Better Tenant Retention
The Corona Virus slowdown continues to cause apartment managers higher vacancy rates, lower rent prices, and delays in rent, as well rent defaults.
Like it or not, the pandemic is creating changes in how property management will be conducted going forward. Remember the days of 98% occupancy and zero missed rents? Today, now landlords have to earn those numbers. Fortunately, with some property management techniques and a helpful property management platform, you have powerful tools for optimal tenant management.
Rent payment moratoriums won’t end until October. Your new tenant prospects will be hesitant about committing to current rent prices and signing long term leases. More tenants are reportedly seeking shorter-term leases and lower rent prices. They may be expecting apartment rents to drop.
Your challenge as a landlord or property manager is to hold onto the tenants you have, and ensure your future tenants are solid long term renters.
Managing the Threat
A tenant retention strategy when it’s written down can help you mitigate many issues such as tenant unease and excessive demands. Be proactive and keep your best tenants. From giving them some grace on rent payments to optimizing maintenance, to helping them avoid cheap apartment hunting, you can reduce the negativity and discomfort that generates a canceled lease.
Vacancies are Some of the Worst Losses in Property Management
One vacancy typically costs 1 to 2 months rent equivalent. It’s one of the costs that pains you and your property manager most, so it’s worth it to build a plan and strategy and spend some money on the effort. Here’s 5 good reasons:
- lost rent
- added advertising costs and time spent
- brokerage/leasing agent fees
- concessions to new renters
- protect your cash flow
2nd Half of 2020 is a Whole New Rental Market
The climate for rental property has changed. The Corona Virus hasn’t been defeated and a vaccine date is just a guess. As rent defaults and evictions/vacancies rise this June, the seriousness of all of this is going to come into focus.
How will you deal with it?
Please review our property management posts on tenant lease renewals, tenant management tips, tenant communications, keeping tenants happy, and how to reduce tenant turnover. These could be helpful as you devise on how to keep your current tenants leased.
Discomfort is the Real Cause
Comfort of the tenant is key. Tenants move not always because of financial pressure, but from a mounting feeling of frustration, pessimism, worry, hopelessness, disappointment, etc.
You could keep them leased by managing these feelings rather than passively watch them get fed up and leave. A move might actually not be in their own best interest.
Note: Using your property management software, you can maintain more active and supportive communications with them. Tenants believe the picture of value and comfort you share with them.
And by giving them an opportunity to express their feelings and circumstances, you might be forewarned of those who may give notice. This is where your property management solution can be very helpful.
What Can We Do to Retain Tenants?
What are some quick ideas on how to keep them leased, as their lease term expires this year?
- be respectful when speaking to them about late rent and the need to stay current
- reducing rent a little
- ensure they’re aware of all grants/loans available to them (personal or business)
- add a few perks for resigning the lease
- giving tenants 2 months grace to pay their rent
- remind tenants of how convenient, rare and safe your rentals are
- improve tenant communications to build a stronger connection
It’s great to rev up your imagination about how to keep tenants feeling content and comfortable. It’s going to give you the energy and optimism to create this plan and carry it out.
A tenant retention plan is helpful in structuring the assets you’ll use. A tenant retention strategy helps bring it together in a way that will impact your audience. You must begin your strategy development by taking your tenant’s point of view and considering the full value of what you offer them.
10 Things You Can do To Keep Tenants Leased
- respond quickly to maintenance and repair requests and follow up on tickets for total satisfaction
- ask tenants how they’re doing and if all is well in their unit, with their neighbors or the building and discover what is causing them discomfort
- review the things that make tenants happy and implement at least one of them
- put a focus on grounds or building security, and communicate the extra vigilance for crime to tenants
- add an amenity whether digital amenity or an in home feature
- take a visit to your building/multi-family residential building and make casual conversation to get up to date on what’s happening there
- remind all tenants (broadcast email or message on property management software) to be considerate to neighbors, watch out for safety of children and elderly, and keep social distance to avoid health issues
- conduct a survey and ask what improvements tenants would like
- be polite, courteous and professional — put yourself in a positive, caring frame of mind before you communicate anything to tenants, because the tone of your voice and conversation is what they hear
- offer gifts for on time payments during the pandemic (e.g. $20 food gift card)
If you have emotional intelligence as some call it, you’re apt to see what the real issues are with your tenants. That’s a big advantage to reducing the tension that causes tenants to end their leases.
Collect insights and feedback through your new channels, i.e., your property management software, and go with your hunches about where you might lose tenants.
This tenant retention effort is one of the processes that can really elevate your rental property management business. You’re managing people, and people like to be happy.
Find more property management insights on the ManageCasa Blog. Stay up on current news, technology, rental housing trends, management tactics and more. 2021 is a year of opportunity for your company.
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Further reading: Property Management | Loans for Property Management Companies | Property Management Companies | Corona Virus Disinfection Tips | Rent Payment Tips for Tenants | Corona Virus Property Management | Property Management Software | Landlord Software | Property Management Companies | Property Management Chicago | Property Management Los Angeles | Property Management Hawaii | Property Management Denver | Miami Property Management | Boston Property Management | Phoenix Property Management | Property Management Software Comparison | Property Maintenance | Property Management Apps | CARES Act Website