Property managers should know how to retain good tenants to ensure a continuous source of investment. Doing so will also save them significant marketing costs to find new tenants. Great tenants protect property owners from several other issues. These include:
Cleaning the property
Going through the tenant screening process again
Changing the locks
Making small repairs
Studies suggest that it is three times more expensive to find new tenants than to renew the lease with existing ones. So, property owners and managers should do everything possible to retain great tenants.
If your tenants dread rent day due to the stressful payment process, it will be difficult for them to want to remain on your property. To make rent day as stress-free as possible, use digital payment tools that allow mobile transactions.
That will make it easy for tenants to make payments on their terms. You will not need to knock on their door or call them while stressing them out. A property management company can help simplify your payment process.
You should establish a good relationship with your tenants from the start. Effective communication and trust will ensure things proceed smoothly while occasionally allowing for certain leniencies.
Your tenants will be more accepting and patient if they believe you do the right thing most of the time and vice-versa. Your tenant may not be someone you would typically get along with, but it will pay off if you put in the effort to establish a relationship.
Consider using thoughtful gestures like a welcome hamper and organize a visit in the first month if your tenant obliges. That will help establish rapport and provide a chance to inspect your property.
You must be responsive and organized. Tenants like it when property managers or owners take care of issues promptly. So, you should respond to your tenants as soon as possible to alleviate stress and conflict.
That will make them feel important and cared for by the property manager. It would be best if you were also proactive with communications to ensure your tenants feel they are in the loop and do not need to chase you up.
One of the best ways to retain great tenants is to recognize them as valued tenants. You should make them feel appreciated by going the extra mile. For example, send them a birthday or Christmas card every year.
Remember that your tenants are more than your source of income. They are human. So, it would be best if you built a fantastic tenancy based on mutual respect. Do not crack the whip immediately if your tenants are late on rent once a year. Remember that they are great tenants most of the time.
Using a reward system will encourage timely rent payments and good behavior. It will also help retain great tenants. For example, offer an incentive for renewal before the lease expiry if your best tenants are on the fence.
Do not waste time and money trying to find new tenants. Instead, focus on retaining your existing tenants with the strategies discussed above.
For more property management tips, visit Prime Property Group at our Oakland or Sacramento, California office. Call (510) 225-0470 or (916) 822-9655 to schedule an appointment today.