There’s no doubt that one of the toughest parts of owning rental properties is when you start losing your best tenants. This happens to every owner at one point or another. Thankfully, it’s possible to keep your best tenants for the long term by following the simple tips in this article.
Effective Tenant Retention Tips
Approach tenants early. In a market with vacancies in the high double digits, start lease renewal negotiations 12 to 24 months in advance.
Don’t bring in competing tenants just to earn an extra buck. In a tough market, it’s tempting to take any lease, but ignoring noncompete lease clauses can cost you a tenant, get you in a lawsuit, and undermine percentage rents.
Invest to avoid functional obsolescence. Spending on upgrades may hurt the bottom line over the short term, but improvements will pay dividends in long-term tenants.
Educate tenants and owners about what the market is doing. Market knowledge about vacancies and any new properties coming online will help keep rent negotiations realistic on both sides.
Avoid guessing games. Offer a fair deal, use comps to explain your offer, and communicate your position clearly.
Keep the decision makers happy. The boss and office manager will notice factors such as HVAC and janitorial services. It’s a lot easier to replace a poor cleaning service than a tenant.
Don’t slack on face time. It’s not enough simply to provide a lot of services to tenants. Being available in person can sway that renewal decision.
Never go on the defensive. When a tenant calls to complain, you should listen, empathize, and solve the problem. Don’t make excuses.
Treat an existing tenant the way you’d treat a new one. Take an interest in each tenant’s business and stay in touch with tenants regularly, not just when they complain or it’s time for a renewal.
Put the real estate first. If a property is well-maintained, it gives tenants a reason to stay.
About Today’s Modern Tenants
The best renters, those with high credit scores and low maintenance needs, are highly sought after in the new rental market. Renters report that they don’t mind paying a premium for a home where they feel safe and comfortable, but keeping those tenants will take more than amenities. Adding bells and whistles is just as much a dead end game as lowering the rent and no property owner will survive long without a strategy to attract and hold onto the best tenants.
Great tenants are getting harder to find and the competition is heating up to find them, even if they are not in the market for a new apartment currently. Big data and aggressive marketing techniques are the hallmarks of the emerging rental market. At the recent Apartment Rental Management conference in Miami, Kelly Maguire, an executive director at SAS, clearly laid out the future of the rental market, where owners “need to be more strategically oriented, consumer focused and be more technologically advanced.”
The new renter is older and ready to settle down a bit, according to 2012 statistics from National Multi Housing Council . For those under 30, just over half, 57 percent, are renters. That percentage increases with age. From 30-44, almost two thirds are renting at 63 percent. Those numbers jump up to 78 percent for baby boomers aged 45-64 and the really surprising number is 84 percent of seniors are now in the rental market. We can expect those to stay high or increase as the population bubble ages. The new renters are older, wiser and accustomed to being treated with respect. Here are three suggestions for making the ideal tenants feel at home.
Get Portland Oregon Property Management
Tired of losing great tenants? You’re not alone. One of the best ways to keep tenants is by hiring an experienced property management company to professionally manage your rental property for you.
At Property Management Systems we specialize in all phases of property management including: property marketing, tenant selection, tenant placement, rent collection, maintenance, customer service and more.
With our experienced team of property managers serving you, you can enjoy owning your rental property once again because we will take care of all the day-to-day responsibilities which come with owning rentals.
To learn more about the services we can offer you contact us today by calling (503) 51-3170 or click here to connect with us online.