The rental market is strong, and many great residents are looking for new homes.
You should still focus on tenant retention, regardless of the strength of the rental market or the high potential rental prices.
Retaining tenants has meaningful benefits. You’ll have stable rental income, lower turnover costs, and a positive reputation in the rental market.
As professional property managers in the Atlanta area, we prioritize retention, and these are some of the strategies that work best for us.
Provide a Great Place to Live
Tenants want to live in a well-maintained, clean, and comfortable home. If they love the space, residents are more likely to stay longer. Schedule routine maintenance to keep everything in good condition. This includes preventative services for plumbing, electrical, heating/cooling systems, and appliances.
Invest in fresh paint and modern upgrades. Minor updates, such as fresh paint or installing new and efficient appliances, can significantly affect how tenants view their home.
Be Responsive and Communicative
We take communication seriously because we know it impacts our relationships with our residents and, thus, their satisfaction. Good communication is necessary to build trust with your tenants. Whether it’s a maintenance request or a simple question about the lease, always be prompt and professional in your response.
- Establish clear channels of communication. Offer multiple ways for tenants to contact you, such as email, phone, or a tenant portal. Make sure they know when and how to reach you.
- Address issues quickly. Respond quickly and effectively when tenants raise concerns. Timely action on repairs and maintenance is a huge factor in tenant satisfaction.
- Remain accessible and available. Create an environment where tenants feel comfortable coming to you with their concerns, knowing they won’t be ignored.
Tenants are more likely to stay if they have a good relationship with their landlord. This does not mean you have to be friends, but it does mean treating them with respect and professionalism. Check in periodically in a noninvasive way that respects their privacy.
Lease Renewal Incentives
Give your tenants a reason to stay in place and renew the lease. Incentives don’t always have to be monetary. If they’ve requested a new appliance, consider upgrading it. Maybe they want hard surface flooring instead of carpet. You’d have to make repairs and cosmetic upgrades during a turnover anyway; why not make those updates while keeping your residents in place and avoiding a vacancy?
Send cards, well wishes, and small gifts on birthdays and anniversaries. This can make tenants feel special and incentivize them to stay in place.
Another great incentive is offering lease options that fit tenants’ needs (like shorter or longer leases). This can make it easier for tenants to align their plans comfortably with their lease agreement, and they’ll be less likely to leave.
Offer Additional Amenities and Services
Extra services or amenities can set your property apart and give tenants more reasons to stay. Convenience is a big draw for tenants. For example, if you’re not already offering online rental payments, consider implementing a system that allows them. If a tenant wants to adopt a pet, make the process easy and be willing to implement a pet policy that will enable them to live with their furry friends.
Make Rent Increases Reasonable at Renewal Time
While raising the rent is almost always necessary at renewal time, and tenants typically expect it, smart rental property owners will do so thoughtfully. You don’t want to give tenants good reasons to look for more affordable housing options.
- Be transparent. Always give ample notice and explain why the increase is happening. Tenants are willing to discuss rising property taxes and inflation. When tenants feel treated fairly, they are more likely to stay even with a slight rent increase.
- Study the market. Get an idea of what homes similar to yours are renting for. This will help you understand how much of an increase is justified. Tenants will know whether you’re giving them a good deal; they’ll do their research.
Keeping a good tenant in place is much better for your long-term earnings than $50 more monthly rent. Raise your rent so you can continue to be profitable, but don’t raise it so much that you face an expensive turnover.
The Value of Move-In Support
Good communication and consistent processes at the beginning of a lease term will go a long way in helping tenants feel supported. Moving is stressful. Making the process as easy and smooth as possible will significantly impact tenant satisfaction.
Provide detailed move-in instructions, including information about the home, such as how to turn on the heat or the air conditioning. Let them know which days the trash goes out. Helping tenants feel welcomed and informed sets a positive tone.
Always talk about the lease ahead of the move-in. Answer any questions and share your expectations. This will set your new tenants up for success.
In the competitive rental market, keeping tenants for the long term is essential for both financial stability and long-term success. You can significantly increase tenant retention by creating a positive living environment, investing in good relationships, and offering value. Satisfied tenants are not only more likely to renew their leases, but they are also more likely to pay rent on time, take care of your investment, and follow the terms of the lease.
We can help you implement these strategies, so please contact us at Silas Frazier Realty, LLC. Whether you have a question or need specific help with one of these strategies we’ve discussed, we are happy to share what we know. We lease, manage, and maintain investment properties in Atlanta, Snellville, Stone Mountain, Lilburn, Conyers, Smyrna, Marietta, Lithonia, Jonesboro, McDonough, Vinings, Brookhaven, Tucker, and the surrounding areas.
