10 ways you can improve tenant retention

What’s not to love about reliable tenants who pay rent on time and live at your property for many years? These can be the tenants that get you the most bang for your buck from your property, and a stable passive income.

Long-term tenants are where the money is at for investment properties. Losing tenants leaves you out of pocket for a few months’ rent, advertising costs, any property updates, and other unexpected costs that can arise from an empty property.  

If you regularly find yourself short of a tenant, you may be wondering how you can find these mystical long-term tenants. They aren’t unicorns. Most people would happily be long-term tenants. You just need to know the secret ingredient to keep them. Let’s run through that now.

1. Respond to maintenance and repair requests quickly

One of the most frustrating things for a tenant is to have a maintenance or repair issue that doesn’t get dealt with for a very long time. Fortunately, this issue is easy to fix. Show your tenants that they are appreciated by ensuring that their requests are investigated as soon as possible.

Respond to their request with an email stating what you are going to do, and if there will be any tradespeople coming to their house. Keep them updated on the timeline of the repair so they feel like they’re being kept in the loop.

2. Ask tenants how they are doing

Check in with your tenants every now and then. See how they are feeling about the house, how things are with their neighbours, and if anything is causing them discomfort. Building a positive relationship with your tenants is key to gaining a long-term tenancy. By showing that you care about your tenants’ concerns, you are more likely to develop a positive relationship.

3. Review what makes tenants happy and implement it

Ask your tenants what would make them happier in the property. This can give you an idea of what they need to stay there in the long term. While you don’t have to implement all of their suggestions, just implementing one of them could take you a long way to boosting your relationship with them.

It again comes back to showing that you care, and want them to stay at your property. They will feel secure and happier, and in return, you will have stable tenants.

4. Focus on security

Security is a must in making sure your tenant feels safe in their home. When tenants feel safe they are more likely to stay at your property for longer. Fortunately, there are a few easy changes you can make to improve safety.

Installing security screens is an easy addition. They improve security without disrupting airflow or line of sight outside. Security screens make a huge difference in ensuring that a property is difficult to break into.

Other changes you could make include ensuring the lighting inside and outside of the property is well laid out and maintained. Replace any broken locks, broken pet doors, or other potential security flaws as soon as possible.

5. Add amenities where possible

Additional small comforts in a home can make a big difference to a tenant’s desire to stay. Items like air-conditioning, a dishwasher, and more are traditional amenities that you can add. However, in the digital age, some other cool amenities will make a big difference.

You can go for smart home options like smart locks, smart temperature control, video doorbells, and more. These can add a touch of modern convenience. But one simple change that many landlords miss is a digital tenant experience. Many great digital property management apps make it easier for tenants to manage paying rent, submitting repair requests, and more.

6. Be polite, courteous and professional

The way you interact with your tenant can mean all the difference in retaining them for the long term. By being polite, courteous and professional in all conversations with your tenant the relationship is more likely to remain harmonious.

Maintaining polite communication during difficult conversations, such as rent increases or accidental damage, will ensure a successful outcome. Accidents happen, even with great tenants, so keeping things professional will help solve the problem and leave everyone feeling happy.

7. Reward good tenants

When you have had a reliable tenant for a while you should show your appreciation with a reward. A thoughtful thank-you gift can go a long way to making your tenant feel appreciated. You could also use a gift as an incentive for the tenant to renew the lease.

Some gift ideas include:

• Discounts on the rent
• Gift cards for local restaurants
• Property upgrades, like new paint or appliances.

If you don’t have the budget for larger gifts, a smaller gift card or handwritten thank you card will show your appreciation. This can go a long way to improving the relationship between you and your tenant.

8. Be strategic when raising the rent

Rent increases can often be the deciding factor in whether your tenant renews the lease or not. If the rent is raised too high too quickly it can be shocking to the tenant and can be all they need to look elsewhere. So, it is critical to be strategic with rent increases.

Keep an eye on competing properties to keep your rent competitive but fair. Consider rewarding long-term tenants with greater rent stability to increase their likelihood of staying. If you do need to raise rents, try a slower increase over a long period, rather than large increases all at once.

Keep in mind the upkeep costs of the property, your mortgage repayments, and what the tenant can afford when determining your rental increase.

9. Update any outdated policies

Take a look at your policies and ensure they are up to date. Take this time to re-evaluate some of your policies, such as pet bans, to improve your relationship with your current tenant. Keep in mind any legislation changes that have happened since your policies were created.

Take feedback from your tenants on your policies and see if you can implement some of their suggestions. It may illuminate issues with your policies that you previously weren’t aware of.

10. Review your property manager

If you are already doing all of the above tips but are still losing tenants regularly you may want to take a look at your property manager. They may be dragging their feet on repairs and maintenance requests, failing to maintain a positive relationship with your tenants, and providing you with poor advice.

The job of a property manager is to balance the relationship between the tenant and the property owner. At the same time, they should be working to get you the highest return on your investment. This doesn’t mean pushing your rent up through the roof, but ensuring you have a stable income coming from your property.

Review the work your property manager has been doing. Determine whether you need to switch to a property manager that better understands how to ensure both you and the tenant are happy.

Conclusion

Losing a tenant and having to search for new tenants is an expensive process. Keeping long-term tenants who keep the property in excellent condition and pay rent on time is the most effective way to maximise your return on investment.

If you are struggling to retain tenants come have a chat with Link Living.