Ways to Improve Tenant Retention Rates

If you are a landlord or property owner than you know that one of the most expensive and frustrating parts of the rental business is tenant turnover. With that in mind trying to find ways to improve tenant retention rates is always important. Finding a great tenant will always take work but keeping them around requires just as much, if not a little bit more.

With that in mind alongside the experts at Innovative Properties we have put together our top 10 ways to improve tenant retention rates.

1. Screen All Tenants

If you do not start with a qualified and quality tenant than retaining that person will be the least of your worries. A screening is the most important part of the rental process and has a measurable impact on the potential turnover rate. In addition to income, credit, and criminal background verifications, requesting and following up with former landlord references is critical.

Some questions to consider asking references include:

• Were rent payments paid on time and in full?
• What was the monthly rental rate?
• Describe how the tenant maintained the property
• How did the tenant communicate with you?
• Would you rent to this tenant again?

2. Make Maintenance a Priority

Keeping up with maintenance repair requests is essential for any rental business. Even with that being proactive in scheduling annual and routine service for major systems in the property goes a long way to keeping those dreaded emergency repairs away. Outside of just keeping your valuable investment in tip-top shape, regular maintenance is one of the best ways to boost tenant retention. When you care for the property you are showing the tenant you care about their experience as well.

3. Offer Lease Renewal Incentives

The end of a current lease agreement is a critical time for property owners. Your tenant is weighing the option of whether or not to stay after all. While things like job changes are outside of your control, it is still a good idea to put your best foot forward. An example would be to partner with a local gym or café to offer special promotions or deals to tenants. Another great option is offering a monetary incentive for renewing, such as a discount for the renewal month’s rent.

4. Keep Rental Rate Increases Fair

Profits are essential for any rental property business. However, being overly aggressive with rental rates and increases will likely drive tenants away. While tenants of course expect periodic increases, maintaining scale is key.

Instead of increasing the rate at every renewal, research local comps and ensure your property does not outpace similar rentals. Consider keeping the rate just under market rates and only requesting smaller increases. This means that cost-savvy tenants will be hard-pressed to find a better deal and because of this will be more willing to continue the current lease.

5. Be Professional but Understanding

If this past year has taught us anything it is that extreme circumstances beyond our control can happen. Keeping that in mind it is always necessary to be understanding when certain circumstances arise. For example, if an otherwise great tenant starts to become late or misses payments, reach out and check in. If they have possibly lost a job or just fallen on some bad times, make an effort to work with them to find a solution or alternative payment plan.

In working together your tenant will see how much you care, and is more than likely to stay at your property.

6. Track the Pulse of the Local Market

As a landlord, understanding and keeping track of local rental rates is just one part of the process for retaining tenants. One of the best ways to do this is to monitor amenities and upgrades in the local market alongside the price. If your property is outdated and has a higher cost than one across the street, why would a tenant stay with you? So always try to keep this in mind from the renter’s point of view.

7. Provide Top Notch Customer Service

One of the best ways to increase tenant retention is through responsive and honest communication. Going beyond processing maintenance requests and responding to inquiries, you must ensure tenants have all the information they need. This starts at move-in with a comprehensive welcome packet outlining procedures, contact information, and any extra tips.

When you do have an issue make sure to respond as soon as possible and within the same business day. If you do have any maintenance repairs needed, make sure to keep the tenant informed of the progress, so they know it is being handled properly. Establishing a line of communication and trust is vital to increasing retention rates.

8. Take Time to Call

In the rental industry, many communications are best sent in writing, and many require it by law. However, when important notices or emergency reminders go out, consider picking up the phone as well. In doing this you are allowing the tenant to ask questions or to help make sure they have all the information they need. This is not necessary but will go along way with your tenant.

9. Send an Exit Survey

Even with so many positive steps taken there will be a day when your tenant does move out. When that happens, it is a good opportunity to send an exit survey to help improve your business. Here are a few examples of exit survey questions:

• Why have you decided to vacate?
• What would you have liked to see from the property manager?
• Were you satisfied with the property? Why or why not?
• Is there anything that could have enticed you to stay?

10. Hire a Professional Property Manager

Having a professional property manager on your side is one of the best ways to not just increase tenant retention but also ensure top-notch customer service for every tenant. Having a partner such as Innovative Properties is key to ensuring your tenants are happy and have their needs taken care of. Are you looking for assistance with your rental property? Give us a call today. We provide services tailored to fit your needs with over 30 years of experience.

About Innovative Properties

Innovative Properties is a property management company in Anne Arundel County focused on helping residential, commercial, & HOA property clients. With over 30 years of experience in property management and leasing, we can help you rent, sell, or buy your next property in Anne Arundel County.