I am not here to say that I have the best retention rates, but I feel like I have had some success with my tenants and keeping them around. Through the years I have learned a few things that have help me increase my retention rate, because lots of turnover means vacancies, and that means you are missing out on $$$$.
Tip #1: Know your market
A good landlord knows his product and his market place. You should know if your property is outdated or overpriced compared to what is available in your area. If you have a outdated property and don’t want to spend the money to rehab it make sure you are not pricing it with the new remodeled property down the road.
Tip #2: Learn your tenants dream improvement list:
Your best resource is is understanding what tenants want, always interview outgoing tenants to see what they wish they had at your property while they lived there.
Make a list of these dream improvements. Once you compiled the list you might realize some items are a dream, but others are simple and realistic improvements that can be done.
Keep updating this list, and every once in a while, choose the update with the best return on investment.
When you inform your renters, tell them you listened to them, and because you value them as renters, you’re going to make XYZ improvement. They’ll feel valued, and they’ll (of course) want to stick around and enjoy this new property update.
Tip #3: Be Responsive:
Ignoring residents isn’t going to help retain them. They need a property management company or landlord willing to listen to them. Even if the management company or landlord isn’t able to make a change for a resident, knowing that the resident had their voice heard may be enough to retain them. Make it a goal to get back to your tenants with 24 hrs. Even if it is a simple message saying I got your message and I am working on it. That way they know they were heard.
Tip #4: Keep the property well maintained
Nobody wants to live in a place the is trashed or falling apart. A clean, well-kept property means happy residents who want to keep living there.
Tip #5: Set expectations up front:
Make sure tenants are aware of what you expect from them from the very first day in regards to maintenance, rents, communication, etc. That way they don’t ever feel blind sided.
Tip #6: Call When sending important notices
Yes, by law, you often have to send certain notices in writing. But that doesn’t mean you should leave it there.
Speaking with your renters on the phone before they receive a cold, hard written notice will establish a dialogue, rather than an edict from above. You want to have a relationship with your renters, albeit a professional one.
This gives you a chance to explain the lease renewal options and varying rent hikes. It also gives you a chance to learn exactly why a tenant missed their rent payment. It shouldn’t affect whether you file for eviction or not—you should always file eviction like clockwork; this is a business—but it does give you context.
Your renters will appreciate the human connection of a conversation, rather than just receiving certified letters in the mail or a notice taped to their front door.
Bonus Tip: Call before entering the property
It just demonstrates and show respect that you might have for the tenant
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