A happy tenant is good news for you as the property owner.
That’s because happy tenants pay rent on time. They follow the terms of their lease agreement. They take care of your rental property and they communicate transparently.
They also renew their lease agreements.
Good tenant retention strategies lead to consistent rental income and lower turnover expenses.
Losing a good tenant hurts. Not only is it destabilizing for your rental property and your rental income, it also leads to expenses like vacancy, turnover costs, and marketing to find a new tenant.
How can you reduce those risks and keep your good tenants happy and willing to renew their lease agreements year after year?
We have some good ideas on how to master tenant retention. Having managed rental properties in southwest Florida for years, we have come up with some strategies to create positive – and profitable – rental experiences for both tenants and owners.
Be Proactive about Sharing Expectations
Moving is stressful and rarely easy. Once the showing is complete, the application has been approved, and the lease has been signed, you’ll want to make the move-in process as easy as possible for your tenants. This will go a long way towards establishing a good relationship. It will also give you the opportunity to share some of your expectations around the tenancy.
Your new residents will appreciate this.
And, while it might seem strange to be thinking about potential lease renewals as soon as your tenants move in, you’ll find that the move-in experience is how you’ll demonstrate to your tenants what the tenancy will be like for them. If you’re available and resourceful, they’ll know they can trust you. If you’re direct about what is permitted and what is prohibited, you’ll have fewer conflicts and disruptions.
Tenants will likely have questions about setting up utilities, how to use different things in the property, and what days the trash and recycling are collected. They may be looking for school resources and suggestions about the neighborhood.
Sharing your expectations is a critical part of establishing a good relationship and retaining tenants. As you’re going over the lease with your tenants, make sure you highlight important parts of it, such as:
- Rent collection policies
- Maintenance reporting procedures
- Rules and regulations around guests, parking, pets, etc.
Tenants don’t like to be surprised, and if they understand what’s important to you during the term of their lease, you’re less likely to grow frustrated and impatient with each other. Providing direction leads to tenant retention.
Make Renting from You a Convenience, Not a Struggle
Today’s tenants are looking for convenience and ease. Be the sort of rental property owner who provides things like online rental payments and online maintenance requests.
Writing out a check is not something that a lot of people are doing anymore. Your tenants will prefer the security and the simplicity of online rental payments. You can use any of the payment apps that are available, and if you’re interested in learning more about property management software systems that can support payments as well as accounting functions, we’d be happy to tell you about that.
Maintenance requests should be made in writing, too. Ask tenants to send you a text or an email with the routine repairs that are needed. They’ll appreciate not having to call you, and they’ll enjoy the ease of being detailed in their description of what’s wrong. They can even send photos.
Include Landscaping and Pest Control
Every lease agreement will have to identify who is responsible for maintaining the outside of the property. Whether you have a large yard or a small courtyard, someone will have to do the mowing and the watering.
Most residents are looking for low-maintenance living. They rent so they don’t have to worry about taking care of the landscaping. So, a good way to create an easy rental experience and an enjoyable living environment is to include landscaping in your monthly rent. Pest control should be included, too. Not only will it increase tenant retention by ensuring they don’t have to do it themselves, it preserves the value and the condition of your property.
Pet-Friendly Homes Make Tenant Retention Easier
Not everyone loves the idea of animals in their investment property, but allowing pets is a good business decision. Pets contribute to tenant retention, and that’s another great reason to provide a pet-friendly rental home.
You know it helps you find a tenant; a majority of renters in and around southwest Florida have at least one pet. So, if you don’t allow pets, you eliminate a large portion of your tenant pool. Considering pets helps you during the leasing process, and it also assists you in retaining your tenants when it’s time to renew the lease.
Who do pet-friendly properties retain tenants better?
- Pet owners know that not every rental home will allow them to move in with their dog or cat. When they find a home that does accommodate them, they’re more willing to stay in place so they don’t have to look for another pet-friendly property.
- They don’t want to pay another pet fee. If a pet-owning tenant moves to a different home every year, they have to pay a new pet fee every year. That gets expensive.
As long as you have a strong pet policy in place, renting to tenants with pets is better for your retention plans.
Responsive Maintenance is Critical to Retention
Maintenance can be expensive and it’s not always easy to get the vendors you want when you want them. The list of maintenance frustrations is long. We know that’s why a lot of owners choose professional property management; it takes away the maintenance headaches.
You have to prioritize the maintenance needs of your tenants. Otherwise, those residents will be in a hurry to leave.
Emergencies will require swift action, and you’ll need to rely on your best vendors to solve problems quickly and mitigate damage. Routine repairs should get the same sense of urgency. Don’t leave those small tasks alone. Take care of them as soon as you can because it’s better for your property and it’s also going to lead to better tenant retention.
Being slow to respond is not a good way to show tenants you care about their experience.
Communicate your maintenance procedures, and then be responsive. It will help you keep your tenants when they know that their repair requests are being heard. Even if you can’t fix something right away, let your tenants know where things stand and what you plan to do about the problem moving forward.
Incentives to Stay: Offer Improvements and Upgrades
You’re legally required to provide a home that’s well-maintained. When your concern is increasing your tenant retention, you’ll want to go beyond the minimum legal requirements. Make your rental property attractive and competitive. Help it stand out in a crowded rental market.
We always recommend upgrades and updates whenever possible, and especially when you’re negotiating a lease renewal. Rather than simply maintaining your investment property, you should also be improving it. You’ll earn more in rent, and you’ll be sure to hold onto your grateful tenants for more than a single lease period.
Some of the upgrades and updates that mean the most to good tenants include:
- Technology. Think video doorbells or smart thermostats. Keyless entry is a huge bonus. Maybe you can provide some smart home features.
- Updated floors. Vinyl, laminate, tile, and faux wood are all popular. It’s cleaner and easier to maintain than carpet.
- Energy-efficient appliances, lights, and plumbing.
- Dedicated work spaces. With more tenants working from home, this is a cost-effective improvement.
Sometimes, your tenants will make a specific request. Maybe they’ll ask for a new dishwasher or new paint. Listen to their request and consider it carefully. When it’s a cost-effective improvement, it’s likely worth doing.
Stay Competitive with Rental Increases
When you offer your tenants a new lease agreement, you will likely be raising the rent.
This can be a bit agonizing, especially when you want to keep your tenant, but we’ve found that residents are usually aware that there will be an increase. Just don’t be unreasonable. Make sure your increase is competitive.
Tenants will do their research, and they’ll know what rental homes are going for in your area. If you offer them an amount that’s slightly below market rates but still higher than what they’ve been paying in your property, they are more likely to renew the lease. If they’re having a good rental experience and your renewal amount is reasonable, they’ll stay where they are.
Southwest Florida Property Management Can Help Retain Tenants
Professionally managed properties often have higher retention rates and lower vacancy rates.
Property managers have more time. We have more resources. We can focus on the tenant experience in a way that most independent landlords cannot.
We already have the technology in place that allows for online rental payments and maintenance requests. We also understand the law and the tenant protections that are in place. You won’t have to worry about making a security deposit mistake or violating a fair housing law.
Property managers also provide better maintenance and more consistent management policies.
This matters to tenants.
Don’t lose money on constant tenant turnover. In this market, you should be holding onto your tenants for the long-term, and we can help you. Please contact us at Realty Group of Southwest Florida.
