In 2019, the average resident turnover rate in the multi-family residential industry was 51%. Multiple factors affect the resident turnover rate, such as median household income, increased property options, poor communication between the landlord and tenants, etc. However, while retaining all your tenants forever is impossible, resident retention is a critical aspect of property management.
Long-term vacancies lead to lost resources, loss of monthly rent, and increased investment in finding suitable renters. Thus, property managers should adopt best practices that satisfy their renters and compel them to elongate their stay.
This article will discuss some of the best ideas and tips to help you increase resident retention. Let’s get started!
Top 8 Tips To Increase Resident Retention
1. Open Communication
One of the best ways to increase resident retention is to maintain open communication. Establish good communication by listening to your tenant’s concerns and complaints and acting on them appropriately.
Create a sense of community by hosting property events and meet-and-greets for new residents so everyone in the apartment complex can get to know each other and get comfortable with the place. Building community residents feel comfortable in will make it harder for them to leave.
2. Superior Maintenance
If you let property maintenance slide, you can kiss your tenants goodbye. Happy tenants mean increased resident retention, and well-kept and clean property is a top priority for all tenants paying a hefty maintenance fee to live in your apartment complex.
If you are self-managing a property, it can become increasingly difficult to maintain it while you handle the day-to-day activities of owning a property. You might, as a result, overlook tasks like plumbing, cleaning, etc. Here is where property managers step in!
Property managers have a vast network of vendors that can resolve tenant complaints and maintain the apartment complex at affordable prices. A well-managed property shows tenants that you value them and their concerns.
3. Adopt New Technology
Technology is a major part of our lives and is incorporated into everything we do. Thus, it is no surprise that residents are looking for technologically-advanced apartment complexes. Embracing technology will help you increase resident retention by maximizing security, simplifying access, and building trust.
For instance, you can make your tenants feel secure and protected by introducing smart locks, keypads, and video intercoms. Moreover, you can also create an online portal, accessible through mobile and web-based browsers, where residents can communicate, share complaints, and pay their monthly rent. This optimizes workflow and reduces property management hassles.
4. Keep Residents Informed
Poor communication is one factor that has the biggest impact on the resident turnover rate. Keeping residents informed about everything around the property can increase satisfaction and build a sense of community and value. Use different methods of communication such as newsletters, SMS, portal alerts, or brochures to keep tenants in the loop.
5. Offer Property Upgrades
Another way to reduce the resident turnover rate and increase lease renewal chances is to offer property upgrades. Maintaining the property is a surefire way to win tenant approval, but offering special upgrades, like a new paint job, new kitchen appliances, etc., can win you bonus points. Your residents will definitely consider all these benefits before their lease ends.
Carry out a survey and ask for feedback or improvements that will improve your tenants’ standard of living and ensure these changes are implemented over time to increase resident retention.
6. Appropriately Priced Units
The key to success and resident retention is appropriately priced rental units. Pricing too high will lower the pool of candidates, while pricing too low will make applicants suspect that the management and maintenance aren’t top-notch. When you price your rental units too low, you also lose out on a significant amount of monthly rent. Finding the balance is critical for property management.
Hiring a property manager can reduce vacancies and ensure maximum profit. For instance, property managers know what your area is worth and what your target audience is willing to pay. They help set rental prices and develop effective marketing strategies that lead to the right tenants, getting paid on time, and increasing your passive income.
7. Resolve Complaints Quickly
Your residents want to feel valued and heard. Thus, listen to their concerns, what they have to say, their feedback, and their suggestions and act on them. Be responsive and ensure all necessary steps are being taken to resolve complaints. Even if you can’t make a change, knowing you empathize with them and are willing to work on it is more than enough to keep your residents satisfied.
8. Maintain Distance
No matter how good of a landlord you are, tenants don’t want to hear from you constantly or let you get involved in their lives. Maintain your distance and respect their privacy and your duties as the property owner. Be cooperative, listen to their concerns, and keep the property well-maintained.
These tips to increase resident retention work well, but a single person cannot handle all of these responsibilities individually. Thus, hiring a property management company and making use of their expertise and skills is undoubtedly the best way to go.
Property managers have the tools, resources, and vendors necessary to resolve tenant complaints, become a buffer between the landlord and tenant, and keep the property well-kept.
