As a property owner, it should be your quest to find and retain long-term tenants.
You’ll save money, time and stress by avoiding the marketing campaigns and skipping the process of building solid relationships with new tenants.
Also, long-term tenants are typically high-quality ones who pay their rent in a timely fashion and don’t cause property damages. They’ll provide you with a steady stream of income and you’ll have a better experience overall.
But the question that remains is: how can you find long-term tenants, and how can they willingly continue to renew their lease? In this article, Signature Choice Realty will explore just that!
1. Guard the Privacy of the Renter
Any tenant will appreciate having privacy. As a property owner, never drop by unexpectedly to conduct an inspection, don’t eavesdrop on conversations and avoid watching their every move. You want to give your renters space, freedom, and of course, privacy.
You must follow the privacy laws and know your boundaries. If you need to conduct regular inspections, you need to provide reasonable notice. The amount of notice required is different from state to state. You are not permitted to enter the renters’ premises without permission and scheduling beforehand, unless it’s an emergency.
Be respectful and considerate, and openly communicate with your renters when you want to conduct inspections.
If your tenants feel as though you honor their privacy, you can expect them to continue renewing their lease once it expires.
2. Set the Correct Rental Price
You want to advertise a rental price that's 2-3% below the market value of your property. Although this may sound counterproductive, there’s logic to this strategy.
In doing so, you capture a wider pool of prospective tenants. If you have plenty of prospects, you’re bound to find one that is very high quality. Also, once they are attracted, it’ll be hard for them to leave and find another rental property as yours is at the best price. This will ensure that you receive a steady income for the long term.
To start, check out similar properties in your area and find out the competitive rental prices. Once you determine the average rent, you can set your own property price a little lower, so you’ll get more applications.
But remember, if you set the rent too low, you’ll only receive applications from unreliable applicants who’ll terminate the lease early or worse, commit a breach of contract.
This pricing strategy is bound to attract serious tenants who can afford to stay longer in your property. As time passes, it’s normal that you will increase your rent in small increments, so you don’t lose out. You could also negotiate for a longer leasing term. This way, your income for future years is predictable.
3. Be Responsive to your Tenants’ Requests
If you wish to retain your renters for the long term and keep them happy, take care of repairs right away. Don’t wait until the last minute.
By showing your tenants that you care about their needs, you will make them feel important, and they will want to continue living in your rental unit.
Aside from maintenance requests, some tenants may wish to repaint the rental unit or redecorate. Listen, exercise open-mindedness and if you’re able to, allow the tenant to make little changes. Making the property customized to their wants will make them more comfortable in the unit. Thus, they will want to stay there longer. Allow personal changes and listen to their preferences.
Finally, some tenants may also desire a pet-friendly unit. Determine whether you can accommodate the request or negotiate certain requirements. If you deem the requests reasonable, then you can always choose to loosen your policies.
Giving your tenants certain things to make their stay more comfortable will increase their chances of renewing the lease.
4. Cultivate a Solid Relationship with your Tenant
It’s important to build a good landlord-tenant relationship.
Here are some of the advantage of having a good relationship with your renter:
- It’s easier to implement policies.
- You have a partner who will perform his tenant duties consistently.
- The tenant will stay longer since he respects you and would rather avoid another adjustment period with a new property owner.
In order to cultivate this relationship, don’t just show up to collect your rent every month.
You must find time to talk with your tenants. Get to know them in a respectful manner and occasionally send them little gifts during the holiday season such as vouchers and movie tickets. This will show them that you appreciate and value them as your tenant. It will also make them feel that your relationship is not purely transactional.
Creating an environment where your tenants feel happy with your services will inspire them to stay for the long term. Being considerate, remaining respectful towards their privacy and nurturing a great landlord-tenant relationship will go a long way. You’ll have a cooperative tenant and they will have an attentive landlord. It’s a win-win scenario for both!