Last Updated on August 8, 2024 by Amanda Rose
Keeping tenants happy is key to running a successful rental property. Happy tenants stay longer, which means a steady income and less hassle for you.
However, retaining tenants isn’t always easy. It’s a challenging responsibility that requires the implementation of the right strategies. These strategies should focus on keeping the tenant happy and loyal, resulting in high retention rates.
In today’s blog, we’ll teach you 8 proven ways of retaining a tenant for optimal return on investment.
Understand the needs of your tenant.
Keeping tenants happy is key to long-term rentals. Knowing what your renters want and need can help you create a great living space they’ll want to stay in.
And the best way of doing that is by conducting regular surveys. Ask your tenants what they think. Send out short surveys every few months. Keep them quick and easy to fill out. Ask about things like apartment condition, neighborhood safety, amenities, parking, and noise levels.
Use online tools like Google Forms or SurveyMonkey. Offer a small rent discount as a thank-you for responses. Look for patterns in the feedback. Make changes based on what you learn. Tell tenants how you’ve used their input.
Create a sense of belonging for your renters.
Build a sense of belonging for your renters. Host events where neighbors can meet. Try summer BBQs, holiday parties, game nights, and fitness classes. You can set up shared spaces like dog parks, playgrounds, and rooftop gardens.
You can also start a tenant newsletter to share local news and upcoming events. In the newsletter, you can have a section where you highlight long-term renters to show you value them.
Ensure maintenance issues are addressed promptly.
Fix issues fast. Set up an easy way for tenants to report problems. Use an app or online form. Ideally, aim to respond to all requests within 24 hours, both for emergencies and non-emergencies. Let tenants know you got their message. Give a timeline for the fix.
Keep a list of trusted repair people. Have backups ready for busy times. Do regular checks to catch issues early.
Track common problems. Look for ways to prevent them. This can save you money and keep tenants happy.
Communicate with tenants effectively.
Good communication is key to keeping tenants happy and in your rental property. Clear, frequent, and open dialogue builds trust and prevents misunderstandings.
The following are some tips you can use for effective communication with your tenants.
- Set up easy ways for tenants to reach you. Give them your phone number and email address. Tell them when you’re available to talk. Create a system for after-hours emergencies.
- Use a tenant portal for non-urgent matters. This lets tenants submit maintenance requests, pay rent, and send messages online. Make sure the portal is user-friendly and works on phones.
- Offer multiple ways to communicate. Some tenants prefer texts, while others like phone calls or emails. Be flexible to meet their needs.
This will be a win-win formula for both you and the tenant. For the tenant, it’ll mean their issues are addressed as promptly as possible. For you, it’ll mean staying in the loop about property matters.
Provide the tenant with regular updates.
Send monthly newsletters with important dates and reminders. Use email or text for time-sensitive info.
Give advance notice for repairs or inspections. Tell tenants about planned upgrades or changes to the property. This shows you care about their comfort.
Check in with tenants every few months. Ask if they have any concerns or need anything. This proactive approach can catch small issues before they become big problems.
Incentivize the tenant to make them feel appreciated.
Keeping tenants happy and motivated to stay in your rental property involves more than just maintaining the space. Smart landlords use creative ways to show they value their tenants.
One way to incentivize tenants is to provide them with loyalty discounts. You can offer a small rent discount for renewing leases. This could be a fixed amount or a percentage off. For example, you might give $50 off monthly rent or a 2% discount for signing a new year-long lease.
Another option is to provide them a one-time bonus. This could be a gift card to a local store or a free professional cleaning service. These perks show you appreciate their continued tenancy.
You can also create a points system. Tenants earn points for on-time rent payments or property upkeep. They can then redeem these points for various rewards.
Upgrade the rental property.
Offering property upgrades can make tenants feel their home is improving over time. This gives them a reason to stay.
You could create an upgrade menu. Tenants can choose from options like new appliances, fresh paint, and updated flooring.
Let tenants select one upgrade per lease renewal. This gives them something to look forward to each year.
For longer-term tenants, consider more significant improvements. This might include a bathroom renovation or kitchen remodel. These big changes can greatly boost tenant satisfaction.
Remember to balance upgrades with your budget. Focus on changes that add the most value for tenants while being cost-effective for you.
Improve the tenant’s safety.
Safety and security are key factors in keeping tenants happy. A secure home gives renters peace of mind and makes them more likely to stay long-term.
Some of the safety features you can implement in your rental property include the following.
- Install sturdy locks on all doors and windows. Use deadbolts for added protection. Consider a security system with cameras and alarms. This deters break-ins and makes tenants feel safer.
- Put up motion-sensor lights outside. They turn on when someone approaches, scaring off potential intruders. Make sure parking areas and walkways are well-lit at night.
- Trim bushes and trees near windows. This removes hiding spots for burglars. Give each tenant their own unique entry code for keyless locks. Change codes between tenancies.
You should also carefully examine the local landlord-tenant laws to ensure you’re abiding by the relevant safety codes. For instance, providing smoke and carbon monoxide detectors.
Conclusion
Tenant retention is key to running a successful rental investment business. When you can keep tenants longer, you’re able to ensure a steady cash flow of rental income and also reduce operating expenses associated with finding a new tenant. Such costs include rental marketing and tenant screening.
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Amanda Rose is a seasoned landlord with 13+ years of expertise in overseeing diverse properties. Her adept management spans single and family homes, along with multi-family apartments and condos, across Wyoming and South Dakota. Her commitment and proficiency have cemented her status as a thriving property management professional.
She is a member of the following organizations: Wyoming Landlord’s Association, National Association of Residential Property Managers (NARPM), Wyoming Apartment Association, South Dakota Multi-Housing Association (SDMHA), and South Dakota Landlord Association (SDLA).