The biggest profit killer isn't a plumbing bill. It's a vacant unit.

Cleveland, Ohio
Managing Your Property
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The biggest profit killer isn't a plumbing bill. It's a vacant unit.

Mario Benavidez
Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes

Hey BP fam,

Turnover absolutely destroys cash flow. You can run the numbers all day, but if a unit sits empty for a month, it wipes out a huge chunk of your annual ROI.

So, what is the secret to keeping great tenants for 3-5 years? Fix things fast.

When tenants have to chase a landlord for a week just to get a running toilet looked at, they immediately start planning their exit strategy. The real "secret sauce" for high retention isn't a fancy gift basket at move-in; it’s repair speed.

Here is what actually moves the needle on keeping people in your units:

  • Frictionless Reporting: Tenants need a way to submit requests easily, even if it's 2 AM. Whether you use property management software or a dedicated system, making it easy to report issues prevents small leaks from becoming massive headaches.
  • Vendor Leverage: Building strong relationships with your plumbers and handymen is critical. When you give vendors consistent work and pay them on time, they prioritize your calls.
  • Mindset Shift: Stop looking at maintenance as just an expense. Maintenance is a retention strategy. Fast repairs equal happy tenants, and happy tenants equal renewed leases.

Question for the group: What’s the longest you’ve ever had a single tenant stay in one of your properties? Let’s hear some success stories!

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
8mo

Two things we do to reduce turnover is lower, conservative, rent increases, and communication touch points with our tenants. The property may slide below market rate but who cares?? Eliminating turnover, keeping a quality tenant for longer, and getting appreciation are the real wealth builders; not squeezing every dime out of tenants. 

Communication with the tenant is so important. Not when they complain about a problem but BEFORE they tell you. A text asking if they have any problems. A friendly reminder to replace the HVAC filter. These touch points have helped us improve our PM and our tenants really appreciate it. This directly ties into inspections which every tenant should be expecting on a yearly basis if not every 6 months.

To answer your question the longest tenant we have had is 6 years and counting. She's a nice person and takes pretty good care of our property so we're blessed. 

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    8mo

    Two things we do to reduce turnover is lower, conservative, rent increases, and communication touch points with our tenants. The property may slide below market rate but who cares?? Eliminating turnover, keeping a quality tenant for longer, and getting appreciation are the real wealth builders; not squeezing every dime out of tenants. 

    Communication with the tenant is so important. Not when they complain about a problem but BEFORE they tell you. A text asking if they have any problems. A friendly reminder to replace the HVAC filter. These touch points have helped us improve our PM and our tenants really appreciate it. This directly ties into inspections which every tenant should be expecting on a yearly basis if not every 6 months.

    To answer your question the longest tenant we have had is 6 years and counting. She's a nice person and takes pretty good care of our property so we're blessed. 

    1Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    8mo

    Well, there's two ways to look at retention. 

    One, that as a licensed PM I saw quite often with new Clients, is to move a Tenant into a marginally prepared unit, and let them reside there (I hesitate to use the term "live there") without bothering them for, in one case, 26 years. Hoarding issues, significant leak issues, grease soaked draperies dangerously near the stovetop, windows inoperable, electrical panel hidden behind mounds of stored items, and, ultimately, resulting in a costly, formal, eviction process, followed by a full gut and reno including the grounds.

    Or, you prep to market and attract the top Tenants for the price tier your property sits in, clearly communicating to them that this is a business, and these are the expectations we have for you; moving them in with a well documented process to a fully functioning, attractive, and clean unit with modern finishes; it is inspected annually and any "repair" or "preventative" issues are addressed promptly, as are the rare service calls; rent rates are reviewed each year immediately after inspecting the unit, and decisions are made, notices sent out, either "no change" or change based on actual comps, or, occasionally, Non-Renewal. With this process, Tenants respect the businesslike manner and responsiveness, and remain in units for an average (across a 150 average annual unit count) of over 4 years, with numerous exceptional Tenants remaining over 10 years. I would add, there were only 2 formal evictions over the last 10 years, and 3 or 4 cases where the Tenants ran into financial trouble, and discussed with me. One remained on a plan due to the particulars, the others voluntarily vacated, paying rent to the last day of occupancy, and left the units clean and free of rubbish.

    Responsiveness IS key, both in message handling and service calls, but so is proper Rental Prep and Preventative Maintenance, which both dramatically minimize service calls and repeat repairs.

    0Reply
  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 603 posts · 352 votes
    8mo

    Strong post — retention is usually won or lost in the small operational details.

    Fast maintenance absolutely matters, but I’d add that predictability is just as important as speed. Tenants can tolerate a repair taking a few days. What they don’t tolerate well is silence or uncertainty.

    A few things that tend to drive long stays:

    • Clear expectations on response times from day one
    • Consistent enforcement of lease terms (no surprises)
    • Preventive maintenance before things break
    • Professional communication, even during disagreements

    In my experience, the longest tenancies usually happen when tenants feel two things: issues get handled, and the rules are applied fairly across the board.

