How to Improve Your Resident Retention Rate
Introduction: What is Resident Retention?
Tenants are a population that, on average, move every two years. If a landlord wants to have a good relationship with their tenants, they need to make sure that the property is well-maintained and has amenities that appeal to tenants.
Resident retention is the process of keeping a renter in a rental property. A renter retention rate measures how many renters stay in a rental property after their lease expires or if they are evicted. It is also called “turnover rate” or “renter turnover”.
Tenant retention is done by keeping the renters happy and satisfied with their living condition. This can be done by providing them with a safe and comfortable living environment, making sure that they have access to all the amenities that they need and listening to their feedback.
Below are 5 strategies to increase resident retention. If you are managing your own property, you may want to consider hiring a property manager.
Strategy 1: Ask them.
This may seem simplistic, but simply asking your renters about their experience can do wonders for retention and give you information about how to improve your investment property across the board.
The easiest way to ask is with a simple survey. This survey becomes a great source of feedback for you to understand if you are meeting your customers’ needs. The survey should be designed in such a way that it can be completed quickly and easily by the tenant. It should also have an open-ended question so they can provide detailed feedback on what they have liked and disliked about the rental experience.
Strategy 2: Benefits and Recognition Programs for Great Tenants.
There’s a whole list of Incentives you can offer to renters to keep them happy.
Here are a few benefits that if offered, may increase the number of renters interested in signing up for your property:
-Offer amenities that will make the resident feel at home, such as a washer and dryer in their unit or free wifi.
-Make sure that your maintenance issues are handled quickly when there are any issues in the space
-Offer rent specials or discounts on utilities like electricity, water, and garbage removal if they agree to sign up for automatic payments online or sign a longer lease agreement.
Strategy 3: Be Proactive with Rent Renewals
You want to let your tenant know well in advance if you’re interested in renewing their lease with them.
Asking your tenant if they would like to renew their lease in advance will help you plan ahead and ensure that your property is fully leased.This early notification will give you more time to start thinking about your plans and potentially give you more advance notice.
If your current tenant is considering moving, there are ways to incentivize them to stay longer. Consider a rent credit of $500, for example, if they renew their lease. Ask them about any major concerns they may have and see how you can help. You will have a better landlord-tenant relationship with clearer communication, which greatly increases the chances that your tenant will open up and reveal any other incentives that they may find most meaningful.
Strategy 4. Amenities
What makes a resident like their rental?
It’s important to know what amenities are important to renters. Open floor plans, fun outdoor spaces, and high speed internet are becoming more popular.
Renters care more and more about the quality of their lifestyle. They want a place to feel like their own. So if you can create an environment that they are proud of, they will treat it with much more respect. Create spaces they can make their own.
Strategy 5. Simply Be a good Landlord
Do not underestimate the importance of being approachable when it comes to tenants. Not only does it help people to feel more at home, but renting from you feels less like a business transaction and more like a good idea. You will be able to retain tenants better when they see that you’re enthusiastic about your work.
Be timely with your responses and make it easy for the tenant within your property to contact you. Maintaining open communication can reduce misunderstandings, and make it more likely that they will want to stay in your property.
The more that your propertyt feels like their home, the longer a good tenant will stay. Being cooperative shows the level of respect you have for your tenants which will make them more likely to respect you back. This will also create a better living environment for everyone involved.
Conclusion & Recap
It may take some upfront work to increase your renter retention, but it goes a long way. An important thing to remember is that these strategies will not only make your current tenants stay longer because they are happy, but it also turns your residents into raving fans who will send plenty of quality referrals your way. If this all feels a little daunting, you can always consider hiring a property manager to manage the property so you can focus on retention. We have 7 tips for choosing a Property Manager should you decide to go that route.