What retains good tenants? Our company approaches tenant retention with the three R’s – Reasonable Management, Respect for Tenants, and Reward Good Tenancy.
Reasonable Management
We find that conducting reasonable management of the property is the first step. Offering fair market rent and conditions, providing a clean and safe environment, and practicing Fair Housing attracts “good tenants.” This starts everything off on the right track. Then, while the tenant is in the property, it is important to keep up maintenance, which discourages them from thoughts of moving to a “better” residence.
Respect for Tenants
Bad tenants and “slumlords” are the culprits who have created misconceptions about rental property. Everyone has heard the horror stories on how tenants have trashed the property, not paid rent for months, or sued the property owner. Conversely, many tenants feel the landlord and/or manager will not take care of the property, only wanting to raise the rent, while they (the tenants) are the ones really paying the mortgage. As property managers, we have heard it all.
Bad tenants and poor property owners do exist and create these misconceptions. Our experience is both are the minority; the majority of owners and tenants are decent human beings. It is important to treat tenants “with respect,” instead of expecting the worst.
Reward Good Tenancy
Next, reward good tenancy. There are many ways to do this – renewing their lease with the same rent or a reasonable increase; updating the property with new carpeting, paint, or a new appliance; rewarding them with a gift certificate during the year at an unexpected time. Rewarding and recognizing their good tenancy discourages the urge to move.
There are many reasons why tenants move despite using reasonable management, respect, and rewards. However, this approach will simply lead to other good tenants.
Refer your clients to us for “professional management” and we will work to maintain good tenancy and their investment. We can assist them, give them peace of mind, and when they are ready to sell their property, we refer them back to you.