Any Palm Desert property management professional worth their salt will tell you that great tenants are worth their weight in gold. While it can be easy to find just “anyone” to rent a property to, good tenants will actually add value to your long-term income.
When you find a good renter, how can you keep them for more than one lease term? Keep reading to learn some of the best strategies for improving tenant retention and boosting returns!
A property manager can tell you that good tenants pay their rent on time, follow the rules in the lease agreement, and rarely create problems. For a rental property owner, the advantages of having tenants like these can’t be overstated!
Paying the rent on time means that there are never any hassles with trying to collect rent, arguments over late fees, and no months without rental income. If they can follow the rules in the rental agreement, property owners don't have to worry about additional damage or problems with the neighbors. In addition, good tenants don't create problems during their tenancy. While every renter has routine maintenance requests at times, good tenants don't go out of their way to find problems in a property or create issues.
When finding excellent residents, it's worth the time and effort to keep them through more than one lease term. Whenever a property has to be shown to find a new resident, a landlord loses rental income and faces costs to market the property and get it ready for new tenants. Keeping a good tenant happy means getting to skip the hassle and expense of reshowing a property and avoiding the issues associated with putting a potentially bad renter into the property.
A quality renter wants to live in a well-cared-for home. Property owners can deliver that by keeping up with routine maintenance, conducting property inspections to catch potential repair needs, and following through with timely updates as the home ages. Routine inspections show residents that you care for the property. Even if there's nothing wrong during an inspection, it’s an excellent way to connect with residents and make sure they’re comfortable in the property.
Renters appreciate feeling heard! Property owners can improve retention by listening to concerns or maintenance requests and responding promptly. When residents experience delays for critical maintenance issues or feel like their concerns aren’t being heard, they’re less likely to stick around for a property owner that doesn't seem responsive.
Lock in your good tenants to another lease term as soon as possible. With your very best residents, it can be appropriate to offer them a two or three-year lease. With long-term arrangements, residents get to lock in their rental rate for the next several years, and you get a guaranteed renter you can trust and consistent income!
Sharp or frequent rental rate increases can drive good tenants away. While it’s essential to evaluate your returns and adjust the monthly rent amount as the market suggests, it’s also crucial to avoid significant rate increases that can price tenants out of your property.
While most tenants expect a slight increase when it’s time to renew, good renters are smart enough to always be on the lookout for rental homes and rates that fit their budgets. If your rent jumps too high too fast, they might decide to find another home at the end of their lease.
If a rate increase causes concern with a resident, consider waiving application fees or other incentives to encourage them to stay. In addition, benefits such as allowing a pet or small upgrades to appliances or fixtures in the unit can justify a rate increase for your renter.
If you own multiple Palm Desert rental properties, your good tenants might know other people who would also make good renters! Offer a small bonus to your renewing renters if they recommend a new tenant who signs a lease at another property in your portfolio. Provided the new prospective tenant can pass your tenant screening process, this can be an excellent way to keep good tenants living in your rental properties.
To keep good renters, it’s critical to place them in your rental properties from the start! Perform background and credit checks on prospective tenants to eliminate bad renters and find tenants that you want to renew a lease.
It's always better to wait a little longer for a good tenant than to rent a place to someone who will bring you nothing but headaches and income loss. The right Palm Desert property management company helps investors place better renters and improve renewal rates! If you’re searching for new tenants or strategies to keep your best residents longer, reach out to McLean Company to learn more about our property management services.