Experts in Salt Lake City property management know that keeping good tenants is one of the best ways property owners can maximize returns and protect their rental properties. When landlords don't have to deal with the costs of marketing a vacant rental, make-ready expenses, and lost income from an empty rental, they see better profits! However, finding and keeping excellent residents for more than one lease term isn't always easy!
What are some of the best strategies rental property owners can apply to improve tenant retention? Take a look at these expert property management recommendations to keep long-term renters happy and improve renewal rates.
Exercise Caution with Rent Increases
Excellent renters are a significant asset in the long run. When rental property owners find good tenants, applying some best practices to your renter management strategy can encourage these assets to renew their lease (and save you from the potential of a bad tenant moving in)!
One of the biggest ways to discourage renters from renewing their lease is to apply a significant rate increase for the new lease term. While most Salt Lake City renters expect the rent to go up at renewal, they'll look for a new rental home and not renew with you if it jumps significantly.
Make sure your lease agreement outlines how often and by how much (as a percentage) tenants can expect to see a monthly rent increase. The percentage should be a reasonable amount that existing residents can likely accommodate without a significant impact on their budgets. Property management experts also recommend giving residents plenty of notice before the increase takes effect and avoid trying to raise the rent mid-lease; in most cases, mid-lease rent increases violate landlord-tenant laws!
Respond Promptly To Maintenance Issues
Another common reason why tenants don't renew is the frustration of dealing with poorly maintained rental homes and lackluster maintenance services. When residents don't receive prompt responses to requests or emergencies or deal with ongoing problems that property owners never fix, they won't stay for another lease term. Letting things break (or stay broken while delaying a repair) is a bad habit that doesn't save money for real estate investment property owners and won't build positive long-term relationships with residents.
Improving tenant retention requires:
- A proactive maintenance plan (including preventive tasks throughout the year)
- A 24-hour emergency response system that allows residents to receive a response when something goes wrong after hours
- Using qualified maintenance repair team members or contractors who can make simple repairs immediately on the first visit
- An easy way for tenants to place maintenance requests online
Prioritizing maintenance can feel like an overwhelming way to improve tenant retention. If you're not sure how to apply these recommendations, a Salt Lake City property management company can improve your maintenance services to keep renters safe and happy.
Lease Renewal Incentives
Offering an incentive for renewing a lease with a longer term helps keep good tenants. Renewal incentives are a powerful technique used by Salt Lake City property management companies to show appreciation to excellent residents and encourage them to stay!
Landlords don't need to invest significant time or money into renewal incentives. These can be simple things like gift cards, free air filter deliveries, a renewal whole-housing professional cleaning, or locking in a rental rate for an 18-month or 24-month lease. Sometimes these small incentives are the perfect things to encourage renters to stay!
Be a Good Salt Lake City Landlord
That may sound easy—but it can be challenging! What does it mean to be a good landlord? Keeping your best tenants requires more than simply putting a roof over their heads and responding to maintenance calls.
Excellent real estate investment owners build excellent relationships with residents through good communication, thorough lease agreements that clearly outline the rules, compassion, and (in some cases) flexibility. While it's important to treat all tenants fairly and equally, sometimes an excellent tenant's sudden change in financial or life circumstances calls for a bit of flexibility if the rent is a day or two late.
Tenants Are More Than a Rent Check
When landlords see residents as more than a rent check, they can find more ways to serve them well as a housing provider. A property management expert knows that maintaining quality rental homes, listening to resident concerns, and addressing issues right away can go a long way toward retaining renters who feel safe, comfortable, and appreciated in your rentals.
A Salt Lake City Property Management Company Manages Renters for Better Retention
Keeping good tenants does not necessarily mean going out of the way to keep all tenants. When it's time for bad tenants to go, it's wise to follow the lease and landlord-tenant laws to either not offer a renewal or encourage them to leave amicably before the lease ends.
However, good tenants pay the rent on time, take good care of your properties, and are pleasant to have in your homes. If you're not sure how to apply the strategies we've mentioned here or you don't have the resources to deliver better maintenance services, let Reeder Asset Management property managers help! We have the property management experience landlords need to manage renters well, protect properties from bad tenants, and improve retention rates for better returns.
Learn more about protecting your rentals and income! Get our free resource, "Protecting Your Investment Property: A Guide."