Tenant Retention: The Savvy Landlord’s Secret to Saving Money

We often see new – and sometimes experienced – landlords in Annapolis make the mistake of focusing on acquiring new tenants rather than retaining the tenants they have. They spend hundreds, even thousands, each year to find new tenants.

With high marketing costs, commission fees to real estate agents, and professionally cleaning the property, landlords take a hit financially looking for new tenants. One way to avoid these unnecessary costs is to focus your attention on retaining the tenants you already have.

Consider this; you worked hard to find a good tenant, and it’s been a great fit so far as they’re respectful to you and your property. It only makes sense to focus on doing things to keep them and renew their lease, right?

By the end of this article, you’ll know the most effective strategies to boost tenant retention and save money each time a tenant renews their lease.

Establish Great Communication

One of the most frustrating things for tenants is having a landlord who is uncommunicative. Whenever they ask a question or need help, they have to reach out several times or wait days for a reply.

Be a better landlord and establish great communication with prompt responses with your tenants. Set a specific way in which you will communicate with your tenants. Whether it’s by text, email, or phone call, be sure that you’re available most of the time.

It’s also important to remember to be kind and respectful when talking to your tenants. Form a good landlord-tenant relationship where you both feel comfortable making requests to each other. This can go a long way when you’re working to retain your tenants.

Make It Easy to Pay Rent

You want your tenants to pay rent on time each month, right? Tenants want an easy way to pay rent each month. Most of them, 57% to be exact, say that an electronic means to paying rent is important to them.

If you make paying rent difficult and a burden for your tenants each month, they will quickly grow tired of it and dream of renting from a landlord who is more accommodating. So, making it easy for your tenants to pay rent can help you retain them for future years.

Make Repairs Promptly

When your tenant calls or texts you about a repair that needs to be made at the property in Annapolis, be sure to do it promptly. Whether you make the repairs yourself or you hire a professional, do so in a timely manner, so your tenant isn’t waiting too long.

Depending on the issue, it may take a little longer to get the repair made. Be sure to communicate this with your tenant, so they don’t think you’re dragging your feet.

Offer Lease Renewal Incentives

When it comes time for your tenant to decide whether to renew their lease with you, offer an incentive. This incentive could be a discount on the rent each month or even for just one month.

You could also offer to include the price of a utility, such as water, or add an amenity, like a Netflix subscription. This little incentive could push them to renew their lease with you, especially if they already had a great experience living there.

Be sure to ask your tenant at least 60 days before their current lease ends if they plan to renew or not. This gives them time to consider their options and for you to offer your renewal incentive.

Listen to Tenant Suggestions

Listen attentively to tenants when they speak with you about the property. While they may not come right out and say that they have an issue with something in the property, they may mention it in passing.

For example, if the bathroom is outdated, they may mention that the property would be nicer if it were renovated.

Take these suggestions or complaints into consideration and see what you can do to solve them. If your tenants see that you’re taking the initiative and really hear what they say, they will be more likely to renew their lease and boost your tenant retention.

Have Longer Lease Options

Many landlords offer standard one-year leases in Annapolis. However, at the end of each lease, they’re left scrambling to find a new tenant each year.

When you offer longer lease options, such as two or three-year leases, you can avoid paying for tenant acquisition every year.

If you focus on creating a good experience for your tenants and try to boost tenant retention, they could even renew their multiple-year lease, relieving you of the stress of finding a new tenant for another couple of years.

Allow Pets

You may be wary of allowing pets in your Annapolis property because they pose the risk of damaging it. However, 90% of renters own pets and need a property that allows them.

With more renters with pets than properties that allow them, they’re more likely to renew their leases because the search is so difficult for a new place.

If your property is one of the few that allows renters to have pets, then you will have an easier time boosting tenant retention, especially when you pair this with the other strategies we suggest.

Keep the Rent Low

It’s tempting to raise the rent each year. As a landlord, your ultimate goal is to create another stream of income for yourself. However, raising the rent risks losing your current tenants.

When it makes sense, keep your rent on the lower side of the market, so your tenants are getting a great deal. Of course, consider your expenses and investment goals before lowering the price.

Work with a Property Manager

One of the best ways to boost tenant retention in Annapolis is to work with a property manager. These real estate professionals are educated and trained to work with tenants and provide a pleasant and excellent experience for them.

Mainstay Property Management is the area’s leading property management company, and we want to help you boost tenant retention. Our outstanding team of professionals guarantees clear communication, guidance, and success with our proven systems.

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