaky faucet or broken AC unit.
Consider offering incentives when it's time to discuss lease renewals.
For example, you can offer a deep cleaning or professional carpet cleaning service. Your tenants will feel appreciated, which could encourage them to stay another year.
Be Kind
Be kind and patient when talking to your tenants. They'll recognize you're a friendly person and want you as their landlord.
Make sure it's easy for tenants to contact you. A lack of communication could lead to misunderstandings and frustration.
If you don't have time to interact with your tenants, consider hiring a property management company. Their human touch will ensure your tenants receive the care and attention they need.
Meet Market Demands
About 36% of American households currently rent their home (44.1 million out of a total of 122.8 million households). Keep track of what tenants want from rental properties and their landlords.
When looking for rental properties, tenants look for:
- Upgrades/renovations
- Location
- Safety and security
- Parking
- Move-in ready conditions
- Open floor plans
- Storage
- Outdoor spaces
- Cooperative landlords
Younger renters consider lifestyle quality. Market features and amenities to attract long-term tenants. Study rooms, a pool, hardwood flooring, and other upgrades could entice them to stay longer.
Be Proactive
Let your tenants know well in advance that you're interested in renewing their lease. Contact them within 90 days of the lease expiring.
An early notice will encourage them to consider their options. If they decide to move, you can get a jump on advertising your investment property.
You can also encourage tenants to stay by forgoing a rent increase (or keeping the increase lower than usual). Try to negotiate a deal that works for you both. Communicate with your tenant to meet their needs.
If you need to attract new tenants, consider encouraging longer leases from the start. A tenant might prefer a longer lease at a reduced rent rate.
Invest in Leasing Management Services
You don't have to apply these tips on your own. Instead, consider investing in leasing management services this year. Working with a property management company will ensure you keep renters happy without stress.
With help, you can increase tenant retention and your annual revenue!
Ready to generate more income from your real estate investments? We can help.
Contact our team at PMI STL Metro to learn more.
