People who own rental properties must keep them rented in order to make money and pay expenses. Empty rental units cost money in advertising, cleaning, upgrading, and lost income. It is important to choose renters carefully and keep them happy so they stay. Keeping good tenants begins when they move in and continues during the lease and when renewal is coming up.
The Cost of Rental Turnovers
When a tenant does not renew their lease, the unit will stand empty while it is cleaned, repaired, and marketed. The costs are not all financial either. Costs of finding new renters include the financial part of repainting and repairing the apartment, the marketing costs, and the loss of income. It also involves the time the owner must spend showing the apartment, vetting the renters, and getting the new renter’s paperwork done and they moved in. It can cost as much as $1,700 to have an empty rental property.
It is more cost-effective to do everything possible to keep good tenants. Don’t overpromise or misrepresent the unit whether it is a house or an apartment. When the tenants move in, make sure they are happy and keep communicating with them.
Does the Apartment Building Have an Elevator?
Does the apartment building have an elevator and, if so, is it in good working order? If there is no elevator, consider lift installation services from hinchong.com. Elevators give apartment building tenants convenience and mobility. There are also lifts designed for multistory houses. The lifts will make your building more appealing than a rental without a lift. Some people do not like climbing multiple flights of stairs with bags of groceries or sports equipment. There are also good tenants who may have some mobility problems that make it hard to climb stairs. Keep the elevators in good repair.
5 Things to Do to Retain Tenants
Retaining tenants is good business. It saves money on turnover expenses, it keeps income consistent, saves the uncertainty of new tenants, and saves the time and money of preparing the unit to rent to a new person.
Consider these 5 things to do to keep turnover at a minimum:
- Be a good landlord by being proactive with building maintenance. Check in periodically to see if the tenants have maintenance issues such as a clogged sink or other repair issues. Address tenant issues quickly. Do repairs at tenant convenience. Make communication easy.
- Offer features that tenants want such as remodelled kitchens and bathrooms, wood floors, and air conditioning.
- Keep the tenants happy by making them feel special and appreciated. Keep tenant cards with information such as their names, birthdates, where they work, and some of their interests. Consider surveying tenants periodically to see if they have complaints that need attention. When the surveys come back, acknowledge them.
- Keep track of each unit’s renewal time, and contact the tenant 90 days before the lease is up. Ask for a renewal or notice of their intention to move. Offer incentives that will make them want to stay.
- When a tenant is renewing their lease, consider offering them a discount if they sign up for a longer lease. If rent increases were planned, make them smaller for longer leases.
Taking good care of existing tenants is cost-effective when it means fewer turnover costs and a more stable property and income.