How To Reduce Tenant Turnover in Your Rental Properties
Tenant turnover is one of the most concerning issues for property managers in the Triangle area. Lost revenue due to tenant turnover can have a devastating impact on your community, and it’s important to take stock of these losses each year and identify opportunities for improvement moving forward. By taking the time to optimize your property to meet residents’ needs, you’ll be better able to retain your tenants and, in turn, prevent turnover-related financial losses.
10 Ways To Reduce Tenant Turnover at Your Raleigh, NC Property
Most landlords understand that the primary reason that tenants leave is due to a major life change event, such as a new job or growing family. But there are other reasons why tenants leave that are well within the control of their property managers. Today’s residents demand modern amenities, affordable rental rates, and quality relationships with their landlords. To meet these needs, property managers should consider the following to bolster tenant retention in the new year:
1. Strengthen Tenant Screening
Property managers tend to search for quality character and income in their tenants and hope for the best. But implementing a strong tenant background screening process is critical to ensuring the residents in your community are a good fit. Performing a thorough background check can help you identify problems early so you can prevent premature vacancy at your property.
2. Avoid Rent Increases
While raising rent to compensate for rising inflation is something every landlord must contend with, rent increases that are too high can cause a mass exodus from your community. A sudden rent increase could cause tenants to justify leaving when they had not considered it before. If you need to increase rent rates, be sure to have a pipeline of tenants who are prepared to pay the new price.
3. Ensure Prompt Responses
Tenants are more likely to leave properties with landlords that fail to address their concerns promptly. Not only that, but today’s tenants demand a certain degree of convenience when it comes to the methods through which they may contact their property managers. Texting, email, and phone call options should be made available whenever possible. Make every effort to provide a personalized response to each tenant’s concern promptly.
4. Make Continuous Improvements
As a property manager, it’s your responsibility to ensure that each unit in your building is kept in good condition. Identify opportunities to bring in new amenities — such as a bike storage room or package holding area — to prevent tenants from leaving for properties that offer these conveniences. If you let your property go, tenants will notice and seek out communities that care more about the space they provide for their residents.
5. Make Wise Investments
Tenants are more inclined to live in nice neighborhoods with rising employment and good transit systems. When investing in properties in the Cary, NC, region, be sure to choose buildings in areas that meet these criteria, as these communities have a higher demand for units. As a result, vacancies are much rarer, allowing for a stronger return on your investment as tenants remain for years to come.
6. Offer Tenant Incentives
Consider adding incentives for tenants willing to sign a longer contract. For instance, you could offer locked-in rates for two years to reward tenants for their loyalty in staying with your community. Alternatively, you could reward tenants with a small gift or discount on local goods/services for those who decide to stay when it comes time to renew their lease. You could even offer a small reward to tenants who pay their rent on time — the options are virtually endless!
7. Modernize Your Property
Choose an all-in-one property management software solution to streamline processes and communications when dealing with tenant concerns. Modernizing your property in this way will show tenants that you’re actively seeking out ways to make their lives and communication with you easier. Not only will your residents appreciate the effort, but you’ll enjoy higher efficiencies in keeping track of tenant requests and concerns across your property.
8. Build Better Relationships
It’s important not to view tenants as sources of income but rather as your friends and neighbors. Making an effort to get to know your tenants personally goes a long way in establishing trust and a sense of community. Drop by to say hello, bring a bottle of wine, and find ways to show your residents appreciation on a personal level.
9. Provide Open Communication
The only thing more frustrating for tenants experiencing issues within their units is poor communication from their landlords on when they can expect a solution. When HVAC or plumbing emergencies occur, it’s important to provide your tenants with an open line of communication so you can reassure them that their problems will be resolved in a timely manner. Be open and honest about the issue at hand, and offer temporary solutions whenever possible to show you’re willing to go the extra mile to ensure their happiness.
10. Keep in Touch
Tenants don’t often make the decision randomly to leave a community. It’s more likely that they’ve let negative feelings about their community fester until they’ve reached a breaking point that causes them to relocate. The best way to gauge your residents’ satisfaction with their surroundings is by keeping in touch with them. Tune into their frustrations and listen to their concerns to see if there’s anything within your control that you can change so they feel more comfortable staying.
Bonus Tip: Hire a Property Management Company for Your Durham, NC Community
Owning a rental property can be overwhelming, especially when preventing tenant turnover. At Block & Associates Realty, our property management company has helped landlords throughout the Raleigh, NC, region retain their tenants by offering the end-to-end management solutions they need. Allow our team to help ensure your tenants stay for the long-term by contacting us at (919) 459-6300 to request a property management quote today!