Finding new tenants for your rental property time and again can be a costly and time-wasting affair. High turnover rates can eat your resources and increase your efforts to find a new tenant. It proves to be cost effective to have happy, long term tenants that renew their rental lease, so you can save the high costs when they move out.
Here are some tips to help your current tenants turn into long term tenants
Inform about all the rules and regulations beforehand
When your tenants understand the entire tenant screening process, rules, and responsibilities before they move in, their tenancy process becomes smoother and they are a lot more confident to continue the lease. Laying all rules and regulations up front will reduce any scope of confusion and misunderstandings in the future and avoid a lot of headaches down the road.
Be a little more lenient in collecting rent
Offering a little grace period to the tenants with good credit records while collecting monthly rent can be beneficial to you both. If the rent is due on the first of every month, offering a grace period until the fifth without any late penalty charges will give them a little more time to pay the rent, and make them feel relaxed. Being too strict may make you look like a tyrant, and your tenant might look for a landlord who is a little more lenient.
Address concerns immediately
It is important to address the serious concerns of your tenant as soon as possible. Whether it’s a broken door knob or leaking water, if your tenants feel important, they will be content. While certain problems must be solved immediately, there are many some issues that can be dealt with later. As a landlord, you need to prioritize the concerns, and make suitable arrangements for your tenants.
Offer rewards and incentives
Little gestures such as sending a welcome card or offering free parking space can go a long way, especially in the times of stiff competition. You can also offer a good discount if they sign a two-year lease, salvaging them from increased rents in the future, which would be beneficial for both the parties. Offer them a few incentives such as free storage space or a free paint job in the entire apartment, if they renew their lease. Another good strategy is to organize various social outings with neighbors to promote closeness between tenants. Once your tenants are comfortable with their neighbors, they would not want to switch apartments and look for newer properties.
Raise rent less than the maximum amount
Try to raise the rent a little below than the typical market rates when the lease gets due. It will prevent your tenants to look for any other properties and it will also lower the turnover expenses for you. Try to give them the best market price, and you can be sure that your tenants will renew the lease without a blink.
Maintain all the common facilities that you have promised, while giving the lease. Renters, who pay extra rent to use common facilities such as saunas, gym, gardens, or pools, also expect their property manager to keep them in the optimum conditions and in a perfect state. A building manager, who lags in maintaining common areas, loses their good reputation.
Be a friendly landlord
It is important to be fair, responsive, and friendly. Even though you own the property, it is eventually your tenant’s home. Make them feel as comfortable as you can, and try to address their important needs. Being a little more flexible with your tenants will go a long way in earning a favorable reputation. It is critical to develop long-lasting and strong relationships with tenants. Conflicts are bound to arise, but landlords and property managers must keep a positive attitude, and give the benefit of the doubt to the tenants.