Do property managers know that a high retention rate is ideal when it comes to their residential properties? The main benefit is to save money. In fact, a lease renewal can save you $2500 or more in marketing, tenant screening, and other typical preparation services. For this reason, you should consider investing in resident retention efforts.
One straightforward way of doing this is to require a two or three-year lease. You can clearly state these terms during the marketing process and in the physical lease. This will help you narrow down your list of potential tenants.
Table of Contents
- However, if you have doubts about this mode of resident retention, try some of the following strategies instead.
- #1 Implement Excellent Communication
- #2 Establish a Sense of Community
- #3 Install Updated Technology
- You can also read: Safety Tips Owners and Tenants Should Know While Renting Out Property
- #4 Offer Favorable Amenities
- #5 Consider Energy Efficiency
- #6 Express Tenant Appreciation
- You can also read: How to Successfully Rent A Property in Dubai?
However, if you have doubts about this mode of resident retention, try some of the following strategies instead.
#1 Implement Excellent Communication
Opening the communication lines should be one of your first priorities as a property manager. From the very beginning, you’ll want to give off the impression that you are approachable and reliable. Do this by giving your residents a warm welcome such as a card or a minor gift. You can also include the following communication ideas in your methods for property management in Taunton.
Promptness – when a resident is trying to get in touch with you, don’t linger. Get back to them as soon as possible so they know that you care about their concerns.
Multiple methods – instead of handing your new tenant a business card, why not first ask them how they would like to maintain contact? This could be via text message, phone call, email, print out or a special system.
Social Media – you can also create a social media group, for multifamily homes. This way, you can consistently update them on what’s new. This is also a fantastic way to make sure important information reaches your tenants.
By being a top-notch communicator, you will instill a sense of trust in your residents. They will feel well cared for, and in turn, they’ll want to continue doing business with you. Furthermore, with your diligence and helpful tools, you can give the resident a sense of belonging.
#2 Establish a Sense of Community
As it turns out, residents are much more likely to renew their lease if they experience a sense of belonging. Hence, tenants are less likely to move out if they enjoy their community. Create a feeling of community by encouraging your tenants to gather and socialize. Here are some ideas that you can try:
Social events – create simple events that will encourage residents to leave their homes for a while. For example, a holiday party, sports tournament, contest, competition or discounted trip can draw residents out.
Educational programs – lots of people will attend a seminar about saving money, applying for school, credit management, and similar subjects. Providing important information and resources like this shows your residents that you care. Furthermore, it creates a common ground or topic of conversation between two tenants.
Common Areas – Where else would you host all these resident events? With access to a common area, the more social tenants are likely to come out of hibernation. Supply quick essentials such as a coffee machine, food menus, a public phone or some comfy chairs. You can also add entertainment like a pool table, a public computer, or a television.
In fact, providing updated technology is an easy way to impress your tenants.
#3 Install Updated Technology
Considering that fact that 56% of renters are millennials, it’s a smart move to accommodate their technological habits. Even beyond millennials, most people find up-to-date technology to be an attractive home feature. Furthermore, some shiny new tech can make an old apartment look as good as new. Here are some quick examples that property management associates can try:
Online Payment – allowing your tenants to pay rent online will make life easier for everyone involved. If you discuss your expectations beforehand, this can be a smooth new development.
Communication portal – creating a platform for communication purposes, will positively influence the flow of communication. Consider a website, mobile app or both.
High-Speed Internet – these days, hooked up wi-fi is an expectation for many prospective renters.
Updated Bathroom – Adding nice touches in the bathroom such as a luxury shower head or an automatic soap dispenser will attract more tenants.
Similarly, some desirable amenities will increase the value of the property and keep residents coming back.
You can also read: Safety Tips Owners and Tenants Should Know While Renting Out Property
#4 Offer Favorable Amenities
Who wouldn’t love to rent out a place with a few cool perks? Nowadays it’s the apartments with added bonuses that are getting all the attraction. Your job as the residential property management professional is to identify features that tenants would prefer. Generally, the amenities, in some small way, make life easier. Here are some examples of those features:
Parking – Over 90% of renters state that parking is one of the most important amenities that a place can offer. This is especially true in larger cities where parking spots are scarce.
On-site laundry – Save your residents a trip to the laundromat. They will be forever grateful. It’s also another way for the owner or property manager to profit.
Gym – Encourage your residents to live a healthy lifestyle! A gym can increase property value and also present opportunities for health and fitness events.
Energy efficient additions are another way to support a healthy lifestyle for your tenants.
#5 Consider Energy Efficiency
Families spend over $2,000 on their energy bill each year. For this reason, eco-friendly and energy efficiency assets are highly attractive. This is especially true of Millennials, who make up more than half of the renters market these days. The pros outweigh the cons, as it is good for the environment and, generally saves everyone money in the long run. Some ways to make the home energy efficient include:
Recycling – provide your tenants with recycling bins and coordinate the removal of the materials. Some tenants will be appreciative of the gesture, and not to mention, it is also the right thing to do!
Appliances – Energy efficient appliances save tons of energy and water, which in turn saves both you and the tenant money. You can identify an energy efficient appliance by the blue energy star label.
Lights – Installing motion sensor lights and compact fluorescent light bulbs will drastically cut down on electricity use and expenses. You can also opt for solar panel installation or natural lighting, both of which your tenants will appreciate.
Similarly, you can find ways to show your tenants you appreciate them too.
#6 Express Tenant Appreciation
Everybody likes to feel acknowledged from time to time. Show tenants, you care by giving them small gifts. You can do this upon move in, during the holidays or as an acknowledgment of milestones that have been reached. Even if there is no special occasion, you should find little ways to thank your tenants for being great. Here are some gift ideas:
- A Gift Basket
- Gift Cards
- Free professional cleaning
- Rent discount
Get creative with your gifts! They don’t have to be pricey, but a little thought will certainly go a long way. In fact, when it comes to resident retention, it is the little things that matter the most. Showing residents, your care is not so difficult. Rather, it can be a positive experience for both parties involved. Therefore, if you want to enhance your property management services, you can follow the above-listed strategies.