Estate and mortgageTenant Retention Strategies
For a landlord, determining how to keep tenants longer can be much like nailing jell-o to the wall. After all, apartment-renters are by nature a transient population. In many cases, that"s why they"re renting and not buying. They want flexibility, the ability to move or buy when the time is right.
From the landlord"s perspective, it"s obviously better to have all units occupied all the time. Vacancies mean lost income while frequent tenant turn-over can mean big expenses for repairs and re-painting. And new tenants, when you get one, are not a sure bet in terms of timely payments or respect for the property.
So how do individual landlords and management companies improve tenant retention? It"s not easy, especially in markets where there are more units than demand.
Pricing
Given comparable units it sometimes best to price rents somewhat below the market, say $25 a month. At first this may seem like an annual loss of $300, but if it means renting sooner or fewer vacancies, such lost income is really a marketing cost well spent.
Incentives
Structure the lease so that the last month is free or half-price. The attraction of this benefit is that it only kicks-in when tenants complete their lease, a fair deal for everyone.
Use Tenant Marketing
In some cases current tenants have friends, co-workers, relatives, and others who might be good rental candidates. Be sure to tell current tenants when units are likely to be available.
Be A Good Landlord
Landlord/tenant relations need not be the real estate equivalent of war. Tenants must meet certain expectations, and so should owners. In particular, properties should be well-maintained, repairs should be made promptly, and tenant concerns should be heard. The benefit: a better rent roll and a more valuable property.
Reach Out
A range of institutions have ongoing needs for rental properties -- military bases, universities, hospitals, and big corporations are all likely to have housing offices. Speak with housing officials. They can advise you regarding requirements to be listed on their system and pricing information.
Survey Tenants
Every six months ask tenants to evaluate the property -- ask about such matters as cleanliness, maintenance, exterior areas, amenities, noise, parking, and management.
Communicate
Communication can increase resident satisfaction. A newsletter, for example, can keep everyone informed regarding the property, community events and resident news. It"s also a good place to announce improvements. A community bulletin board can also have value. Newsletters and bulletin boards can announce community events such as cook-outs and parties.
Fair Notice
If you"re going to raise rates, then give tenants adequate notice -- as much in advance as possible. Where applicable, rent control laws may have minimal notification requirements, but landlords are not prevented from giving notice well in advance of statutory requirements.
The nature of the landlord-tenant relationships is often one of complaints and disputes -- but it doesn"t have to be this way. Landlords can do their part, and the result can be increased retention rates, fewer vacancies, and greater property values.
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