Creative Strategies to Boost Tenant Retention

3/7/2024 (Permalink)

Happy tenants

Creative Strategies to Boost Tenant Retention

Tenant retention is one of the keys to maintaining cash flow at a rental property. Vacancy doesn't just harm landlords by making a unit unprofitable for every month it remains empty. Chronic rental vacancies also cost landlords because they require them to spend time and money on marketing and tenant screening. This article looks at the best ways to improve tenant retention.

1. Create a Safe Setting

Safety has never been a bigger priority among tenants. Unfortunately, many rental properties leave tenants feeling vulnerable. Some ways to make tenants feel safe include:

1. Having surveillance cameras in place in strategic public areas of a property.
2. Upgrading locks and deadbolts with the latest technology.
3. Having visitor protocols in place to prevent entry to tenant-only zones of a property.
4. Having generators standing by for power outages.
5. Having plans in place for weather responses or evacuations.
6. Hiring security guards for larger complexes.
7. Making sure that all doorbells and call boxes are in working order.

A property owner can also consider having annual "town hall" meetings that address safety concerns among the tenant community. This allows tenants to voice their opinions about how you can make them feel safer. After all, nobody sees the potential for safety breaches like the people living on the property daily. Even landlords who don't have formal meetings can consider opening a special email account or hotline that can be used to voice safety concerns.

2. Keep Rent Consistent

It's unavoidable that landlords need to increase rents occasionally to keep up with expenses. However, tenants can smell opportunistic landlords a mile away. Play the long game by only making incremental rental increases when necessary. Even tenants who can afford increased rates will often move out of spite or anger when they feel they are being taken advantage of by landlords who are raising prices just because they can. Before deciding about a rent increase, it's important to analyze the potential for increased revenue against the losses if even just 5% of tenants decide not to renew in response.

3. Incentive Loyalty

There are some easy things landlords can do for their tenants that will keep them in their apartments longer. One painless way to improve tenant retention is to offer to report on-time rental payments to credit bureaus to help tenants build up a positive credit history. This kind gesture can secure a dependable tenant for several years while they attempt to repair less-than-great credit.

Another great way to lock tenants in is to offer discounts when they renew by a certain deadline. As a lease comes to an end, a tenant may begin looking around the area to see what their options are. By giving a tenant a letter letting them know they can save a specific amount by renewing by a certain deadline, you're applying pressure to renew quickly in the kindest way possible! Renewal discounts help tenants feel like they are getting financial benefits. For landlords who feel apprehensive about losing income by offering discounts, it's important to remember that just one month of vacancy for a unit can more than wipe away any potential earnings you'd make at the higher rate.

4. Be Your Own Quality Inspector

Many long-time renters are so used to "chasing around" landlords to get repairs done that they consider it a breath of fresh air when a property owner takes a proactive approach to maintaining units. Create a calendar for routine inspections that allows you to find maintenance issues before they become big problems. In addition to providing tenants with a better quality of life, this approach also saves you money in the long run by fixing wear and tear, minor leaks, busted appliances, and other common issues before they become expensive problems.

Even more important than the material benefit of staying ahead of repairs is the fact that being concerned about a tenant's living space builds trust. This is especially true when it comes to repairing structural issues or managing mold remediation. In addition to turning off tenants, visible signs of damage and mold cause legal consequences for a property owner.

5. Train Your Staff in Customer Service

It's far too common for property managers and their staff to act as though they are doing tenants "a favor" every time they interact with them. The truth is that responding to maintenance requests and handling safety concerns are far from favors. These tasks simply represent the property owner upholding their end of the contract! A tenant is far more likely to stay in a rental when they feel like they are receiving good customer service instead of constantly battling just to get what they are legally entitled to through their lease agreement. Some ways to prioritize customer service in the tenant experience include:

1. Providing specific appointments for scheduled maintenance instead of broad windows.
2. Ensuring that maintenance staff members always knock before entering instead of merely using their keys to get into a unit.
3. Providing friendly reminders about new rules or protocol updates in writing.
4. Keeping office hours that allow tenants to speak with a representative in person.

The importance of simply being heard regarding tenant retention cannot be overstated! While the staff member on duty may not always be able to provide a fast solution for every tenant issue, they can at least assure that the matter will be handled. Remember that a rental is never just a rental to a tenant. While they may not own a unit, the need to feel safe and comfortable in their home can bring strong feelings to the surface.

6. Remember Birthdays

There's a reason why people who deal in sales routinely send gifts to their clients and leads. These gestures create a connection. How does that translate for property owners and tenants? One simple way to ensure every tenant feels appreciated is to send them a card on their birthday. You can also consider sending a gift card. This simple gesture can be a great way to strengthen the tenant-landlord relationship by making each tenant feel like more than just an anonymous name on a lease.

7. Create a Sense of Community

Liking your neighbors is a great reason not to move. That's why one fun way to create happy tenants is to host community events. Movie nights, barbeques, pool parties, and other planned events that use your property's amenities are perfect for socializing. If you have a large enough tenant population, it's also worth considering offering ongoing events throughout the month as part of a robust "lifestyle" calendar. Some options might include workout classes, book clubs, dance classes, and skill-building workshops.

Make Your Property a Place People Want to Call Home

The bottom line is that your rental property needs to be the place that people want to return to at the end of the day if your goal is to improve tenant retention. Retaining tenants comes down to creating an environment that's accommodating and safe. If you're struggling with high tenant turnover because your property has earned a reputation for poor upkeep due to visible or odorous mold, it's time to take action. Contact SERVPRO® mold services today to get your property on track to becoming a place tenants are proud to live.