Retaining tenants is foundational to running a successful renting business. As we said in our last blog, turnover time can cost you up to three months of rent. The longer you can keep renters in your properties and avoid that turnover, the better you’ll do.Keeping renters in your property may sound simple, but chances are you know how difficult it can actually be. Sometimes, it seems like all the great renters keep moving out, while that one renter you can hardly stand is ready to stay with you for the next decade. As a landlord, it can feel like you are at the mercy of the housing market as well as your neighborhood. The neighborhood improves; your renters and rent payments also improve. The neighborhood gets worse and running a healthy, successful renting business gets very difficult. The thing is, there are things you can do (despite what is going on around you) to ensure your renters don’t want to leave.
In our years of experience with the renting industry, we’ve learned the reasons why renters tend to leave what can be done to make them want to stay. Read on to learn more!
Reason 1: It’s Too ExpensiveWe’re starting with this one because it is the most common reason why renters move on to other properties. Life happens, and sometimes, they lose their jobs, welcome a new family member, or need to be able to save more.
- Help them stay: Do you manage multiple properties? If so, it is definitely worth checking to see if you have a cheaper property this tenant can rent instead. You’ll keep the tenant and not have to worry about filling two vacancies rather than one!
- Whether you have multiple properties or not, you can offer to reduce the monthly rent. It may not be optimal, but if you can make a small reduction and keep the tenant, it is worth it. Why? Because you will spend more trying to find new tenants to fill the vacancy.
Reason 2: Relocation/Job ChangesSome tenants don’t want to move, but their careers or other life factors force them to do so. For instance, they may have changed jobs, and their new salary might be different. Whether their new salary is more or less than before, it can often cause renters to look for new properties. They may also be relocating to be able to work a new job, and in these cases, you’ll see them making the move quickly.
- Help them stay: If the tenant needs to move for a job, there isn’t much you can do. However, if the tenant is just relocating jobs within your area, you can offer reduced rent or upgrades depending on their salary, but only if they stay. Making adjustments is worth it, not just because you don’t have to fill a vacancy, but because being a landlord who is willing to work with your tenants (to a reasonable extent) is excellent for your reputation and will keep tenants around longer.
Reason 3: Neighborhood ChangeAs we said in the beginning, you can’t really control what happens to the area around your properties. Sometimes, tenants feel that their neighborhood isn’t safe anymore or they don’t like the school options available to them. They may also want to relocate from the suburbs to the city or the other way around. They may want a different neighborhood for their kids or different weather. The reasons are as varied as the people who express them.
- Help them stay: If your tenant doesn’t like the entire area, there isn’t much you can do. We recommend you offer incentives to give them a chance to change their mind. You may also get lucky and own property in their desired new location, in which case you can ask them if they might move into that rental instead. The key is keeping their business.
At Broker One Rentals, we understand the constant challenges that come with real property management. We also understand that great landlords make great lives possible for the renters, and we are passionate about helping Evansville landlords provide the very best rentals. Contact us today to learn more and take your rental business to the next level!