How to Attract Long-term Renters
Attracting long-term tenants is a great way to strategize against market downturns. This means you’ll be able to earn steady returns, regardless of the economy’s state. Turnovers can be unsettling since you need to allocate your resources continuously. For example, if a tenant has left after staying for 3 months, then you need to advertise your rental again. Once you attract prospective tenants, you’ll also need to spend time checking their background.
At Leenan Properties we understand how important it is for a landlord to have high quality, long term, tenants in their properties, which is why we have put together this article along with the below video:
Benefits of Long-Term Renters
Plenty of benefits can be gained by having long-term tenants. Aside from regular earnings, here are some other advantages:
1. Zero maintenance costs for vacant units
Whether or not you have tenants, the maintenance expenses will continue. You need to shell out money to keep your rental unit in tiptop shape. In fact, before a scheduled property showing, the rental space must look pristine with all the appliances fully functioning.
2. Sense of familiarity with the ongoing leasing policies
When a renter has been staying for a long time, understanding leasing policies is second nature. The landlord no longer needs to discuss the policies in detail and remind the tenant.
3. Tenants are more likely to take better care of the property
A long-term tenant is likely to have owned a few additional furnishings in the rental space. Hence, a sense of ownership is established. This leads to maintaining the facilities of the property.
4. Reduced wear and tear that comes from frequent short-term turnovers
The more renters you have, the more used your furnishing becomes. This can quickly lead to your furniture being worn out. Furniture can also be easily damaged when renters keep moving in and out of the rental unit.
5. A stronger relationship between tenants and landlords
Staying for a longer period in one place leads to friendly relations between a tenant and a landlord. Expectations and understanding are reached smoothly.
Tips for Tenant Retention
To enjoy the above-mentioned benefits, here are tips to keep your current tenants committed to your rental unit:
1. Build a good relationship.
Every landlord must learn the skill of relationship building. Know how to treat your tenants fairly and with respect. By accomplishing this, renewing the lease will be easier for tenants. Tenants want to feel at ease in their environment. If the landlord is too intimidating, they can quickly find another place where they feel more comfortable.
You can improve your tenant relations by respecting their privacy. Avoid conducting property inspections without notice. This can annoy tenants as they have a right to enjoy their place quietly. It’s also advisable to remain professional when dealing with tenants. If you find any violations committed, it’s best to follow a protocol and use an acceptable channel to give notice.
2. Give prompt attention to repair requests.
This spells out the difference between a landlord who prioritizes the wellbeing of a tenant and one who does not. For example, a tenant complains of a broken shower. If you delay fixing this, it becomes inconvenient. Using the shower is a daily habit and it needs to be addressed right away. If it takes a few weeks, the tenant can feel resentful, especially if the rental payment is prompt.
A landlord who’s quick to fix any property damages and minimize inspections is someone a tenant will always be thankful for. There’s no need to repeat the requests or suffer through inconveniences. Busy tenants will not want to find another rental property to move into. They’re satisfied living in a place where everything is functioning perfectly. This is also where your exemplary customer service is displayed. You can advertise your customer service as much as you can, but if you fall below expectations, you’ll be hard-pressed to find long-term renters.
3. Offer incentives.
A reward system for long-term tenants is also an effective tool to keep them renewing year by year. For example, if a tenant has stayed for 2 or 3 full years, you can offer a one-month free rental discount. Instead of focusing on the month-long loss of profit, you can view it positively. You’ve saved on maintenance costs for a vacant property. You’re also able to cut back on marketing and tenant screening expenses.
Tenants who are given a reward to stay longer will also be delighted by their saving. For example, they’re able to save on moving expenses. Additionally, they don’t have to allocate time to research other rental properties to move into. There’s no more adjustment period since they’re already familiar with the landlord’s expectations. Lastly, tenants have cultivated a professional relationship with the landlord making them more comfortable with staying longer.
4. Welcome pets.
Pet-friendly rentals are hard to come by. If there are landlords who are open to allowing pet ownership, there are also stringent standards. It’s a good idea to entertain pets and have flexible policies in your rental space. Doing this, you’ll capture a hefty size of the market looking for pet-friendly rentals.
On another note, pet-owning tenants are more than willing to pay additional fees. This means a higher side income for you.
Although welcoming pets can be risky, if you have a good pet policy program, you can reduce your anxiety. First, be clear on your lease what breed and size of pets are allowed. Next, request an insurance policy from your tenants to pay for injuries that a pet may cause in the premises. Third, observe the pet discipline so you’re able to gauge how well-managed the pet is. Covering all the contingencies will protect you from the risk exposure of welcoming pets.
Attracting long-term renters isn’t merely a luck factor. You can actually take steps to ensure you’re able to retain your existing tenants by keeping your property rent ready and following the above tips. Remember to treat your renters with respect and listen to their needs. A good landlord can meet and even exceed a tenant’s expectations. If there’s something you can do to make a tenant’s stay more satisfactory, then go ahead and apply your ideas. A happy tenant is a long-term tenant.