How to Hold on to Good Tenants in your Property?
It is the desire of every property manager to find good quality tenants to their property. They know that these tenants not only pay rent on time but also stay in the property for a long time. These tenants prove critical for their business. Some property managers ask for referrals from their good tenants while some have reward programs for their good tenants.
Good tenants live peacefully and pay their rent on time. They also take good care of property. Therefore, they are valued so highly by property managers. A tenant leaving and getting replaced by another is a costly exercise that means loss of nearly $3-5k. Vacancy also requires efforts in marketing. Therefore, holding on to good tenants or tenant retention is so important.
There are many strategies to catch and hold on to good tenants. One of them is tenant retention program. By rewarding good tenants, you are investing in them. But you must remember that tenants will not stay on just because of your reward program. Tenants look at many different aspects such as location, amenities near property, services offered, and so on before deciding to stay inside a property.
However, being rewarded is a feeling that makes a good tenant feel happy. He understands that it is a token of appreciation for his good and honest behavior. There is nothing more important for a tenant than to be valued highly by his landlord. It helps in developing a solid relationship that continues for a long time and brings in more tenants through referral for the landlord.
Therefore, you can boost chances of good tenants staying in your property if you can implement a solid tenant retention program. But what really is a tenant retention program? These programs are designed to keep tenants happy and encourage them to stay on for long time periods. You can give a gift car or certificate to tenants who have paid their monthly rents on time for a full year. You can also credit the accounts of good tenants as a token of appreciation for their timely payments.
Another popular way of rewarding good tenants is to implement a referral program. You can put cash into pockets of your tenants who refer more tenants to your property. Do not forget to place the condition that incentive would only be released when the referred tenant signs the lease with you.
Just keep in mind that tenants are like ordinary individuals who feel happy when appreciated for their good behaviors and habits. They are looking for an opportunity to earn extra money. If this money comes from being good, they will be encouraged to being good and stay longer in your property.
Make your tenant retention program a fun filled exercise for your tenants. It should consist of goals so that they are always encouraged to reach these goals to earn reward points. The amount of money you spend on tenant retention turns out to be lesser than turnover costs.
If you’d like to talk more about the value of inspections, or you need help with Everest Property Management, please contact us at Everest Realty.