How to Increase Tenant Retention Rates
Finding ways to increase tenant retention is one of the most important things that real estate investors can do. Keeping the old tenants is cheaper and much more profitable in the long run compared to new tenant acquisition, so take a second to think about all the efforts you've put into marketing and attracting tenants, and not working on the process to keep them long term.
While finding a good tenant takes work, maintaining it takes just as much, if not more, effort. If you feel that keeping residents satisfied can seem like a lot of work, don't hesitate to contact our property management company so we can help you to achieve those great results. Here are some of the most effective ways to increase customer retention.
COVID-19 pandemic has created many challenges for both renters and real estate investors, where a certain level of professional understanding is required. In the case where a good tenant starts paying late, maybe they lost their job or facing some tough times, try working with them to find an alternative payment plan. This will allows tenants to see how much you care about them and is essential for building a strong investor-tenant relationship and it is less hassle than finding a new tenant.
Always start by thoroughly qualifying your potential tenants, as the lack of it could lead to tenants damaging the property, late rents, and much more. The tenant screening process is the most important part of the process and has a tangible impact on potential employee turnover. Checking income, credit scores, criminal records, asking for referrals from the previous landlords, make sure to ask as much as possible, as it will help you to make a good decision before picking someone.
Everyone appreciates honest and responsive communication, that's why customer service is such an important piece when managing your property. When problems arise, make sure to respond as soon as possible and during the maintenance or repair process, keep the tenant informed of the progress of the work so that he understands that he is being treated appropriately. The right service and first-class customer service are essential to maximizing tenant retention.
Sometimes real estate investors are being too aggressive with rents and increases, where they find themselves alienating good tenants instead of encouraging them to stay. So make sure to conduct thorough research on local deals and make sure your property doesn't exceed similar rental rates, so make sure to track local rental rates is just one part of the tenant retention process.
Although in the real estate industry a lot of communication goes through the written messages as it is required by law, consider picking up the phone as well. This gives your tenants a chance to answer questions the tenant may have, or to make sure they receive all the needed information about their unit. While this step is not necessary, tenants always appreciate the personal connection that phone conversation provides.
Aside from keeping your valuable investment in top shape, regular maintenance is one of the best ways to retain your current tenants, so when a problem does arise, promptly address tenant concerns and keep them informed throughout the renovation process. Where taking care of your property maintenance issues shows the tenant that you care about their experience while living in your property.
If all of this looks like a lot of work, which it is, think about hiring a professional property management company where they will help you to increase tenant retention by providing top-notch customer service to every tenant for years to come.