When you’re a landlord or rental property investor, there is no bigger enemy of your cash flow than losing a tenant. When you experience a higher rate of tenant turnover, this is a major hit to your wallet when you consider the expenses involved prior to getting another tenant. There’s advertising and marketing costs as well as maintenance and repair expenses involved when getting the property ready for the next tenant. Not to mention the fact you’re not receiving rent money during vacancy periods.
The best way to pre qualify a tenant and ensure that they will continue to rent from you is to hire a reputable property management company. However, if you want to reduce the amount of tenant turnover you’re experiencing and shorten those periods of vacancy in the process; here are some helpful tips to consider:
Avoid raising the rent higher than the average increase in your area
Nothing triggers a tenant’s desire or need to relocate than an excessive increase in their rent. The right property management company will know what the average increase in rents is for the area where your property is located. Raising the rent too high or too often is not going to cover what a vacancy will cost you in the long run.
Build, develop, and maintain relationships with your tenants
Communication is key when it comes to building and maintaining long-term relationships with tenants. The day a tenant signs the lease and pays that first month’s rent shouldn’t be the only time they see your face or hear from you. Touching base with tenants in a friendly fashion and on a fairly regular basis is a great way to develop a long-term relationship with them. Furthermore, regularly scheduled inspections let tenants know that you not only care about the property but that you have their best interests and well-being in mind.
Respond promptly to all requests for maintenance and repairs
Nothing infuriates tenants more than a landlord who is slow to respond to tenant maintenance and repair requests. This is vital to good property management. Remember, tenants can become disillusioned quickly if they feel they’re not being taken care of quickly and effectively. Plus, tenants need to know that there is someone available before and after business hours if there is an emergency.
Screen prospective tenants rigorously
Proper screening is essential to finding the kind of tenants you want renting your property. There are fewer problems and they will continue renewing their lease. Background and credit checks are critical to finding the right tenants for your properties. Individuals who have questionable items on their application (skeletons in their closet) are typically short-term renters who may up and vacate your property unexpectedly.