Trying to combat a high tenant turnover? Here are five reasons why your tenants won’t renew. Explore problems that turn tenants away, including communication problems, maintenance issues, minimal amenities, the high cost of living, and competition with other landlords and rental properties.
Landlords who have had the perfect tenants typically want to keep them around as long as possible. Tenants who pay their rent on time, respond to contact promptly, and take great care of their homes are highly valuable to many landlords, and you will want to keep these tenants around. However, some tenants will want to move out even if you don’t want them to, as a result of many factors.
Keeping tenants at your rental property can be challenging, but there are many ways to encourage tenants to renew. While not every tenant will stay for years just because of these factors, correcting possible faults is an excellent way to encourage tenants to stay longer.
If you’re struggling to keep tenants, consider these possible issues. Communication, maintenance, amenities, and cost are all important factors, and maintaining a competitive rental in your area is important. Here are the possible problems that could result in a tenant choosing not to renew their lease.
Poor Communication
Renters don’t want to live in uncertainty. As such, communication issues are a very common issue for tenants, which can result in them choosing not to renew their lease. If you ignore or forget about messages from tenants, they may start to think that you don’t care about your property or their experience. Think of this as a customer service element of your profession, where happy customers are more likely to continue using your business.
Learn more: Tenant Communication Tips | The Key to Avoiding Disputes
Maintenance Issues go Unaddressed
Tenants who need to address maintenance issues by themselves will often become frustrated with their landlords or maintenance workers. These tenants are much more likely to move out than tenants who are happy with their circumstances, so you must ensure your tenants live in a safe, well-maintained environment.
Respond to tenant communications promptly and politely, and be sure to address any concerns. Check in with your tenants periodically to ensure they are happy with their current living situation, and schedule regular walkthroughs to identify potential problems before they become more significant.
Learn more: What to do When Struggling With Maintenance Workers
Few Amenities
Tenants, especially young people, love to live in apartments with a lot of amenities. They want to live in homes with many benefits, have access to their interests, and be close to their jobs. As such, if your rental doesn’t have many amenities that tenants look for, you may find yourself losing tenants.
Consider adding easy amenities to your property to encourage tenants to stay longer. You do not need to offer big benefits in-home gyms or pool access, if you can provide benefits such as included high-speed internet, upgraded counters, or small bathroom fixtures that will encourage new tenants to rent from you. Benefits as simple as online rent payments can be a draw for many renters in some locations.
Learn more: A Brief Guide to Rental Incentives
High Cost of Living
Much of the U.S. is struggling with the cost of living, and renters are among that group, meaning that renters who can find cheaper places to rent will often jump on the best option. As such, expensive rent might be a reason tenants won’t renew.
The best way to avoid this is to ensure your rent is fair for the market you own it in. While some tenants may still need to move due to changing life circumstances, keeping your rent competitive in your market is the best way to minimize this tenant turnover. Additionally, keeping your rent increases fair is a good way to encourage tenants to stay, as significant rent increases can deter renters from renewing their leases.
Competition
Tenants, like everyone else, want to get the most out of their money. If your rental isn’t offering what others at similar prices do, you will lose tenants. This remains true for amenities, pricing, the quality of the living space, and many other factors. As a business owner, you need to keep your property competitive.
Tenants want to see clean, well-cared-for living spaces, desirable locations, and features such as pools, gyms, and other similar benefits. While your area impacts these desires significantly, most tenants simply want to get the best features possible for the lowest cost. As such, remember to look at the market when pricing your property. If your property has fewer features, damage, or less square footage than similarly priced units in the same location, it may be overpriced.
Final Thoughts
High tenant turnover can be frustrating, but it is a problem with many possible solutions. If you worry about any of these issues, consider addressing them with your tenants, or add them to your rentals before you advertise any empty properties to new tenants. By addressing these potential concerns, you can reduce your tenant turnover and ensure that your tenants want to stay at your property for as long as possible.