Tenant retention is crucial for a rental property’s profitability. It costs as much as three times the monthly rent when a tenant leaves. To maintain profitability, a landlord must find ways to keep tenants in the building.
Here are five ways a landlord can improve tenant retention:
- Offer quality property. It’s well known in property management that quality properties attract quality tenants and poor properties attract subpar tenants. Offer your tenants a good, clean property they can feel proud to call their home. That curbs motivation to leave.
- Screen your tenants rigorously. Verify income and debt to ensure they can afford to stay. If they can’t afford rent, hefty costs come down on you. We recommend the take-home income for each tenant is at least three times the monthly rent.
- Keep your property safe and in good condition. An improperly maintained home is frustrating for most tenants. Make sure your tenants can submit their maintenance needs around-the-clock and keep response times quick. Tenants will be less likely to leave if you do.
- Fair rental price. It is important that the rent the tenant pay is fair. Finding the right rental price for your property can be tricky. You don’t want to charge too much and risk losing tenants to cheaper alternatives, but you also don’t want to charge too little and make tenants doubt the quality of your property. A good way to avoid these problems is to do a market analysis every year and compare your property with similar ones in the area. This will help you set a fair and competitive rental price. Hire a property manager if you are unable to do a proper market analysis.
- Communicate effectively so your tenants know you value them as a resident and a human being. Reply to phone calls, emails and text messages promptly. Your tenants should feel comfortable contacting you about any lease-related issues. They’ll be frustrated if they can’t reach you, which could lead to them not renewing their lease. If you don’t want to deal with tenants, you should hire a property management company.
Crest Premier Property Management has a reputation for keeping tenants in their homes. If you’re struggling with tenant retention, then it’s time you contact us.
Crest Premier Property offers management services that keep your property fully occupied while earning more rental income from your investment.
This sponsored content was first published in the September edition of InMaricopa Magazine.