Owning an investment property can be a great way to build long-term wealth. When you are a rental property owner, keeping your investment occupied is very important to maximize returns! A great way you can do this is by retaining tenants and minimizing lease rollover. Today our Atlanta property management company delivers ten tips that property owners can follow to boost their tenant retention and increase investment returns.
1. Complete a Proper Tenant Screening
One way to improve tenant retention is by properly screening every applicant. Having a bad tenant that is late with rent or causes damage can be very costly for a property owner. To avoid bad renters, complete background checks on all prospective tenants to ensure they can afford the rent and have an excellent rental history. Thorough tenant screenings also help investors avoid costly evictions and income loss!
2. Know Your Market
Understanding the market property owners find and keep more renters long-term. Answering the question of "how much can I rent my house for” and understanding what renters look for in a good property comes through analyzing the market. If you’re not sure how to attract quality residents or set the ideal rental rate, a property manager can help!
3. Make Improvements to Your Property
Profitable real estate investments require that you make upgrades and improvements to keep homes competitive and in demand. These can be upgrades to the interior and exterior of the property that help renters enjoy the home. Renters are more likely to renew their lease when property owners keep homes in excellent condition and updated.
4. Get to Know Your Residents
While property owners should maintain a professional approach, getting to know their renters can help build a positive, long-term relationship. Keeping them informed and checking in occasionally can help them feel more at home. If they feel comfortable with you and your home, they will be more likely to renew their lease at the end of the term.
5. Make It Easy to Pay Rent
Most tenants want to pay the rent on time! Unfortunately, some property owners miss the opportunity to make it easier for renters to pay the rent, which leads to frustrated residents. Offering convenient ways to pay the rent on time every month can encourage renters to renew their leases. This can include allowing them to use electronic methods of rent payment, such as a secure online portal.
6. Respect Their Privacy
Nothing can frustrate a tenant more than feeling their privacy is being infringed upon by a property owner. Keeping in touch with renters is important, but property owners must also respect their privacy. If you’re not sure about tenant privacy laws, work with a property manager and stay away from the home unless you have approval, have provided prior notice, or there is an emergency. In most cases, property owners should give the tenant at least 24 hours notice before entering a rental unit.
7. Offer Lease Renewals Early
Getting a head start on the lease renewal process can also improve tenant retention. Start communicating the lease renewal process with current renters around 90 days before the end of the lease term. Send them a new copy of a lease outlining the new terms and encourage them to renew. If they are willing to stay, they can lock in their rate, and you don’t have to worry about finding new tenants or the costs of tenant turnover!
8. Practice Good Communication
In any professional or personal relationship, having good communication is essential. If your renter ever has a question or repair request, it is important that you respond to them as quickly as possible. Not receiving a prompt response can be discouraging for renters and discourage them from renewing their leases.
9. Send Timely Rent Reminders
We mentioned making it easy for renters to pay rent on time, but sometimes tenants still miss payment deadlines. It can be frustrating for property owners that depend on on-time rental income each month! However, instead of applying late fees or taking action, sending a timely rent reminder can often help residents remember to pay their rent and avoid a bigger conflict.
10. Work With a Property Manager
If these ideas seem like a lot of work, we promise it’s worth it! However, hiring one of the best Atlanta property management companies can help you tackle these strategies to improve retention. A property management company applies best practices to keep renters happy while protecting your bottom line!
Residential Property Managers Keep Great Tenants From Slipping Away!
Ensuring that your investment property is fully occupied should be a top priority. Keeping your best tenants for more than one lease term is one of the best ways to improve returns! If you're looking for help retaining residents, don't hesitate to reach out to Revolution Rental Management today. Our property management services help investors work less while boosting ROI.
Property owners can improve ROIs with the tips in our free resource, “10 Things You Should do to Improve the ROI for Your Rental Property!”