It can be tough to find quality renters in today’s rental market. If you find a diamond in the rough, you’ll want to retain that occupant for as long as possible by using effective renter retention strategies. Otherwise, you’ll have to face the stresses of tenant turnover.
Retaining long-term renters maintains a continuous stream of rental income and spares you the pressure of filling a vacancy and finding new tenants. Plus, it allows you to build close, trusting relationships with occupants that will encourage good behaviors like paying rent on time and taking care of your property.
Here are 10 tenant retention strategies to keep your occupants satisfied and your income consistent.
- Address maintenance early and often
- Get familiar with what tenants want
- Stay flexible
- Be consistent with rules
- Offer renewal upgrades
- Provide rental incentives
- Build a strong landlord/renter relationship
- Gift a welcome package
- Be proactive around renewing
- Stay competitive in the market
Average Costs of Renter Turnover
We all know that losing a long-term renter can interrupt income flow. But unfortunately, the financial losses don’t stop there. Total renter turnover costs range from $1,000 to $5,000 on average, with fees from cleaning services, property repairs, and rental advertising. On top of that, you’ll also have to absorb utility and mortgage costs until you find a new tenant.
The extent of your turnover costs will depend on numerous factors. If you’re lucky, your renter will tidy up the property during move-out and restore it to a move-in-ready condition. This is to be expected if a renter wants their security deposit back. However, some occupants might not be so courteous, in which case you might be left with costly property damage and hefty cleaning fees.
As a landlord, you can account for renter turnover costs by evaluating the following factors:
- Administration: hiring a lawyer to help create a new lease for your next occupants
- Marketing: advertising your property by enlisting a property manager or realtor to take care of online listings and word-of-mouth exposure
- Cleaning: restoring a rental to move-in-ready condition by disinfecting surfaces, cleaning appliances, removing stains, disposing of trash, etc.
- Property repairs: repairing damage from previous occupancy, such as holes in the walls, chipped paint, etc.
- Vacancy: absorbing mortgage and utility expenses until a new tenant signs a lease
We recommend following a turnover checklist when preparing your unit for a new occupant. This will ensure the property is in peak condition, making it easier to attract new applicants and fill your vacancy sooner. You can create your own list or download this PDF for a rental turnover checklist template.
How to Keep Your Renters Happy for Longer
Being a landlord is more than just providing a place to live. It also involves keeping tenants happy by staying on top of maintenance, being a clear and consistent communicator, and making an effort to build a strong landlord/renter relationship.
Keeping residents happy is easy with the right retention strategies. Below, we’ve listed some of our top tenant retention strategies to reduce renter turnover.
Address maintenance early and often
Ignored or delayed maintenance requests can be very frustrating for residents. Whether it be a leaking refrigerator or broken air conditioning, unit repairs can really inconvenience renters and change their outlook on their landlord and the property itself.
As a landlord, it’s your job to address maintenance requests early and often. Otherwise, you might push your tenants to the point of breaking their lease. Some property maintenance to keep on your radar should include:
- HVAC servicing
- Electrical maintenance
- Water damage
- Roof maintenance and replacement
- Pest control
- Lawn and garden care
- Mold/mildew removal
- Drywall patching/painting
- Septic repairs
- Smoke detector/carbon monoxide detector maintenance
- Fireplace/chimney cleaning
Some maintenance tasks will require professional help, while others can be done at home. If a repair is out of your wheelhouse, make sure to find a contractor you can trust to get the job done. Doing so will ensure your property and occupants are in good hands and minimize the risk of additional repairs down the road.
Managing maintenance requests is easy with Apartments.com. Using our online platform, renters can submit maintenance requests. You will then be notified of these requests and be able to easily update tenants on repair progress by attaching receipts, uploading notes, and sharing images/videos related to the repair. With our tools, you can keep renters in the loop—another great way to increase renter satisfaction!
Get familiar with what renters want
Speedy Wi-Fi, in-unit laundry, and open floor plans --- these are just a few popular amenities among current and prospective renters. As a landlord, it’s important to familiarize yourself with current rental trends to retain long-term renters. Otherwise, your renter might decide to look elsewhere for a rental with better amenities and livability.
According to a recent survey by Apartments.com, in-unit washers and dryers, efficient air conditioning, and dishwashers topped renters’ amenity wish lists for the first half of 2024. Other amenities on renters’ radars included off-street parking or garages, private outdoor spaces, pet-friendly policies or features, and fitness centers. Keep these amenities in mind when renewal season approaches. You might need to do some renovations to lock in your tenants for another lease period.
Stay flexible
Renters appreciate when their landlords are flexible. Some renters might need special accommodations, such as modified moving dates, waived pet fees, or temporary sublets. By being flexible and open to accommodating your renters' needs, you not only build a stronger relationship with them but also increase the chances of them renewing their lease. It’s really a win-win situation!
When being flexible, make sure to maintain clear communication with your renter to avoid potential misunderstandings. We recommend documenting any modifications or special accommodations in writing to set clear expectations. This way, you can maintain flexibility while preserving the integrity of your lease agreement and your relationship with your tenant.
