Thursday, January 14, 2016

How to reduce tenant turnover

A study just published by Property Management Insider showed that in the last quarter of 2015 lease renewal rent for apartments in the U.S. grew 5%, rental retention was 50.4%, and occupancy was 95.8%.

For us individual landlords who buy and manage our own properties, what’s going on at a local level is more important than the big-picture presented in that report. After all, one street can make all the difference between buying a cash cow and a dead horse. 

Still, it is an encouraging trend.

So what can you do to boost your tenant retention and occupancy rates?

Run your rentals like a business that has customers. And if you want to keep good, long-term tenants, be proactive. That means inspect regularly, respond quickly, and be creative. Look at how to improve things while they’re still there. Reward early payments, offer extra services like direct deposit, or tenant insurance. Even a gift certificate to a local pizza joint can go a long way.

New paint, replacing a nasty-looking washer and dryer, or even a security system if they pay the monthly monitoring fees could be a good gesture when it comes time to renew a lease with an increase in rent.

Would you like more ideas on buying and managing rental properties? Pick up a copy of What You Must Know BEFORE Becoming a Greedy Landlord. It’s available in paperback and Kindle formats at Amazon. You can also order it from Barnes & Noble, Booklocker, iTunes, and kobo.

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