Many factors affect why tenants choose to move out instead of settling down for a few years. Some of these are factors beyond your control as a landlord, like: employment growth, median age, and supply growth within the area.
Sometimes, it’s a matter of preference; your tenant might choose to leave because there was something he didn’t like. If that’s the case then, you can implement changes and improvements to encourage your tenants to extend their contracts.
Start with the following:
Focus on Your Tenants
Some of the most common complaints tenants have are about the landlord. This mostly consists of concerns regarding property maintenance and your availability. Who will answer to maintenance issues if your tenants can’t reach you?
Making yourself available to your tenants when they need you tells them that you’re a dependable landlord. This works in your favor because a satisfied renter is less likely to move out than a dissatisfied one. Additionally, addressing your renters concern in a timely manner benefits you both. Repairs cost less when done before the damage worsens.
But there are times when your schedule just doesn’t permit being there for your tenants whenever they need you. When this happens frequently, you should consider hiring a management service for residential properties.
Property management companies oversee the needs of your tenants and the necessary repairs needed on your property. They act on your behalf; preserving the value of the property while still generating income.
You should focus on your tenants. Be mindful of any maintenance issues, respond to repair requests on time, and keep your word if you agreed to something. Build a mutually trusting relationship with your tenants so they’ll feel more at ease with you and the place they’re renting. They’re less likely to leave when they are at ease around you.
Encourage Longer Leases and Make Renovations
One direct way to encourage your tenants to stay is through offering them a deal that’s hard to refuse. Talk to them about renewals before their lease is up. Approaching them weeks before their renewal date gives your tenants ample time to think about your offer.
Since one of the major reasons tenants move out is increasing rental rates, proposing a deal that cuts some part of the costs may persuade them to stay. The goal is to get your good renters to stay, so adding perks to their rent or reducing their rent may make them think twice about moving.
Tenant retention is ideal but difficult to achieve. Most tenants go after their initial lease is up, not lasting more than a year. But it is a worthwhile effort, especially when it comes to good tenants, because of what you can get in return.
Tenant retention is much more valuable than getting new tenants. With lease renewals, there’s no vacancy to fill, no need to advertise the property, and no need to screen all the applicants to replace the previous renters. It’s convenient and benefits you as a landlord because you’d have a steady source of income.
