A responsible tenant is worth their weight in gold to experienced landlords. When you find those tenants, keeping them in your unit should be your number one priority. Seasoned professionals know a 5% increase in retention rate can boost profits from 25 to 95%.
But what can you do to retain your highest quality tenants?
The most successful landlords have this down to a science. Improving tenant retention is the key landlords need to secure their long-term position in the market.
Lucky for you, we compiled the complete guide to improving tenant retention for landlords like yourself.
Screen Incoming Tenants Correctly
Maximizing tenant retention begins with the screening process. This is where you view their rental history, a tenant background check, credit score, and current employment.
Through the process, you want to develop a thorough picture of exactly the kind of tenant they will be. Great tenants are responsible, stable, and simple.
Still, you should be careful not to violate Fair Housing guidelines through the screening process. Every state has its own requirements, which is why many property owners look to property managers to handle the details.
Take a Closer Look at Your Market
Knowing your surrounding Salt Lake City rental market is critical to solid tenant retention.
Having to move an hour away might dissuade tenants from leaving for a better deal. On the other hand, a unit down the block might entice savvy tenants to sign with another property.
Knowing your local market will help you properly price your units as well as stay in the loop on what kind of incentives other properties are using.
Offer Friend Referral Bonuses
Incentivizing your tenants to refer their friends improves tenant retention on two fronts.
First, tenants are more likely to stay in a unit close to their friends. When tenants have a community they like, retention will increase.
Second, your tenants will begin to do the heavy lifting of generating quality leads for your property. One of the greatest costs to poor tenant retention is the loss of rental time for a unit. More leads mean lower downtime.
Implement a Simple Tenant Portal
Rent collection is not only your primary source of revenue, but it is likely the least exciting part of your tenant's experience. Nobody likes to pay a bill.
Using a tenant portal can not only increase tenant satisfaction but can also simplify and automate much of the rent payment process as well.
When it's time to pay rent, a simple notification and direct payment portal can go a long way for a tenant who wants rental payments simplified.
Let a Property Management Company Do the Busy Work
Outsourcing the busy work can take a serious load off your shoulders and increase your tenant retention. Property management companies have clean and easy systems in place for the entire tenant retention process.
A good management company has location-specific data that allows them to successfully optimize your property to retain tenants. Working with a local company will optimize your property to perform as best it can.
Contact Wolfnest to get in touch with a Salt Lake City property management company experienced in improving tenant retention.