Tenant Retention Strategies
While the situation with coronavirus continues, it causes real estate investors to experience higher vacancy rates, lower rental prices, and rent payment delays. That's why many investors are starting to change their lease and retention strategies, where they use new and updated leases to retain existing residents. Developing a solid tenant retention strategy will require you to see tenant's point of view and taking into account the full value of what you are offering them.
One of the simplest strategies is to communicate with tenants simply and honestly. The tenant should not wait for several days to get a response from an owner or property manager and the welcome package should indicate several ways in which they can contact you. Also, make sure to train your existing property manager to respond quickly and clearly to tenant inquiries or questions, and monitor tenants to ensure that their requests are met every time.
Develop a Sense of Community.
Residents are more likely to renew leases when they feel a sense of community, however, many feel isolated and cut off from their community. And to make sure that your tenants continue to feel that they are part of that community may require you to find some creative solutions. Doing something to support your residents, like offering tenants to buy groceries and cleaning supplies for them will increase their level of satisfaction and happiness and, in turn, increase the likelihood that they will stay in your property much longer.
Support Your Tenants.
This is a great way that will help to reduce the stress for your tenant. Or to ease the situation, you can provide your residents with a list of financial resources to help them get through this difficult time. Another thing, it would also be a good idea to start revising your late payment and renewal policies. Gather ideas for what type of gift card you should buy through property management software. This tenant retention effort is one of the simplest processes that can truly improve the quality of living for your tenant, even if it is just for a few hours, people love to be happy.
Offer Flexible Payments.
In addition to changing your late payment and renewal policies, consider flexible payment and rental options, If your tenant is unable to pay rent at this time, try talking to him to understand his personal situation and ask for documentation regarding his difficulties. Write a new contract with the resident with a payment plan that averages the missed rent over the remainder of the lease. A thing to remember, be aware of the number of leases moving from month to month and make sure your community isn't taking too much short-term risk.
Maintenance and Repairs.
Not many tenants are likely to renew their lease if it takes days or weeks to fix minor issues with the property. Continuing to handle maintenance and repairs successfully is another great way to increase tenant satisfaction and retention. When tenants notice that you are responding promptly to their service and repair requests and even go beyond that by providing ongoing services, it shows them that you care about property and people who are living or working there. This strategy will also help you to maintain the good condition of the property.
Incentive Programs For Lease Renewals.
Giving your tenant a bonus when they decide to renew their lease is a good idea also. You can offer things like small cash bonuses or gift cards to local shops or restaurants that will not cost you a lot but can go a long way for your tenants and help them make renewal decisions. Another option to consider is to let them choose from a list of pre-approved property upgrades such as new appliances, floors, paint.
A new retention strategy is absolutely necessary for all real estate investors who want to minimize their vacancies, reduce expenses, and maximize their profits. And these are just a few, very simple and inexpensive strategies that will help you to keep your tenants satisfied and renting from you for a long time.