Once you’ve found great tenants retaining them is the key to earning a maximum profit as a landlord. Vacancies drain profits quickly, from the rental loss, advertising, to the repairs and cleaning. If losing hundreds to thousands of dollars is not part of your financial plan it may be good to consider some tactics to keep good tenants in place.
1. If your good (reliable, tidy, polite) tenant gives you 30 days notice without reason, follow-up with them, give them a call or schedule a time to meet in person to find out why they are moving, and see if there’s something you can do that will change their mind.
2. If your tenants tell you the rental is too small, you can offer to add some shelving and other space enhancing ideas such as adding a shed to the property. If you have a larger rental property you could offer to rent that to them once it becomes available.
3. If they tell you they want to move into a newer property you could offer to upgrade some appliances that are past there life expectancy or offer to paint or replace flooring if it’s something you would have to do when they move out anyways.
4. If your tenants are moving because the rent is too high, consider reducing the rent if they; sign up for auto pay, or if they sign a year lease, etc. Offering a $15/month discount may be enough of an incentive for them to reconsider. You could also consider paying the trash service or include internet service or something of that nature. Saving your tenants the hassle and expense of moving with a few compelling reasons to stay may be easier than you think.
In general, there are only a few things that are involved in a real estate rental business; the landlord, the rental property, the tenants. Tenants are one of the most important factors to consider, they will be looking after your property, paying for your mortgage, and ultimately building your wealth in real estate. Attracting and keeping good tenants is a fundamental piece of the business plan and it will determine whether your rental property business will be a success or a failure.