Landlords face significant vacancy and turnover rates every year as tenants move from one unit to another. Tenant turnover is an expensive endeavor for a landlord as it comes with significant financial expenses. These expenses include property repairs, cleaning, and marketing costs.
The trick to minimizing your turnover costs as a landlord is to keep your renters happy. This will make them stay longer, reduce your costs, and increase your profit margins in the long run. In this article, KRS Holdings, a leading property management service provider gives you tips that you can use.
Maintenance issues
At the base of most issues between landlords and tenants is maintenance issues. Maintenance issues make life unbearable for tenants and thus, they should be handled quickly and comprehensively. We recommend that you have routine inspections of the property to ensure that everything is running smoothly.
Today’s tenants want to have a quality place to live in. From the onset, you should have a well-maintained space to attract tenants. With regular inspections of the premises, it will be easy to keep the unit in good condition. One of the main factors for tenants to fail to renew a lease is unaddressed property maintenance issues.
Being a good landlord
It’s easy for landlords to think of tenants as numbers on a spreadsheet. They can become desensitized to issues with the property and can fail to relate on a personal level. Never underestimate the importance of human connection.
Tenants want a friendly person to empathize and listen to their issues. Being respectful and courteous will create a good long-lasting relationship. Coupled with open communication channels, you can be assured that misunderstandings will be a thing of the past.
Amenities
Amenities are an important part of what makes a space liveable. You would want to match the amenities that you provide to what tenants want from your unit. Some of the common amenities include fitted kitchens, beautiful outdoor spaces, open floor plans, and high-speed internet.
From our experience in the property market, the type of amenities differs from the different generations of clients. The younger ones i.e. Gen-Zs and Millenials, are keener on lifestyle amenities. The older generations are keener on familial/household amenities.
By knowing these subtle differences, you can provide a customized space that would attract a larger percentage of your target audience. Are you having challenges in identifying the perfect set of amenities? You can conduct a survey among your tenants. This is first-hand information that will serve you a long way.
Lease Renewals
Many landlords are very slow when it comes to lease renewals. Laxity when it comes to renewals could be one of the reasons why you are having significant turnover costs every year. Here are some tips that you can consider when it comes to lease renewals:
Reach out to your tenant at least 2 to 3 months before the expiry of the lease. Using a physical letter or email, inquire about their interest in renewal.
An early notice prepares both parties for either outcome. Should they decide to leave, you have ample time to think of advertising and repairs.
You can also implement some incentives to help sway the decision your way. Some landlords forgo increasing rent for that year, especially if it was a bad year economically. You can also throw in some gift packages, cleaning services, or a contribution to this and that.
The earlier you communicate with your tenant on lease renewal, the better your chances of managing the situation to your advantage.
Rent Increases
One of the most sensitive issues for tenants is rent increases and paying rent afterwards. Sudden or steep rent hikes can lead to tenant dissatisfaction and prompt them to seek more affordable housing options elsewhere. As a landlord, it's crucial to approach rent increases thoughtfully and strategically to minimize turnover.
First, ensure that any rent increase is justified by market conditions and improvements in the property. Conduct regular market analysis to stay informed about the average rental rates in your area. This will help you keep your rent competitive while ensuring you get a fair return on your investment.
Second, communicate any planned rent increases well in advance. Providing tenants with sufficient notice—at least 60 to 90 days—allows them to budget accordingly or start a conversation about the changes. Transparency in your reasoning, such as citing increased property taxes or maintenance costs, can help tenants understand the need for the increase.
Consider offering incentives to soften the impact of a rent increase. For example, you might offer a lease renewal bonus, such as a small discount for early renewal or a free professional cleaning service. These gestures can help maintain goodwill and make tenants feel valued, reducing the likelihood of turnover.
By implementing a fair and transparent process for rent increases, you can maintain a positive relationship with your tenants, ensuring long-term occupancy and reducing the costs associated with frequent tenant turnover.
Fair treatment
As a landlord, you must have a tenant agreement in place that maintains the rules and regulations of the premises. And enforcement of those laws is what protects your interests. Firstly, it is important that you are compliant with all local ordinances, federal, and State laws.
Secondly, all tenants must be treated in a fair and just manner. This applies to all tenants regardless of their physical appearance, gender, sexual orientation, religion, or race. All tenants must experience the same quality of management. Should there be any deviation, you might be setting yourself up for a day in court.
Conclusion
Many advantages are to the landlord by keeping your renter happy. You can be assured of consistent income every month and also reduce turnover costs. In addition, you can reduce the risk potential to your property since you will be dealing with tenants whom you already know.
Management of a property is not as easy as many people think. You need to put in a significant amount of time and resources to ensure profitability. Apart from the experience, you will need expertise and technical skills.
For premier property management services in Richmond, Hampton Roads, and Northern Virginia, look no further than KRS Holdings. Renowned for our integrity, accountability, and extensive experience, we are the top choice for managing your property needs.