- High tenant turnover rate in the US due to rent increases, poor maintenance, inadequate communication, and amenities.
- Property safety is a crucial factor to consider for tenants’ satisfaction and retention.
- To increase tenant retention rates, ensure proper parking lot maintenance, and create an attractive online presence.
- Offer flexible lease terms with renewal bonuses or discounts for long-term leases.
- Invest in good property maintenance for better living experiences and tenant satisfaction.
Being a landlord comes with a lot of responsibilities. With tenants constantly coming and going, one of the most prominent challenges landlords face is keeping their tenants happy and retaining them for extended periods. It’s no secret that a high tenant turnover rate can be extremely costly and time-consuming for landlords. Here’s what you need to know about tenant retention in the country, why it’s so difficult to keep tenants, and how to improve your tenant retention rate over time.
Tenant Retention in The U.S.
It’s estimated that Americans move around eleven times per year. This can be attributed to various factors. All these factors have resulted in a high tenant turnover rate in the U.S., with some estimates placing the annual turnover rate at around 80%. Here’s a deeper look into why it’s such a struggle to retain tenants in the country:
One of the main reasons why tenants may be hesitant to renew their lease or even sign a new one is that landlords often raise the rent price. It’s estimated that the average rent of two-bedroom apartments has reached over $1,300.
While it’s understandable that landlords would want to increase their profits, it’s important to remember that raising the rent too frequently or to an unreasonable amount can cause significant financial strain on tenants. To avoid this problem, landlords should be transparent about rent increases and communicate with tenants before changing prices.
Just like any other property, rentals require ongoing maintenance. If tenants have to constantly put up with clogged pipes, broken appliances, or poor communication about how the issues will be resolved, it’s no surprise they won’t be eager to renew their lease.
Tenant retention depends greatly on the landlord’s ability to meet the tenant’s basic needs. By investing in good property maintenance and being responsive to tenants’ concerns, landlords can create a better living experience, leading to higher tenant satisfaction and retention.
Effective communication can make or break a tenancy. Landlords will likely feel ignored or neglected if they fail to communicate with their tenants regularly or promptly respond to concerns or requests. This lack of communication can lead to a breakdown of trust between landlords and tenants and ultimately decrease tenant retention. The key to good communication is being proactive and responsive to tenant needs and ensuring they feel heard and valued.
Today’s renters have different needs than in the past. They expect specific amenities such as Wi-Fi, laundry facilities, parking, and other services that landlords may not have considered necessary. A failure to provide these services can quickly lead to tenant dissatisfaction and decreased tenant retention. To address this issue, landlords should carefully assess what their tenants want and need and invest in amenities that can help differentiate their property from others in the market.
Another crucial factor that can impact tenant retention is property safety. Tenants want to feel safe and secure in their homes. If issues like old wiring or locks don’t work correctly, tenants will understandably feel uneasy.
A property that prioritizes safety and security will ultimately attract higher-quality tenants willing to pay more to live there. Landlords can invest in good security systems, create clear emergency guidelines, and perform regular safety checks to ensure their properties are secure.
Tips to Increase Tenant Retention Rate
You must deal with the problems above to retain more tenants. Here are three other tips you should follow to increase your rates further:
A decent chunk of apartments and residential rental properties lack parking spaces. This can be a significant issue in cities where people rely on cars for their daily commute. However, having a parking space isn’t enough to retain tenants. You must maintain them properly. Hire a local asphalt contractor to help you. They can check your parking lots annually and ensure they are correctly maintained over time.
Online Listings and Reviews
A good online presence is vital in attracting potential tenants. Landlords should create an inviting website with all relevant information about the property and pictures so that renters get a better idea of what they’re getting into before signing a lease.
Additionally, encouraging former tenants to leave reviews on websites like Yelp or TripAdvisor can help attract new tenants and boost your reputation.
Flexible Lease Terms
Most leases are non-negotiable and inflexible, but offering tenants the option to renegotiate lease terms can lead to better tenant retention. Offering a one-time “renewal bonus” or discounts for long-term leases could incentivize tenants to stay longer.
These are just some ways landlords can improve their tenant retention rate. With some effort and knowledge, you can successfully keep your tenants from year to year and enjoy all the rewards that come with it!