Attracting new tenants is a time-consuming and costly experience for property owners and managers. However, retaining current tenants is the most cost-effective way to maximize your occupancy rates. It will eventually contribute towards your rental income in the long run as well. That’s why you need to be aware of the best tenant retention strategies to follow.

What Is Tenant Retention?

Tenant retention refers to the strategies landlords can use to make current tenants of your property. This can help build a good relationship with your tenants and eventually get them to renew their leases before it ends. High tenant turnover can lead you to frequent vacancies. It has a direct impact on the rental income. On the other hand, you will have to spend more money on advertising, screening new tenants, and preparing the unit for move-in. 

By implementing effective tenant retention strategies, you can sustain both occupancy and cash flow. With that in mind, let’s explore some of the best tenant retention strategies you can follow.

1. Build Strong Tenant Relationships

A reliable property manager in Northern Virginia suggests building strong tenant relationships is one key to increasing tenant retention. One of the top reasons tenants leave is communication issues with the property management team. Making tenants feel valued goes a long way. Best practices include:

• Welcoming new tenants with an introduction phone call or email. Provide your contact information and set expectations for communications.
• Occasionally, check in to ensure they are satisfied with the property and ask if they have any questions or concerns.
• Respond promptly to maintenance requests and follow up once resolved.
• Surveying tenants around lease renewal to address any complaints.
• Sending holiday cards or small gifts as a gesture of appreciation.

When tenants feel an attentive landlord hears their voices, they are less likely to leave due to minor grievances.

2. Offer Competitive Rent and Amenities

While tenants may overlook a mediocre unit or location for a good deal, they will eventually leave for a nicer home they can afford. Monitoring market rents in the neighborhood and upgrading amenities helps attract and retain renters.

Smart enhancements that tenants want include:

• Fresh paint, flooring, and finishes
• Updated kitchens and bathrooms
• Improved storage space
• In-unit laundry
• Outdoor spaces like patios, decks, or balconies
• Community features like a pool, fitness center, and business center

Providing competitive rents and amenities signals to tenants that their needs are important to you.

3. Prompt and Efficient Maintenance

According to surveys, slow or poor maintenance response is a top reason tenants move out. Issues left unresolved quickly become annoying grievances. Property owners who quickly respond to repair requests signify that they care about the tenant’s comfort in their home. Not only does addressing repairs promptly keep tenants satisfied, but it also helps reduce maintenance costs in the long run.

Strategies for excellence in maintenance include:

• Ensuring routine maintenance requests are prioritized within 24 hours
• Scheduling the vendor repairs within 5 days to avoid further damage
• Follow up with tenants once the issue is fixed so they know it was attended to
• Inspecting properties quarterly to address minor issues 
• Having a well-maintained list of reliable contractors for prompt service
• Replacing outdated systems and appliances by upgrading 

Taking a proactive and responsive approach to maintenance translates to higher tenant satisfaction and retention over time.

4. Allowing Flexible Lease Renewals

Providing flexible lease terms encourages long-term tenancy. Typical 1-year leases feel restrictive to some renters who later leave simply for more options. Smart landlords offer:

• Month-to-month or 6-month terms
• Option to downgrade to a smaller unit vs. move out
• Rent increase cap for lease renewals
• Rent concessions for lease renewals

Accommodating tenant needs on renewals communicates you want them to stay long-term. A flexible approach earns resident loyalty beyond just competitive rates.

5. Personalizing the Tenant Experience

Taking the time to make each tenant feel at home leaves a meaningful impression. Little gestures of personalization go far. Ideas include:

• Handwritten welcome letters with useful local information and invites to community events
• Preparing welcome baskets with treats and necessities
• Holiday celebrations
• Recognizing tenant anniversaries
• Add local gift cards for lease renewals

Doing this may enhance the rental experience since personalizing boosts emotional attachment to the property and its management. 

Final Words 

Some of the best tenant practices require an investment of time and resources when implementing them. Proactive landlords reap substantial rewards in sustainable cash flow and long occupancy rates. Paying attention to small details helps impress tenants which ultimately transforms into big wins for property owners. 

Frequently Asked Questions 

What percent of tenant retention should landlords target? 

Benchmark tenant retention is 60-80%. Anything below requires evaluating your tenant experience.

How often should landlords survey tenants? 

Send annual tenant satisfaction surveys. Also, periodically reach out personally regarding needs or issues.

What’s the best way to raise rent for tenants to renew their leases? 

Limit increases to 5% yearly. Communicate new rates 2 months before renewals. Highlight property upgrades that support increases.

Should landlords allow pets to retain tenants? 

Survey your tenants regarding interest in pets. Consider a trial period allowing pets in 1 or 2 units. If successful with those tenants, expand the policy.

How can landlords make move-out easier for good tenants relocating? 

To leave on good terms, provide positive references, return full deposits promptly, and maybe offer discounted rates if they ever return. Rather than seeing former tenants as lost income, view them as potential repeat customers.

What minor unit upgrades retain tenants long-term? 

When renovating between tenants, prioritize these improvements: 

• Resilient vinyl flooring or tile and low VOC paint that stand up over years of occupancy.
• Upgrade lighting with modern fixtures and LED bulbs. This will enhance the energy efficiency of your home and help renters save money. 
• Add a smart home feature like a video doorbell for security and tech appeal. 

Should landlords allow subleasing to retain tenants unable to fulfill their entire lease?

Evaluate sublease requests case by case. Allowing an existing tenant to sublease in a bind retains more control than forcing them to break the lease. Qualify the sublessee through your same tenant screening process for compatibility.

What incentives encourage on-time rent payments from tenants? 

Timely rent payments are critical for maintaining positive cash flow and being paid on time should be the expectation, not the exception. Small incentives can both encourage and reward tenants for making timely payments. For example, on-time renters could be entered into a quarterly prize drawing for a gift card to a local restaurant, meal-delivery service, or nearby coffee shop. This is a great way to engage with tenants, encourage timely rent payments, and support other small businesses in the area without breaking the bank. Just be sure to convey the rules and process clearly to all tenants so everyone is included and aware of the program.