How to retain existing tenants

How to retain existing tenants

A vacant property cost money. It is not just the rental income that goes for a toss, there are additional expenses that a owner has to incur. The property has to be advertised and maintained while it is still unoccupied. There are other expenses such as property taxes that need to be paid adding to the cost. When there is no income, these expenses seem like a burden.

The intent however was to earn income. If the property has been lying vacant after its purchase or if there's a tenant who is planning to move out, you are faced with the question of how soon the next occupant can be found. But there's another option. What if the quality tenant can be retained?

Retain the tenant if possible.

If the property is currently occupied by a tenant who has been great in all respects, it would be a good idea to try and retain them. But as people progress in life, they start planning to buy a house instead of continuing to rent. In such a case, you should start thinking of the next move. But if tenant is still on the fence, it makes a lot of sense for you to do what you can, within reason, to retain them. Instead of waiting for the tenant to issue a notice, it is better to do some proactive thinking to retain them. In an effort to retain them it is better to conduct a survey asking a simple question:  What can we do to keep you as a tenant? While it is possible that they may ask you to reduce the rent but you will have definitive responses for that? However, if they ask you to fix something that is wrong or if they ask you to repaint a room or make small changes, it should not be a big deal. Now that you know exactly what will hold them back, it should occur to you that fixing those small things or meeting those requests in most cases will cost less than a vacancy and prep for a new renter.

Did it occur to you that offering rental incentives to quality tenants to keep them around is one way to reduce the chance of having a vacant property? It could be painting rooms and even making minor repairs that mean something to the tenant. Tenants appreciate living space that is up to date and doesn't show signs of a lot of wear and tear.

Use Existing Tenants as a Marketing Tool

Referrals can be a valuable marketing tool. Why not use your current tenants to draw in potential tenants? While offering incentives to retain existing tenants, you can also reward tenants who bring in new renters financially or otherwise. A good landlord offers a quality property and timely response to tenants requests, which in turn ensures that if he asks them to refer the property to others, it would not be a problem to them. Since they like you as a landlord, they will appreciate the idea that you trust them to do something for them. Additionally, they will appreciate the reward.

The tenant already knows the kind of tenant you are looking for. The condition for the tenant to receive the reward will have to be stipulated. The duration of the lease the prospective renters will need to sign, how long they'll have to actually be in the property before you reward the incentives, etc.

The easiest “sale” to make is to an existing client. The other way is to use a referral. They can help you as a property owner or as a management company to extend your average length of occupancy and in the end, add more moolah in your pocket!

The above ideas and more can be had from property management service providers such as SANGAU. They not only provide assistance with day to day property management, but also provide helpful suggestions. Their insight into rental property issues can be handy for someone looking for new tenants.