One of the highest costs landlords face is tenant turnover. The average cost of tenant turnover is between $1,000 and $5,000, which can significantly cut into your revenue and annual profit.
Fortunately, there are methods to reduce tenant turnover, such as hiring a property manager in Anne Arundel County, Maryland.
Landlords that independently manage their rental properties can face many issues, including problematic tenants, late rent collection, and annual tenant turnover. Let’s face it; managing a rental property successfully can be a full-time job!
When you find a property manager to hire, they will take care of the maintenance, daily tasks, and tenant relations, you can sit back, relax, and reap the benefits of your monthly passive income while proactively reducing tenant turnover.
By the end of this article, you will have a firm understanding of why you should focus on tenant retention and exactly how a property manager can help with this.
Why Landlords Should Prioritize Tenant Retention
There are quite a few reasons landlords should focus on keeping current tenants, especially if they are respectful and pay rent on time. Not only is it a smart financial move, but it also makes managing a rental easier.
Reduce Overall Costs
We’ve already established that tenant turnover can cost a couple of thousand dollars for just one property. These expenses can add up between missed rent payments, property listing costs, professional cleaning fees, and leasing agent commissions.
Imagine every year you have to find a new tenant for your Anne Arundel County rental property. Tenant acquisition costs could eat into an entire month’s rent!
When you prioritize tenant retention, you can cut out these costs and use them to improve your rental property or take them as pure profit.
Avoid Vacancy
One of the scariest things landlords can face is a vacant property. With each passing day, you’re losing money as you pay the mortgage, property taxes, and utilities for an empty rental property.
Convincing your current tenants to renew your lease completely avoids a vacancy. There will be no break in your rental income or costs to fill the vacancy.
Peace of Mind
When you have a tenant who respects your property, pays rent on time, and is pleasant to work with overall, it’s important that you try to keep them.
Too many landlords get stuck with problematic tenants they wish would move out at the end of their lease. Once you find a tenant you want to keep, do everything you can to do so!
How a Property Manager Reduces Tenant Turnover
Now that we know the benefits of tenant retention, how exactly do property managers achieve this?
Professional Customer Service
A tenant leasing your rental property is a simple business transaction. This means that the tenant should be treated as a customer; with respect and kindness.
While not all landlords have customer service-oriented attitudes, professional property managers are trained for it. Property managers know how to speak professionally and calmly in stressful situations and are always ready to solve problems.
When tenants are treated as valuable customers and not just another paycheck, they are more inclined to renew their leases due to the positive treatment and experience.
Prompt Maintenance and Repair Coordination
One of the top tenant complaints is slow maintenance and repairs from their landlords.
Since a property manager’s full-time job is to manage rental properties, they can coordinate these repairs as quickly as possible with their network of vendors. Your tenants will surely appreciate prompt repairs, especially if the damage causes discomfort, such as a lack of hot water.
Ease of Rent Payment
Did you know that almost half of Gen Z adults have never written a check before?
Long gone are the days of writing a rent check each month and mailing it to your landlord. As technology advances, landlords can now collect rent electronically from tenants.
Property managers are prepared with online rent collection methods integrated with tenant and owner portals, simplifying payments on both ends.
The easier it is for tenants to pay rent and live in your rental, the more likely they are to renew their lease.
Lease Renewal Negotiations
When it comes time for your tenant to renew their lease, you may want to raise the rent slightly to keep up with the current market. Your tenants may not always be happy about this.
Fortunately, a property manager is prepared to handle all negotiations concerning lease renewals. They can work with the tenants to come to a fair agreement for the next year, whether that is lowering the rent increase slightly or offering to include a utility in the rent.
Compromising with a tenant you enjoy renting to when renewing their lease can pay off in the long run and reduce tenant turnover.
Quick Communication
We live in an age where everyone is reachable at all hours of the day, thanks to smartphones that fit right in our pockets.
When you hire a property manager to reduce tenant turnover, they must provide prompt communication with tenants (and you as the owner).
Whether they promise to answer all requests and messages within 24 hours or have a 24/7 line of communication, tenants will appreciate being able to reach them in case of an emergency or a question about the property.
Earn More, Work Less with Mainstay Property Management in Anne Arundel County, Maryland
Hiring a property manager can significantly reduce tenant turnover, saving you thousands of dollars every year while maximizing your ROI.
Mainstay Property Management is Anne Arundel County’s leading property management company focusing on maximizing our owners’ investments and providing excellent tenant service.
Our team of real estate professionals has decades of experience in helping residential and small multi-family rental owners maximize their investment while taking off loads of responsibility from their shoulders.
Curious to see how much you can rent your property for in Anne Arundel County?
Request our free rental analysis to see if you can earn more each month today!