Brief Description: Stop wasting time and money trying to find new tenants and focus more on retaining the ones you already have with these proven strategies.
How much time do you waste looking for new tenants in Denver rather than trying to retain the ones you already have?
That’s the mistake most landlords make. They put more importance on finding new tenants to fill their vacant rental properties than getting their current tenants to renew their leases.
When you boost tenant retention, you can actually make even more return on your investment. Just think about all of the expenses that come with acquiring new tenants: cleaning the property, making repairs, advertising the listing, etc.
By putting more time and energy into creating stable relationships with current tenants and providing a pleasant experience, they are more likely to renew their lease with you.
In this article, we will dive into the ten best — and proven — ways you can boost tenant retention and earn even more revenue from your Denver rental property.
1. Open Communication
Communication is key when creating a stable landlord-tenant relationship. Your tenant should feel that they can reach you and receive a prompt response at all times.
Having open communication means setting a specific means of communication with tenants. Do you prefer to receive text messages, emails, or phone calls? What will you respond to fastest?
When your tenant has a question about the property or a maintenance request, they should be able to get a hold of you rather quickly. They should also feel that they can have a conversation with you about issues and concerns.
Setting a standard of open communication with your tenants in Denver will make them feel heard and valued. Therefore, they will have a more pleasant experience renting your property.
2. Prompt Maintenance
There is nothing more frustrating as a tenant than waiting days or even weeks to have something repaired in the property. Whether it’s a broken dishwasher, clogged bathtub, or a busted water heater, you should be prompt with maintenance requests.
It’s a good idea to have a network of repair services or be handy yourself, so repairs are made quickly. When you receive a maintenance request from your tenant, be sure to answer within a few hours and keep them updated on scheduling the repair.
The couple of times a landlord is dismissive or ignores a maintenance request can leave the tenant to consider moving out at the end of their lease.
3. Allow Tenant Adjustments to the Property
When a tenant rents a home, they may want to make some small adjustments and changes to make the space feel like it’s theirs. Renting another person’s property can sometimes feel strange and lack that “cozy home” feeling.
Allowing your tenants to decorate and make small changes such as installing shelves or painting the walls gives them the opportunity to make the space feel comfortable and match their personality.
When your tenant has put effort into making your rental property in Denver feel like home, they will be more likely to stay and renew their lease. It isn’t easy to recreate a feeling of comfort in a new place all over again.
4. Make Rent Collection Easy
When collecting rent from your tenants, do it in the easiest way possible. Today that means accepting an online form of payment each month. 56.9% of renters say that online rental payments are essential to them when leasing a property.
There are many ways you can collect rent electronically, including web platforms such as PayPal or mobile apps like Venmo. With just a few clicks of a button, your tenants can easily pay their rent.
5. Keep the Rent Price Reasonable
It’s tempting to raise the rent each year and list your property at the higher end of the market. However, if you want to boost tenant retention, giving your tenants a good deal is one way to do it.
A reasonable or even great rent price will surely keep a tenant renewing their lease because they’re nervous they won’t find another deal like it if they move.
Now, it’s still important to keep your ROI in mind when setting the rent price. Make sure all of your expenses are covered, such as property tax, service fees, and maintenance, and that you’re making some profit when setting the price.
If you feel that it’s necessary to raise the rent, then only do so by $25-$50 per month if your tenant desires to renew their lease. This amount usually won’t make too much of a difference to your tenant.
6. Offer Incentives for Lease Renewals
Maybe your tenant needs a little extra push to renewing their lease with you. This is the perfect opportunity to offer them an incentive.
An incentive to renew a lease could be a discount on one month’s rent, making an upgrade to the property, or including a utility bill in the rent.
Be sure to ask your tenants if they’re interested in renewing at least 60 days before the end of their lease. This gives them time to consider whether or not to renew. If they decide against it, you’ll have time to start looking for a new tenant.
7. Cultivate a Good Landlord-Tenant Relationship
There are too many stories of landlords and tenants getting along poorly. The tenants feel that the landlord is out to get them, while the landlord may feel that they have terribly irresponsible tenants.
Start cultivating a good landlord-tenant relationship by showing respect for your tenants and getting to know them. Have a conversation with them about their interests, hobbies, and work. The better you know them, the more comfortable they will feel with you.
8. Conduct Thorough Tenant Screenings
You only want to retain good tenants who pay their rent on time and keep the property well-maintained. To find high-quality tenants you’ll want to keep; it’s a good idea to have a thorough screening process before they sign a lease.
This screening should include a background and credit check, financial statements, proof of employment, and references.
9. Prioritize Privacy
While tenants may be living in a property that you own, it’s still important to respect their privacy. They have the right to live there peacefully, which means you cannot enter without notice.
Always give your tenants at least 24 hours’ notice before entering the property. When you’re there, don’t snoop through their belongings. Try to be as discreet as possible.
When your tenants feel respected and not simply a means for you to make an income, they will in turn respect you and have a better experience while renting your property.
10. Work with a Reputable Property Management Company
Hiring a reputable property management company can help you boost tenant retention in Denver.
Thanks to their professional experience and education in sales, real estate, and nurturing client relationships, tenants are more likely to renew their leases when served in a professional manner.
From managing tenant relationships to scheduling maintenance requests, a property management company can truly make a tenant’s experience a pleasant one.
Boost Your Tenant Retention Rate with KeyRenter Denver
KeyRenter Denver is the area’s leading property management company. With a valuable team of real estate professionals, we help property owners retain more tenants and increase their ROI.
With modern technology and proven systems, KeyRenter Denver takes the stress out of owning a rental property and provides a pleasant experience to residents.
Contact us today to discuss a strategy to boost your tenant retention — and your profits!