How to Increase Tenant Retention Rate
A high tenant retention rate is sufficient for a real estate property to produce a stabile cash flow. A property’s vacant period is costly because first, the property is not generating money. Secondly, maintenance fees would still be recurred to make sure the property is in a good condition. Although losing some tenants might be a good riddance due to their poor behavior, in most cases you would want to maintain a good tenant-landlord relationship for the sake of protecting your cash flow.
Some of the factors that could increase your tenant retention rate:
- When a lease expires, promptly initiate contact with your tenants to have them sign a new lease.
- Be reachable and be prompt when returning messages or fulfilling promises. You need to build and maintain your tenant’s trust because essentially they are the lifeblood of your business.
- In the same way, respond to your tenant’s request for repair promptly. The problem your tenant has is frustrating enough, you would not want to add tardiness on your part to your tenant’s frustration.
- On top of that, make sure that you are always dealing with the tenant in a pleasant way. If you are using a property management service company, make sure that they are a group of pleasant people who could do all of the things above for you.
- Treat all of your tenants the same way to maintain a good business relationship where all the expectations are clear.
When you treat your tenants in a professional, friendly and accommodating way, you are essentially saying to them that you value their business. In return, your tenants would respect you and trust your service, and this would create greater likelihood for them to stay loyal to you.