Tenant Retention Tips For Rental Property Investors

Looking for how to get higher ROI on your rental property? The easy way is to reduce your turnovers to the lowest possible level. Tenant turnover is one of the biggest nightmares for any landlord. Turnovers mean vacancies during which you lose the monthly income while incurring expenses such as mortgage, marketing costs and maintenance and utilities. Marketing the rental unity will require time and money since you may have to hold open houses, showing the rental unit, collecting and processing rental applications, screening the applicants and many more activities. As rental property owners, there are ways you can increase tenant retention rates with your lease agreements.

Here are ways to boost your tenant retention rate for your rental property.

Know Your Market

Overpriced rental properties suffer from high vacancy rates. Regardless of your relationship with a tenant, it is vital to know your stay up to date on your market if you want to retain them. How does your pricing compare to the neighboring rental properties? How do your amenities compare to the rentals in the neighborhood? Do your research and walk to the vacant properties in your neighborhood to get firsthand information. Update your rental property or add amenities that may make your property more appealing to the tenant.

Ongoing “Dream” Improvements

Your rental property will need updating in the long-run. Many landlords only bother to update their rental property between tenancies. This should not be the case. During your semi-annual inspections, ask your renters for a dream list of improvements. Compare the different list and identify affordable and long-term updates that will add value to your rental property years to come.

Take Tenant Screening Seriously

Tenant screening is a very important activity that directly affects your rental property investment turnovers. Check for eviction reports, credit reports and criminal background on all applicants. You don’t want a tenant who hops around frequently from one rental property to another. Moreover, make sure the tenant is able to pay the rent.

Consistently and Strategically Raise Rental Property Rents

It may sound counterintuitive to raise the rent to keep your property occupied. However, even the tenants understand that the cost of living goes up year after year. Your tenants should expect an annual rental increment. However, don’t wait for a long time without raising rent then surprise your tenants with a huge rent increase.

Call When Sending Important Notices

By law, you need to send particular notices in writing. However, this does not mean you forego the need to call your renter. Before your tenant receives a hard written notice, a call from you will help establish a dialogue. Calling your tenant allows you to communicate any issues such as lease renewal options, rent hikes, and why the tenant delayed to pay rent. This is better than the tenant just receiving certified letters or taped notices.

Call Before Entering the Rental Property

In the same way, you need to call before entering a tenant’s home even after sending a written notice. Even if it is an emergency, giving them a call prior to your visit will demonstrate your respect for their privacy.

Be Responsive

One thing tenant dislike is an absentee landlord. Rental property owners should be readily available to their tenants in an emergency. Remember that this is your property and the longer a problem stays, the more damage it may cause. Moreover, it is a sign that your care for the wellbeing of your tenants and your property. Be in constant communication with the tenants even when everything is fine.

Send Holiday Cards To Your Good Tenants

To show your tenant that you care about them, send them a holiday card tailored for the holiday the tenant celebrates. Let it be a religion-specific card for your good tenant. Address the card to the family members by name to make the card look more personal.

Prune your money tree

Will you tolerate bad tenants on your rental property? Getting rid of them is the only way, to save your investment. Bad renters will cost you money in the long run and even cause your good renter to leave.  When their lease comes for renewal, send them a non-renewal notice. Get rid of bad tenants and keep good tenants if you want low maintenance costs.