By 2025, the vacancy rate in the US will drop to below 4%, making it more difficult for landlords to find tenants. If you have investment properties sitting vacant, it's time to reconsider your tenant retention strategy. Without a leasing management plan, your vacancy rate will only increase.
Here are a few tips you can use to keep great tenants in your properties. With this advice, you can maximize your tenant retention rate and earning potential. Read on to improve your occupancy rate and ROI today.
Hire a Property Management Company
You don't have to apply these tenant retention strategies alone. Hiring a property management company could save you time and money long-term. However, there are over 296,000 property management businesses in the US.
Not every company is experienced or efficient. Determine how long each company has operated in the area. Make sure they're aware of local laws and regulations.
An experienced property management company can help you apply best practices to function more efficiently. Their services could improve your landlord-tenant relationship. A property manager can respond to tenant inquiries on your behalf.
Keeping your current tenants happy could encourage them to renew their leases. Your property managers can help with:
- Tenant screening
- Rent collection
- Maintenance and inspections
- Accounting and reporting
Outsourcing these services will allow you to better manage your properties. Your tenants will always receive the help they need. Improving their living experiences could encourage them to sign their lease agreement.
Improve the Landlord-Tenant Relationship
Talk to your current tenants to gather feedback. Their responses can help you discover ways to build a stronger landlord-tenant relationship. For example, perhaps your renters are interested in:
- High-speed internet
- New kitchen appliances
- Hardwood flooring
- Shared outdoor spaces
- Open floor plans
Use their feedback to start making improvements to your investment properties. Their feedback can also help you discover incentives you can offer.
For example, do you give new tenants their first month of rent free? Consider offering the same when existing tenants renew their leases.
When speaking to tenants, remain professional, patient, and fair. Some tenants may want to negotiate. Instead of increasing their rent, encourage them to sign a longer lease agreement.
You can boost your tenant retention rate by offering a two-year lease. Your existing tenants will want to stay for the security and peace of mind.
Complete Property Maintenance
Don't delay completing property maintenance projects. Keeping your investment properties in the best shape will boost tenant satisfaction rates.
Keeping up with maintenance can help you avoid more expensive projects. Instead, you can retain your beautiful properties. You could have an easier time attracting new tenants later.
Apply These Leasing Management Tips
Don't miss an opportunity to retain the amazing tenants you already have. Instead, start applying these leasing management tips. Remember, you don't have to do it all alone.
Working with a property management company can save you time, money, and stress. Look no further than PMI Central Valley. We have 20 years of industry experience helping landlords maximize their earning potential.
You can rely on our experience and award-winning services. Contact us today to boost your tenant retention rate!