For rental property owners, tenant turnover is one of the fastest ways to curtail your cash flow and diminish the return you earn on your investment. When your tenant tells you that they’re moving out, you’ll not only have to deal with a vacancy, you’ll also have to make some property improvements, cover the cost of utilities, landscaping, and pest control without rent coming in, and then spend time and money on marketing, showings, and screening as you identify and place a new tenant.
Reducing tenant turnover not only ensures a steady stream of income but also maintains the value of your investment over time. It creates more stability, and it saves you both time and money.
At Hartford Property Management, we always prioritize tenant retention when we’re managing properties because we understand the importance of consistent, recurring income. Our tenants stay with us longer because they enjoy the homes they’re living in, and they know that we value them as residents.
Take a look at some of the most effective strategies that we put into place as York County property managers when we’re minimizing tenant turnover and promoting long-term occupancy in your rental properties.
Understand Your Tenants’ Needs
We make it a point to understand the needs of our tenants and to listen to their requirements and their frustrations. A lot of times, tenants want to be heard, even when they come to you with a complaint or a problem. When you’re empathetic and compassionate, they feel supported, and they feel acknowledged.
So the first step in reducing tenant turnover is pretty basic: understand who your tenants are and what they need from you. When you’re discussing your requirements and going over the lease agreement, you’ll likely share your expectations with the new tenants preparing to move into your property. That’s good. Being open and direct about what you need from your tenants will set them up for success. They’ll know exactly what they’re responsible for, and how they should take care of your property.
Those tenants will have their own set of expectations for you, and you must be willing to hear them.
During the tenancy, keep checking in. You can conduct surveys or welcome informal chats to get insights into their satisfaction with the property. Are there recurring issues that cause them problems? Is there something that they’ve requested that you can provide?
Understanding these needs can help tailor your services to increase tenant satisfaction.
Screen for Long Term Tenants
Attract great residents who are likely to renew their leases year after year and stay for the long term.
This requires a strategic screening process. Well-qualified tenants will have a history of successful, long-term residencies at their former homes. When you’re looking for a tenant who will stay for more than just one lease term, pay close attention to the applications that are coming in. You don’t want to approve a tenant who has a rental history of five or six-month tenancies over the last two years.
Identify the tenants who have a history of staying in place for several years. Make sure you’re following all fair housing laws while you screen, and take every step you can to choose a high-quality, long-term tenant. This is the best place to start when it comes to tenant retention.
Maintain Open and Transparent Communication
Retaining tenants starts with a good relationship, and you cannot have good relationships without good communication.
Make a clear, consistent, and transparent communication system your priority. Whether we’re talking about emails, texts, phone calls, or even in-person conversation, investing in positive and proactive communication can help build a strong landlord-tenant relationship.
Be responsive. Always.
Tenants should feel comfortable reaching out to you with their concerns. Regular updates regarding maintenance schedules, policy changes, or community events can make tenants feel more connected and valued.
Keeping yourself available, accessible, and responsive to the needs of your tenants will help you have better tenant retention. We’re always surprised at how unwilling many landlords and property managers are to communicate with their residents. You have to keep in touch, and you have to be ready to answer the phone or respond to messages.
Respond Right Away to Maintenance Issues
We have looked at a lot of the statistics on tenant turnover, and one of the main reasons tenants decide to move out of a rental property is that their repair requests are ignored. You don’t want to lose a good tenant this way.
Be quick to respond to those maintenance requests, even when they’re routine repairs.
When you make maintenance a priority, you have a better chance of keeping your residents for the long term. Put together a plan for responding to emergencies and routine issues. Implement and prioritize preventative maintenance, and you’ll find that there are fewer emergencies. Not only is that good for your tenant retention plans – it’s also good for your finances and for the condition of your investment.
Emergencies obviously require an immediate response. But, a landlord focused on tenant retention will respond with the same sense of urgency when there’s something simple needed by their tenants, even a garbage disposal that’s stuck or an outlet that isn’t working.
That clogged garbage disposal or creaky screen door might not seem like a big deal, but your tenants will appreciate your immediate response.
Preventative maintenance is also critical. Pest control is important, and so is landscaping. You’ll want to have the HVAC system inspected and serviced annually. This will increase efficiency and your tenants will appreciate the lower utility bills.
Communicate what you’re doing even when there’s a delay in the maintenance you’re able to provide. Maybe your vendors are waiting for parts; when you keep tenants informed about the process, they’ll understand that you’re taking care of the property and providing a safe, habitable, and attractive home.
Make Market-Based Rental Increases
Most York County tenants will expect that their rent will go up when it’s time to renew the lease agreement. If they’re having a good experience with you and they like their home, they won’t be in a hurry to move.
Unless you’re over the top with your renewal rate.
You certainly don’t have to freeze rent increases in order to keep good tenants. Don’t be afraid to raise the rent when you’re negotiating a lease renewal. But, do it reasonably.
Check the market and take a look at what similar rental properties are renting for. Don’t increase the rent by too much, and make sure you provide your tenants with enough notice before the new rent takes effect. This will lead to better retention.
When you’re going to increase the rent, take a good look at the market. Then, be strategic. For example, perhaps you’ll feel justified in raising the rent 5 percent based on the data you’ve seen. Consider raising it 3 percent instead, and let your tenants know that you’re keeping the rent lower than the market value of your property because you value their tenancy.
Practice Keeping Your York County Tenants Happy
Investing in happiness is actually a great business strategy. You might not realize it, but working towards happy tenants means enjoying tenants who pay rent on time, help you take care of your property, follow the requirements of the lease terms, and renew their lease agreements year after year.
Happy tenants lead to less turnover. Think about it in terms of customer service. Make your tenants happy that they live in your property and rent from you. It doesn’t require a lot of time or a huge investment. Simple things will go a long way. Say thank you when rent comes in. Send cards or well wishes on holidays and birthdays. Be a real person instead of a nameless, shapeless landlord.
Consider Cost-Effective Upgrades
To avoid turnover, you want to keep your property looking modern and attractive. Tenants will appreciate professionally cleaned carpets or fresh paint when their lease agreements renew. You can offer a new appliance if the refrigerator or washing machine is looking old and dated. Installing energy efficient appliances and lighting will not cost a lot, but will go a long way in retaining great residents.
You don’t have to spend a lot of money or completely renovate your house. Just show your tenants that you care about the property and their happiness while they live there. If they request something specific, be willing to consider it.
Provide High Quality York County Property Management
If you’re not already working with a qualified and experienced York County property management company, now is the time to consider it. Not only will property managers help you earn more and spend less on your investment in general, we’ll have plans in place to find, place, and retain the most qualified tenants in the local rental market. We have the time, resources, and knowledge to respond to all of your tenant’s needs and to stay one step ahead of the market and the industry trends.
Remember the best ways to retain tenants: providing convenience, prioritizing maintenance, communicating well, and keeping rental increases reasonable. With a little extra effort and respect for your residents, these strategies can make all the difference in tenant loyalty and satisfaction.
Keeping turnover low is crucial to the success of your rental property. If you’d like to talk further about how to hold onto your excellent tenants, we’re here to help. Please contact us at Hartford Property Management.
