If you’ve been looking to get into the real estate industry, then building a rental income is one of the most attractive and potentially lucrative ways to go. However, that’s only the case if you’re able to keep tenants in your buildings. A lot of landlords have trouble doing just that, and often they aren’t sure why, exactly, that is. Here, we’re going to take a closer look at some of the main causes of poor tenant retention and what you can do to turn it around.
Unpredictable Or Frequent Rent Increases
Rent hikes are perhaps the leading reason that tenants move out of a property. If you do it too often or without a clear justification, tenants will look for more stable housing. Rent adjustments are sometimes necessary due to rising expenses or market conditions, and communicating these with tenants can help to alleviate their frustration, but it’s important to try and keep them as structured as possible so that they don’t feel like they’re constantly being pressured to pay more, and to get a good idea of what similar properties in the area are charging.
Poor Property Maintenance
A lack of care in your property translates to a lack of care for your tenants. Interior issues, such as malfunctioning heating systems, drafty windows, and peeling paint, can make tenants feel like they’re living in a neglected space. Taking care of the exterior is just as important, such as using concrete repair services to fix any cracked or uneven walkways and driveways. You need to ensure that your property is not just compliant with your legal obligations to provide a safe and healthy living space, but meets the expectations of your tenants, too.
The Main Factors Harming Your Tenant Retention Rate: Slow Complaint Handling
Tenants are likely to have concerns, and when they do, if you don’t respond promptly to them, it can easily make them feel like you don’t care about their needs, comfort, or safety. It can lead to building issues with malfunctioning appliances and safety hazards that not only lead to disgruntled tenants (who eventually leave) but could put you at legal risk, as well. You have an obligation to ensure the livability of your property, after all. Most landlords don’t do this out of intentional neglect, but rather because they don’t have the time to quickly see to every complaint. Working with a rental management team can help take some of that burden off your shoulders.
Outdated Amenities And Features
Renters expect modern homes to meet modern demands for convenience, comfort, and quality of life. This can include having an up-to-date kitchen, reliable Wi-Fi, bathroom fixtures (such as showers), and even more cosmetic features like flooring and lighting. If the home looks old and feels old, then tenants are going to look for properties that don’t make them feel like they’re living in the past.
The above examples are just that. However, they are some of the most common examples, so it’s worth taking a closer look at your property and your rental strategy to ensure you’re not making any unforced errors that are keeping your property empty.