Renters are more likely to cross boundaries without written evidence of accommodations or lease adjustments. For example, if you accept late rent on more than one occasion, your tenant might think it’s okay to pay rent late the next month, the month after that, and so on. In this case, you should outline your expectations early and in writing to ensure your renter doesn’t take advantage of your flexibility.
Be consistent with rules
Consistency is key to tenant retention. For a landlord, this means conducting regular inspections, enforcing lease guidelines, and treating tenants with respect. For example, if your tenant raises a concern about a maintenance issue like a leaky faucet or faulty appliance, you should address their concerns in a timely manner and keep them updated on repairs. This not only shows that you take your responsibilities seriously but also that you value their comfort and satisfaction.
Another way you can display consistency is to enforce rules. For example, say your lease agreement states that the tenant is responsible for lawn maintenance. However, you noticed that the lawn is overgrown when driving by. In this case, you should address your tenant directly and ask them to abide by the leasing guidelines. Being upfront and consistent with your rules demonstrates your commitment to maintaining a good living environment for tenants.
Offer renewal upgrades
As mentioned above, renters place a lot of value in a property’s amenities and features. Whether it’s upgraded light fixtures or freshly painted walls, renters expect their homes to be well-kept and upgraded over time. Otherwise, they might start to consider certain home appliances or features outdated, driving them to look for rentals with newer renovations and upgrades.
Though renovations can be expensive upfront, they are well worth the investment. Not only will home upgrades further tenant satisfaction and loyalty, but they’ll also increase your rental’s value. In most cases, higher property value equates to higher rental income, meaning you can increase rent to accommodate for your property investment.
Provide rental incentives
Rental incentives, also known as rent concessions, are adjustments or compromises landlords make to attract or retain tenants. These can be rent rebates, monetary compensation, or physical goods or services that will improve a renter’s quality of life. For a landlord with long-term tenants, rent concessions are a great way to encourage lease renewals and reward tenants for good behaviors, such as paying rent on time or taking good care of the property.
The following are good examples of rent concessions to offer for tenant retention:
- Free or discounted unit upgrades
- Free or prorated month of rent
- Reduced rent for a one-year lease
- Waived fees, such as pet fees or utility costs
- Updated décor, new appliances, and other renovations
- Waived rules on painting walls
- Free use of on-site amenities that are typically paid for, like parking, laundry, or a storage unit
Build a strong landlord/renter relationship
Your relationship with your renter makes a world of difference when renewal season comes around. If you have a strong relationship built on trust, respect, and honesty, your renter is more likely to stick around for another lease period. You can build this type of relationship by maintaining clear and consistent communication with your tenant. This means notifying them before rental inspections, updating them on maintenance requests, and just being upfront about expectations altogether.
Gift a welcome package
Gifting a welcome package is a great way to start your renter relationship off on the right foot and, as a result, reduce tenant turnover. After a long day of unloading and unpacking boxes, renters could use a little reward to lift their spirits. Gifting a welcome package will instantly make renters feel at home and show them you care about their well-being. This small gesture of hospitality can go a long way in a renter’s eyes and set the stage for a strong and long-lasting landlord/tenant relationship.
Here are some gift ideas for your renter’s welcome package:
- Gift certificate to a local restaurant
- Bathroom staples like soap, tissues, paper towels, etc.
- Cleaning items like disinfectant spray, glass cleaner, sponges, etc.
- Welcome booklet and welcome letter
- Baked goods, chocolates, or candy
- Packs of adhesive hooks or command strips
- Furniture felt pads
- Plants either for floors or counters
Be proactive around renewing
As a landlord, you should always give your renter a heads-up when their lease is coming to an end. This way, they have plenty of time to think about their next steps and decide whether they’d like to renew. Most landlords will reach out to tenants at least 90 days before their lease expires. Then, at the 60-day mark, they will request a non-renewal notice if the tenant has decided to move elsewhere. Giving these notices in advance makes things easier for both parties, as it provides the renter time to reassess their living situation and the landlord time to find a new tenant if their occupant doesn’t renew.
Stay competitive in the market
Just because you have a tenured tenant doesn’t mean you should get comfortable. Instead, you should always act as if you’re at risk of vacancy. Otherwise, your long-time tenant might slip right through your fingers, leaving you with an empty property and turnover expenses.
To keep your tenants for the long haul, you have to stay competitive in your respective market. The best way to do this is to research local rental rates and amenities regularly. Use rent comparables to keep a pulse on competitive pricing and skim rental websites to determine which amenities and features are attracting tenants.
Apartments.com is a great resource for maintaining your rental’s competitive edge. We offer rent trend reports to help you navigate pricing, amenities, and renovation trends in your area. We also provide rent comp reports leveraging data from over 1.5 million listings. With these tools, you can make your rental a long-term contender with consistent tenant retention and maximum earning potential.
Find and Keep Great Tenants with Apartments.com
To keep great tenants, you first have to find great tenants with a thorough applicant screening process. From background checks to proof of income, a comprehensive tenant screening will ensure you hand off the keys to responsible, trustworthy tenants who are worth retaining.
Apartments.com simplifies the screening process with our expansive suite of Renter Tools. Our platform offers an all-in-one solution to list your property, manage applications, and conduct detailed screenings efficiently. By leveraging Apartments.com's advanced filtering options and built-in background check services, you can attract highly qualified renters you’ll hopefully retain for years to come.
