In certain lines of work, turnover is good for business. In the rental market, however, high tenant turnover can mean empty units, lost revenue, and a host of potential problems. Finding a good tenant is difficult enough without having to replace them with another, equally good tenant every year. How do you ensure your quality tenants stick around? We have some advice.
We’ve said this many times, but it always bears repeating. It’s so important to do proper research into your area’s rental market and make sure you’re pricing yourself competitively. The amount of rent you choose to charge will depend on numerous factors, including the type of property, amenities, location, target renters, and others. When comparing your properties to others in the area, make sure you’re keeping these factors in mind so that you’re setting your rent appropriately. If you go too low, you risk tenants with less impressive credit records. If you go too high, you’ll price people out of the market and lose potential long-term tenants who can find another nearby unit for a better price.
Make Payments Simple and Digital
Want to make sure your tenants don’t miss payments? Make it easy for them to remember and pay rent. There are a number of ways to do this now, including online payment portals and text reminders. Sometimes you have a good tenant on your hands that just needs a little help staying on track.
Use Tenant Screening Services to Find a Good Match
One of the best ways to ensure you find a good tenant for your property is to use a detailed screening service to get a full snapshot of the tenant’s background and credit history. While screening can’t tell you everything, it can fill in enough of the gaps to give you a solid idea of who pays on time and has a job that will keep them in the area for more than a year.
Be Open to Families
People with families are more likely to want to put down roots and stay in one place for a longer period of time. Keeping children in the same school district for multiple grades is important, so many families will be looking for a home or apartment they can rent while their children are in school. When selecting you target rental market, it’s a good idea to be open minded about families with kids.
Offer Incentives for Longer Leases
Want to lock in a tenant for a longer lease and keep them around? Give them “rewards” for doing so. Consider offering cash back on some of their rent after a year, or giving small “thank you” gifts, like a cash card. It’s a small, relatively minor expense that pays off in the long run by keeping a paying tenant in your unit for a longer period of time.
We recommend our RentalConnect program as an added tool for selection the right tenants for your property. RentalConnect offers property owners and landlords a great alternative to the expense of full tenant screening. This service requires no on-site visit, sign-up, or membership fees, making it extra convenient. The $34.95 service fee is paid by the applicant. Available 24/7, RentalConnect is fast, easy, secure, and delivers reports needed to make an informed decision, including a credit report, a national criminal search, and a national eviction search. Reach out to us for more details!
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