Are you having trouble with prolonged or frequent vacancies? If so, this article on the top tips to boost tenant retention in 2022 is precisely what you need. Experts predict that there will continue to be an increased demand for housing throughout 2022. However, that doesn’t mean that every property will be occupied, and all landlords can cash in.
While the real estate market is a relatively secure investment, its trends are constantly in flux. Thus, owners must stay up to date on what tenants want in order to be successful. If not, you could find yourself losing money. One of the best ways to earn the maximum return on investment properties is to hire a company that understands the tenant retention process. Also, continue reading until the end for some practical tips for boosting tenant retention.
Tenant Retention Tips
Appeal To The Right Target Audience
It is no surprise that tenant retention starts with finding quality applicants. In real estate, it’s essential to understand your local market and the type of renters that might seek out your rental.
For instance, if you own a portfolio of single-family homes, you’re most likely to attract professionals and families who need plenty of room. On the other hand, multi-family units within walking distance of the campus are more likely to appeal to college students. Keeping factors like these in mind helps owners determine where to focus marketing efforts.
Alternatively, rental owners could outsource the finding of ideal candidates to a local real estate expert. Whether you decide to work with a licensed real estate agent or a property management firm, there are many benefits their expertise can offer.
Prioritize Thorough Tenant Screening
The importance of a proper tenant screening process cannot be overemphasized. As a landlord, one of the biggest challenges is finding tenants who are qualified but will also care for the property as if it were their own.
Typically tenant screening involves proof of income, a criminal background check, rental history verification, and previous landlord references. While each of these criteria is vital to finding the best fit, landlords need to pay careful attention to the reference portion.
Previous landlords can offer a wealth of information regarding how the tenant treated previous properties and whether any issues came up. Along with ensuring they can comfortably afford the monthly rent by making at least 3 times the amount in gross income, reference checks are essential to tenant retention. If the applicant demonstrates a pattern of lease violations, maintenance concerns, or complaints from neighbors, these are all red flags that owners should steer clear of.
One of the most common real estate investing tips is to renovate your rental property. As beneficial as it might be to modernize a rental, landlords must approach such decisions wisely.
Renovations tend to be costly projects that drain your capital and sometimes require a loan. In other words, if you embark on a project without carefully considering your budget, tenant needs, and ROI potential – you risk losing money. Thus, it would be in your best interest to pick your improvements carefully.
Updates that are highly appealing to tenants in 2022 include smart home upgrades such as surveillance cameras, energy-efficient appliances, or smart thermostats. Also, you can significantly boost your home’s value with outdoor improvements like installing a patio.
Keep Communication Channels Open
Another tip to boost retention rates is to communicate with tenants. One of the most common reasons renters move out is poor communication with their landlord. After all, who wants to spend weeks trying to reach the property owner for even the simplest of requests?
Whatever mode of contact owners choose, it is essential to remain accessible and professional at all times. For landlords, setting up policies to handle maintenance and after-hours emergencies is a key to success. Whether you use an answering service, property management firm, or go it alone, always respond quickly to requests and keep tenants informed every step of the way toward a solution.
Prioritize Swift Repairs
Maintenance disputes are a top reason why tenants leave their current rental homes. Therefore, timely maintenance and tenant retention go hand in hand.
As highlighted earlier, tenants must have the means to reach you when something goes wrong. However, once issues are reported, the burden falls on landlords to act quickly. Delayed repairs and broken promises can cause tenants to lose faith in you. In addition, many jurisdictions allow tenants to withhold rent payments in escrow if maintenance repairs go unaddressed. Therefore, a great way to avoid large-scale repairs is to get proactive with periodic inspections and maintenance.
While vacancies are inevitable at some point, frequent and prolonged vacancies can generously eat into your profits. Thus, it would be in your best interest to use these top tips to boost tenant retention in 2022. It’s easier and cheaper to keep the great tenants you already have rather than find new ones. Although, if you need help implementing some of the strategies we outlined here, reach out to a professional property management company that can help