How to Foresee Tenant Departures
Why is it that good things must come to an end? Your tenants have worked out so well, they enjoyed living in your home or apartment, yet despite that bliss, they will decide to move on.
Yes, it’s so nice when people stay put, but everyone’s life evolves. Young couples have children and need a bigger place, people lose their jobs or have financial changes, professionals move for a better position somewhere else, and seniors move onto their retirement life.
It’s not easy to find another quality tenant who pays their rent on time, is respectful of your property, and be patient and available when maintenance needs to be done. Can you avoid some of these ROI eating losses?
Vacancy & Bad Surprises
Vacancies and turnover costs rank right up there with the events that ruin your property income ROI. Proactive management could save you thousands of dollars, per property. Passive management results in unforeseen costly events — your second highest ROI threat.
Millennials on the Move – Losing that Loving Feeling
Oh yes, a special shoutout for the Millennials. They may have found a cheaper, more modern rental with some great amenities. Perhaps the building, or neighborhood is changing or going downhill. They’re all signals of tenant turnover. Sometimes tenants make a bad move and move onto another rental, where they’re less happy. Live and learn.
When times are good, people are on the move, especially Millennials, your main tenant market. It could be the opportunity they’ve been waiting for. And sometimes, circumstances and the status quo changes, which takes away the joy they felt for a town or a community. Some Millennials have an itch to travel.
More millennials are buying homes of late, moving from city apartments to the suburbs where they begin raising a family. They’re all in that phase of life, so your Millennial renters will be moving on as soon as they can find a place to buy.
It’s true that many have given up on the housing market and can’t find affordable homes, but their changing lifestyle will pressure them to seek larger and kid friendly living spaces.
Things Were Happening But You Didn’t Know
Perhaps good friends leave or a family member dies. Somehow, they don’t feel the same way about living in your property and they lost interest.
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You can always take this passively and let good tenants slip away. But if you were in touch with them, and getting constant feedback, you’d know the signs they are progressing toward that fateful moment when they tell you they’re leaving.
15 Key Signals That Tenants Might be Leaving
- more similar types of rentals are being advertised
- other landlords are getting agressive in their promotions
- your amenities are old school and you are way late in upgrading
- you haven’t spoken to them in a long time and they’re trust is beginning to wane
- you took way too long to do some maintenance or repairs
- they appear frustrated and discontented
- some close friends or relatives living nearby have passed away
- they’re visiting their adult children in a far off city more often
- the tenants disregard your calls and communications
- you’ve raised the rent recently
- they’re a millennial and they’re doing well enough financially that they’re about ready to buy a house
- your appliances, home equipment, kitchen/bathroom have aged and don’t work well
- they’re not getting along with their neighbors
- they’ve suffered an injury and can’t get around well
- the yard is not being maintained
Proactively Manage this Vacancy Threat
As a smart, proactive landlord or property manager, you need information. Driving by the rental unit to see external signs, keeping in touch with the tenant, and asking them questions about the home is your way of collecting information.
Do a maintenance call so you can engage them in conversation about how their lives are going. There’s nothing wrong with you knowing whether they’re going to leave or why they might not be really happy. On a personal and professional level, it’s highly responsible.
How about Using an Online Tenant Management System
Another way to keep in touch is using a tenant management system. This software platform, such as ManageCasa, increases communication. The tenant can view their lease, ask questions, ask for some unit maintenance, or express their frustration.
Any feedback you can capture is good, so let the renter speak. The best thing about online tenant management is events are collected, which allows you to gauge your tenant’s interest in staying.
Take a good look at ManageCasa’s tenant management features and you’ll see the communications value right away. Get connected and you can find ways to keep them happy and keep yourself financial happy.
See also: Property Management Software | Best Property Management Software | Housing Market Outlook | State of Property Management Report | Property Staff Management | Property Management Cloud | Colorado Multifamily | Denver Housing Market | Rental Property Software | Property Maintenance Tips | Property Management News | Definition of Property Management | Tax Tips for Rental Property Managers | Tenant Screening | How to Use Rental Property Software