Keeping tenants happy and loyal to your property is good business.
It leads to better tenant retention, and better tenant retention means less vacancy loss. It also means that you avoid those expensive tenant turnovers, where you’ll be expected to repair the wear and tear on your property, make maintenance upgrades, and invest in renovations and improvements that will attract a new tenant to your property. Retaining your current tenants means you don’t have to spend time and money marketing, screening, and advertising to find new tenants.
We prioritize tenant retention, and not just because it’s good business.
We do it because, at Fostr Property Management, we’re all about relationships.
Our relationship with you, the owner, is important to us. Our relationship with your property is important, too. We appreciate the trust you put in us to lease, manage, and maintain your valuable asset.
We also value our tenant relationships, and that’s one of the reasons tenant retention is so easy for us. Our residents appreciate the attention they receive from our team. They can see how much we care about their comfort and your investment. It matters.
Today we’re sharing secrets.
Tenant retention secrets.
Let’s take a peek at what helps us hang onto those good residents for longer, increasing your earnings and providing stability for your investment.
Maintain Open and Transparent Communication
Relationships don’t work without good communication. That’s not a secret.
What you might not realize is how important listening, sharing, and communication are to your tenants. They’re looking for ease, convenience, and accessibility. If there’s a problem at the property and they can’t find anyone to help them, they’ll get frustrated quickly. If they feel like their landlord or property manager is minimizing their complaints or avoiding their concerns, they won’t be interested in remaining loyal to the property.
Effective communication is key to building trust and ensuring tenants feel valued. Open channels of communication can preempt misunderstandings and foster a positive relationship between tenants and property managers.
We’re renting out lovely homes, luxury condos, and impressive properties across Playa Vista, Westchester, and Playa del Rey. Our tenants have high expectations. We do, too. So, the best way to begin a great relationship that’s based on good communication is by sharing those expectations ahead of the lease term. We talk to the residents who are moving in. We go over the lease terms. We answer all of their questions completely.
Everyone understands their responsibilities and requirements. This type of transparency encourages a meaningful relationship and a higher chance of tenant retention.
Other ways to prioritize communication include:
Providing Regular Updates. Send monthly emails or updates about property improvements, upcoming events, or any local changes. When tenants see you as a resource, they’re more likely to renew their lease agreements.
Keep Contact Information Up to Date. Provide multiple avenues for tenants to reach you, such as email, phone, and a tenant portal. It’s important that they can reach you 24/7 if you’re not working with a property manager.
Request Feedback. Regularly ask tenants for feedback on their living experience and promptly address any concerns. You want to remain in constant communication so you can be sure you’re aware of any existing or potential problems. You also want to know what they love about their living experience so you can continue to impress them.
Offer Flexible Lease Terms
A lot of residents today are looking for flexibility. That’s more important to them than rental price or amenities. Lifestyles are changing. People renting a luxury condo near the water may want to rent for a period of time that’s outside of the standard 12-month lease. Your remote working tenants might ask to have internet installed before they move in.
Be willing to consider anything that will improve someone’s rental experience with you.
Flexibility in lease terms can make a significant difference in a tenant's decision to stay. Providing options shows that you understand and accommodate their needs.
You can customize lease durations. Offer various lease terms, such as six-month, 18-month, two-year, or month-to-month options. A shorter lease term can always lead to retention; tenants might think they’re staying for a specific period, but then find they don’t want to leave.
Provide renewal incentives. Maybe you’ll offer a small discount on rent or a new appliance. Provide early termination clauses in your lease just in case there are specific conditions that would require a tenant to leave early. This may seem counter-intuitive when we’re talking about retention, but your residents will appreciate knowing that you understand that things happen. They’ll appreciate your willingness to be flexible.
Prompt Maintenance and Repairs
Good maintenance policies will always increase tenant retention. It’s pretty obvious why; tenants want to know that you care about their problems. They don’t feel like they should have to live with doors that don’t close, appliances that don’t work, or sinks that endlessly leak.
One of the main reasons tenants leave a rental home is dissatisfaction with how maintenance issues are handled. Quick and efficient repairs show that you care about the property's condition and your tenants' comfort.
Maintenance policies to implement include:
24/7 Maintenance Hotline. Offer a round-the-clock contact number for maintenance emergencies. When there’s a leaking water heater in the middle of the night or a window that has broken over the weekend, you need to take care of these things right away. Don’t make your tenants wait. Give them a way to get in touch immediately.
Conduct Regular Inspections and Walk-Throughs. Conduct regular property inspections to catch and address issues before they become major problems. We believe tenants are partners when it comes to maintenance, and they’re often willing to help us. We schedule our walk-throughs well in advance and always invite them to be with us when we’re taking a look at the home.
Invest in an Efficient Work Order System. Use a streamlined work order system to track and prioritize maintenance requests. This will keep you organized and consistent, and your tenants will not have to wonder where the repair stands or when they can expect a vendor.
Make Regular Property Improvements
Upgraded amenities and improved homes can significantly enhance the living experience and make your property more desirable compared to others. High-quality tenants are looking for modern appliances. They want high-quality, energy-efficient systems. Don’t settle for a refrigerator that’s 20 years old.
Smart home features are popular with tenants today, too. Integrate smart home technologies, like thermostats and security systems, to appeal to tech-savvy tenants. This also speaks to their sense of environmental stewardship. More and more tenants are privatizing green rental homes and looking for sustainable living situations. Be willing to install LED lights and better insulation.
Remain Transparent and Fair Rent Increases
Tenants are paying a lot of money to live in the properties we rent out. It’s important to us that they feel like they’re getting the experience that they’re paying for. We want them to know that we understand value. We’re committed to it.
Most residents will expect the rent to go up when the lease renews. But sudden or steep rent increases can drive tenants away. Transparently communicating rent adjustments and keeping them reasonable can help maintain tenant satisfaction.
Provide as much advance notice as you can before the rent goes up. Inform tenants of any rent increases well in advance and make it a part of your lease renewal process. Explain the reasons behind rent increases, such as property improvements or rising maintenance costs. We like to ensure our owners are earning more on their properties every year. We can do this while keeping annual rent increases within a reasonable range to avoid shocking tenants.
Our Tenant Relationships Lead to Retention.
Personal relationships can make tenants feel more valued and appreciated, increasing their likelihood of staying. We set boundaries, of course. It’s not ever a good idea to become too close to the people renting your home. However, a personal touch can go a long way. Remember tenants' names and important dates, like birthdays or anniversaries. Periodically check in with tenants to see how they are doing and if they need anything. Send holiday cards or small gifts to show appreciation.
Enjoy the Financial Impact of Tenant Retention
Retaining tenants has a profound financial impact on real estate investors. High turnover rates can create significant costs, including advertising, screening, and vacancy. A stable tenant base contributes to consistent cash flow and a more profitable rental experience.
Keeping reliable tenants happy is essential for success. You cannot have tenants leaving your properties at the end of every lease; it will be hard to keep your cash flow positive. We invite you to think about tenant retention and to implement these strategies, creating a more enjoyable living environment and ultimately reducing turnover rates.
Remember, a happy tenant is a long-term tenant. We invest in happy tenants.
Let’s talk about how to make this a priority at your rental home or throughout your entire portfolio of investment properties. Contact us at Fostr Property Management. We are serving investors and owners in Playa Vista, Westchester, Playa del Rey, and the surrounding areas.
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