- It’s estimated that 36% of U.S. households being renters represents a large potential customer base for landlords.
- Poor communication, maintenance issues, rent increases, and poor tenant screening can lead to tenants leaving.
- Maintain the property by promptly addressing any maintenance issues.
- Offer incentives and rewards to keep tenants happy and loyal.
- Improve customer service by being friendly and helpful and addressing inquiries promptly.
As a landlord, keeping good tenants is crucial to your rental business. Nobody wants to be in an endless cycle of searching for new tenants and having a high turnover. If you lose tenants frequently, it’s time to look closely at why this is happening. Here’s a look into why you’re losing tenants and how you can retain them over time.
Number of Tenants in The U.S.
First off, you must know the size of your market. It’s estimated that 36% of the households in the U.S. are renters. These households represent a large potential customer base for your rental business. It’s always better to retain tenants than spend on getting new ones. Here are some reasons why you’re losing tenants today.
Poor or lack of communication is one of the most common reasons tenants leave. As a landlord, you must be available and responsive to your tenants’ needs. Ensure you provide your tenants with a clear way to reach you, such as an email, phone number, or portal. Always respond to your tenants’ inquiries promptly and address any concerns they might have. You may also want to establish a regular check-in schedule to stay on top of any issues before they become bigger problems.
Nobody wants to live on a property that isn’t well-maintained. As a landlord, it’s your responsibility to keep the property livable. Ignoring maintenance issues, ranging from a broken faucet to a leaking roof can quickly cause your tenants to become unhappy. When maintenance issues arise, address them immediately and professionally. Be sure to schedule any necessary repairs as quickly as possible.
Rent increases are common, but they can quickly cause tenants to leave if they’re too steep. The average rent in the country is around $1,300. As a landlord, it is essential to set a fair rent rate and ensure that any increases over time are reasonable. If you have long-term tenants paying rent on time and taking care of the property, consider offering them an incentive to stay, such as a rent freeze or a gift card.
Poor Tenant Screening
Tenant screening is essential to the rental process, and failing to do it correctly can lead to problematic tenants. Ensure you thoroughly screen potential tenants, including criminal background checks, income verification, credit checks, and rental history. You want to ensure that you rent to responsible, respectful, and financially stable tenants.
Lack of Amenities
Tenants expect basic amenities in their rental property, such as heat and hot water. But with the competition for tenants increasing, landlords need to go above and beyond to provide additional amenities, such as laundry facilities, parking, and storage. Not offering these amenities can cause tenants to exit your property for one that offers these conveniences.
Tips to Retain Tenants Over Time
Dealing with the problems above can certainly help you retain tenants. However, if you want to improve further your chances of retaining them, here are some of those ways:
Improve Your Front Lawn
Tenants don’t like living in a place they’re not proud of. Your front lawn can determine the initial impression of visitors. Make sure yours is well-maintained and looks inviting. If you don’t have the time to do this, hire a local lawn care service to help you. These services have the tools and knowledge to keep your property looking its best.
Tenants like to be rewarded for being good tenants. Consider offering incentives like rent discounts, gift cards, and other rewards. This can help keep them happy and may even encourage them to refer you to their friends or colleagues looking for a place to stay.
Improve Your Customer Service
Good customer service is essential in retaining tenants over time. Being friendly and helpful will make your tenants feel appreciated and drive loyalty toward your rental business. Ensure you promptly and professionally address their inquiries and provide timely advice on any issues they might have with the property.
Losing tenants can be a significant source of stress for landlords. Understanding why tenants are leaving and how you can retain them is essential to keeping your rental business successful. Ensure you improve communication, conduct thorough tenant screenings, provide additional amenities, and improve customer service. By following these tips, you’ll be well on retaining tenants.