3 Things You Can Do to Retain Tenants for the Long Run - What to Know
As a landlord, one of the most critical tasks you have as part of your property management is to figure out ways to retain tenants for longer. You’re probably aware that vacancy equals lost money. As such, you might be pressured to sign any new tenants quickly and without exerting any effort into doing research or background checks. Unfortunately, this puts you at risk of ending up with a hellish tenant that’ll end up being nothing but a headache. Instead, focus your efforts on finding and retaining good tenants instead of quickly renting out your property to lousy ones.
Here are some things you can do to retain good tenants:
1. Offer a bonus if they decide to renew the lease
There are many reasons a tenant could leave your rental. It could be because they switched jobs, or maybe their lease has expired and they don’t want to renew. While the final decision of staying or leaving is ultimately up to them, you still have a part to play in their decision-making.
What part is that? Well, you can incentivize them to stay. For example, you can offer them a bonus when you renew the lease. For example, if they decide to stay for a year more, you can offer to install a flat-screen TV or a kitchen appliance that will make their lives more comfortable. Not only will this be beneficial for the tenant if they choose to stay, but it will also benefit you, as you’ll get to keep a tenant for another one or two years.
2. Award good behavior
If you’ve observed that your tenants are excellent tenants who put in the effort to pay the rent on time and keep the property clean, you should reward them in one way or another. Rewards can be anything really, but a good reward is one that benefits both you and the tenant.
A great example of a reward would be to upgrade the property itself, as not only will the tenant directly benefit from it, but you’ll be able to offer the upgraded property to new tenants as well. This can come in the form of replacing an old appliance, such as a fridge or washing machine, or installing something new, such as a shower water heater.
3. Set up a referral program
An excellent way to not only maintain long-term tenants but to attract new tenants for vacant rentals is to set up a referral program. With a referral program up and running, you motivate current tenants to bring in friends and family to rent your place as there’s a bonus to be gained in doing so.
What kind of rewards can you offer in a referral program? Well, some examples can be full coverage of utility bills within the first month or two, covering the cost of moving, or providing allowances for public transportation. Not to mention, once their friends or family have moved in, it’s unlikely that the current tenant will want to move out.
As you can see, part of property management isn't merely to attract new tenants, but to put the effort into retaining good ones, making sure that they continue to stay at your place for the long term. Not only are good tenants an excellent source of consistent income for you, but having your rentals filled means that you don’t have to worry too much about nitty-gritty details such as advertising and the like either.
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