A landlord’s dream is to ensure that tenants are happy and stay in their rented space for the long haul. Therefore, it’s essential for landlords to create and implement a plan to retain tenants in their properties.
Landlords will want to retain tenant’s stability, which is a tenant who stays in your property for four or more years. The worst-case scenario for a landlord is going through all of the time and effort to find the perfect tenant only to have to find someone else when the current tenant’s lease is up. Having tenant stability means you won’t have to advertise your properties as much and will have a steady stream of rent money coming from reliable, trustworthy tenants.
Here are some ways you can create more stability with your properties to entice tenants to stay for multiple years:
Make sure you have a proper screening process.
Most landlords know to check potential tenants’ credit scores and criminal history. Another thing to consider and check is how often they move. If they only stay in place for a year or so, it’s highly possible they will do the same thing in your rental property. Don’t be afraid to ask them questions to weed out red flags and tenants that may not be the right fit for your property.
Have a lease that is interlaced with stability.
Try to have leases for at least one year, perhaps even two years. Don’t go above the two-year mark because it could prevent flexibility and cause issues down the road between you and your tenant. The only times shorter-term leases work is with vacation and student rental properties.
Talk about tenant stability when your tenant signs the lease.
You will want to go over everything with your tenant. Schedule a separate meeting where you can talk about lease terms and other provisions. Be sure to tell the tenant that the signed lease is a legally binding contract. Also, work in provisions in your lease that will make them lose money if they break the lease. This encourages tenant stability from your business’ standpoint. As the landlord, you have the discretion to bend the rules a little bit, depending on your tenants’ situation.
Cultivate a good relationship with your tenants.
Be sure to talk with them — not only about their rented property but just in general. Always be sure to maintain your properties and answer questions and requests in a timely fashion. Always communicate. That will keep your tenants happier.
Be mindful of rent adjustments.
You will want to keep your monthly rent prices slightly below market for your particular properties. A tenant may do some research on other properties if they feel their residents’ needs are not being met, so you will want to show them they are getting a less expensive price with you. Providing a fair, decent price will keep your tenants in your rental properties. When was the last time you’ve checked your rental’s pricing? Request a free rental evaluation report here and know if your pricing is right.
These tips, as well as others, will help you retain more tenants and give them — and you — stability.
Bolld Real Estate Management’s best practice is to make sure that we are always visible and easy to reach when tenants report damages, or asks any important question or favor that is vital to the house’s maintenance.
How about you? How are you keeping your tenants happy?