The average base salary of property managers in America is just under $58,000. Given that people tend to think of property management as a source of passive income, that’s pretty impressive.
However, if you’re a property manager, you know it isn’t actually passive. A lot of work goes into finding tenants, inspecting your properties, handling maintenance issues, collecting rent, and preparing for emergencies.
Having a high tenant retention rate can take a lot of the pressure off of property management, but you may not know how to go about it.
These five tenant retention strategies will reduce turnover so you can finally have a steady stream of income.
1. Match Your Market
There’s no point in spending buckets of money on renovations and sparkling appliances if these improvements are going to raise the rent well above the average in your area. Likewise, it won’t benefit you long-term to keep the rent low for an outdated property when everything around you is modernizing.
Learn how much people are willing to pay and what level of quality and modernity they expect to see. If you’re an outlier in your neighborhood, your renters will catch on quickly and find somewhere else to live when their lease is up.
2. Screen Your Applicants Well
The average credit score in America is at an all-time high. But credit scores alone (good or bad) cannot tell you everything you need to know about a future tenant. A lot goes into a proper applicant screening and while some of it may seem excessive, it’s key to improving tenant retention.
A thorough screening requires that you check references and credit scores, perform background checks, and find out why the applicant vacated their previous living space. Knowing that a new tenant is trustworthy, timely with bills, and unlikely to vacate a property without notice is the first step toward keeping them in your rental property for many years.
3. Take Maintenance Performance Seriously
Nothing is more frustrating for a tenant than a property manager who takes weeks to respond to a maintenance request.
Prioritize maintenance issues by responding as quickly as possible to requests online or over the phone. Send the necessary help within 48 hours whenever possible. The more consistently fast you are, the more your tenant will see you as reliable and responsible.
Don’t wait for tenants to reach out to you with a problem. Be proactive in determining whether you need to make improvements to your rental property. If a property is temporarily vacant or your tenants have agreed to let you make some updates to their home, get in there and make your property an even more appealing place to live.
4. Form Positive Tenant Relations
Is it time for a mid-lease inspection? Are you concerned about bugs and need to send in pest control? Go beyond leaving a notice on the door.
Even if a rental property belongs to you, it’s important to respect that your tenants have made your property their home. Be polite and courteous any time you or someone you have hired needs to enter the property.
Establish a system your tenants can rely on and give them plenty of advance notice before doing an inspection or sending a vendor to the property. This might mean an email 48 hours ahead of an inspection, a reminder phone call a week before, or even a text saying, “Don’t forget I have to come up this evening!”
If tenants have questions or complaints, make sure the person receiving that feedback is patient, kind, and helpful. This will show them that their opinions matter and increase their appreciation for the service and treatment they get in their chosen place of living.
A happy tenant will stay with you a lot longer than a tenant whose privacy and trust have been violated and whose voice is never heard!
5. Don’t Try to Increase Tenant Retention Alone
Putting a tenant retention plan into action might seem like a lot of work. But if you’re thinking, “I don’t have the time or resources to tackle all of this myself,” don’t stress!
Letting a property management company take the wheel will make being a landlord actually feel like “passive income.”
With American Home Team Realty, you won’t have to worry about things like tenant screening or maintenance calls. Let us take care of client communication, rent collection, maintenance, and more to increase tenant retention with no work on your part.
If this sounds like the load off your shoulders you’ve been wishing for, contact us today!