    Speed keeps them satisfied. Consistency keeps them secure.

    The combination is what really protects ROI.

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    7mo

    Copy the "Guest" concept from STR.

    We now internally call tenants => "Guest Tenants".
    - If anyone has a better name, please let us know!

    Changing our approach to everything we reasonably can to promote this concept for better retention.

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    1Reply
    • Richard F.
      Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
      7mo
      Quote from @Drew Sygit:

      Copy the "Guest" concept from STR.

      We now internally call tenants => "Guest Tenants".
      - If anyone has a better name, please let us know!

      Changing our approach to everything we reasonably can to promote this concept for better retention.

      I have to disagree on this one. Tenants have clear responsibilities, in a two way, contractual relationship. Guests, OTOH, naturally have higher expectations and demands. A prompt, professional, businesslike response will satisfy good Tenants. The "E" factor (entitlement) with Tenants is high enough as it is.

       
      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
      7mo
      Quote from @Richard F.:
      Quote from @Drew Sygit:

      Copy the "Guest" concept from STR.

      We now internally call tenants => "Guest Tenants".
      - If anyone has a better name, please let us know!

      Changing our approach to everything we reasonably can to promote this concept for better retention.

      I have to disagree on this one. Tenants have clear responsibilities, in a two way, contractual relationship. Guests, OTOH, naturally have higher expectations and demands. A prompt, professional, businesslike response will satisfy good Tenants. The "E" factor (entitlement) with Tenants is high enough as it is.

       

      Mostly agree:)

      What would you do differently for a 12-month tenant vs a 12-year tenant?

      [email protected]248-209-6824
      Logical Property Management4.9469 Reviews
      WebsiteView Page
      0Reply
    • Richard F.
      Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
      7mo
      Quote from @Drew Sygit:
      Quote from @Richard F.:
      Quote from @Drew Sygit:

      Copy the "Guest" concept from STR.

      We now internally call tenants => "Guest Tenants".
      - If anyone has a better name, please let us know!

      Changing our approach to everything we reasonably can to promote this concept for better retention.

      I have to disagree on this one. Tenants have clear responsibilities, in a two way, contractual relationship. Guests, OTOH, naturally have higher expectations and demands. A prompt, professional, businesslike response will satisfy good Tenants. The "E" factor (entitlement) with Tenants is high enough as it is.

       

      Mostly agree:)

      What would you do differently for a 12-month tenant vs a 12-year tenant?


      Very long term Tenants that I have placed, really they only get a little more flexibility if a temporary situation arises, such as major health or death issues within the family. For certain properties I would allow them to paint or paper to some extent, or let them pitch in if they wanted to upgrade an appliance. In general, I never used an early termination penalty, beyond what the law allows here, which is holding the Tenant responsible for the period of vacancy until a qualified replacement takes occupancy. For longer term Tenants, I would let them vacate with shorter notice and only pro-rated rent to last day of possession, assuming they were current. Actually, even shorter term Tenants that ran into financial or other difficulties and came to me to ask how they could break the agreement, I would give them that same courtesy. It is much cheaper, and less painful, than eviction, cash for keys, or suffering a temper tantrum from someone who's back is up against the wall. 

      Regardless of how long a Tenant was with us, they still got the standard annual inspection and rent review. If housekeeping slipped, they would get a notice and follow-up. We always were responsive and easy to communicate with, but only by email or office phone. (Owners/Contractors also had our Cell phone numbers.) I had a couple Tenants that aged significantly, transitioned to fixed income with health issues and needed some "accommodations". We had (with Owner approval) grab bars installed, partly to ensure they were properly done, but also to prevent concerns of the Tenant over the potential cost. One other case, was someone that was losing their sight. They requested we paint the stairs for better contrast to prevent a misstep. 

      One of the biggest reno projects involved nearly a dozen SFH's with mostly very long term Tenants. We performed these, more or less, two at a time, but overlapping, by first moving out Tenants that were not staying (whether by our choice or theirs) and accepting the pre-determined new rates and terms; then moving long term "keepers" either temporarily or permanently at their choice, into a finished reno until their original unit was completed, when they could return. We provided a small cash "moving" fund as a courtesy, and all worked out well for everyone. The final units finished went on the open market and quickly filled. The long term Tenants had a two year schedule to reach the market rate, which worked out perfectly.

      0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    7mo

    I disagree....kinda. Of course the ideal situation would be to find the 'perfect tenant' and keep them forever.

    But looking at the long-term big picture, a couple or even a few months of lost rent are a minor occurrence when compared with stress/damages/lost time/etc.

    Look at a vacancy as a chance to a) upgrade your property, and b) find a better tenant. 10 years from now, you will remember it as a good thing (if you remember it at all)

    Just my $.02.....

    0Reply
  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    7mo

    The best way to keep tenants and not lower your rent is to buy where people actually want to live and not because a property is cheap.

    0Reply
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