As an Adelaide landlord, it’s your dream to find the perfect tenant – someone who looks after your property, pays rent on time and communicates well with you. When you find one, it’s only natural that you want to keep them in your home for as long as possible.
So what is tenant retention, why is it important, and what can you do about it? Read on to learn more about tenant retention strategies and five simple things you can do to keep your tenants for longer.
What is tenant retention?
Tenant retention is the turnover rate of tenants at one property. In simple terms, it’s the art of keeping high-quality, good tenants in your investment home for an extended period of time.
By maintaining good tenant retention, you can be sure that your property will be well looked after and maintained properly. And most importantly, good tenant retention ensures that your rent is being paid consistently and on time.
Why is tenant retention important?
Buying an investment property isn’t just a personal choice. It’s a business one. After all, why did you purchase that property anyway? The most common answer is to make a financial investment for the future and hopefully grow personal wealth.
To become a successful investor, you need to make money. And tenant retention plays a critical role in securing your financial future. By maximising your tenant retention, you can optimise your profit and save on any unforeseen costs.
Here’s how tenant retention can affect your overall investment:
- You’ll spend less money and time on cleaning and moving expenses in between tenants.
- You won’t waste time and money screening new tenants every time one moves out
- You’ll earn more money and increase profits as your tenants are less likely to move out, leaving your property vacant.
5 simple things you can do to keep your tenants for longer
Do a tenancy background check
We recommend investing in a reputable agency to help you find the right tenants for your property – tenants who are easy to manage and show promise in staying for the long haul.
Tenants with good financial track records, full-time jobs and proof of consistent payments with their current financial obligations are the kind of tenants that are more likely to not just be good tenants, but tenants who are more likely to commit to a long-term lease.
Investing the time and money to find the right tenant from the outset will help ensure that you retain your tenant for longer. If you’ve hired a property manager, they can take care of the background check for you.
Create a supplier book for emergencies
Pull together a book of local contractors that your tenants can contact in emergencies. Having a go-to guide of suppliers you know, and trust who can fix and repair items in the home will make your tenants feel like they’re being looked after.
Be professional and understanding
Understanding is key. Communicating with your tenants regularly will help you build a stronger relationship with them. Being respectful of your tenants’ wishes and responsive to their needs is a simple strategy that’ll help you keep them for longer. It’s a good idea to check in with your tenants on a semi-regular basis to ensure they are happy with their home, the neighbours and the rental agreement.
Let your tenants know the best way to communicate with you and be as responsive as possible. If you can’t address their needs right away, let me know when you’ll be there to help.
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Respond to maintenance and repair requests quickly
Have you ever stayed at an Airbnb and had something break through no fault of your own? You contact the property owner, but, alas, no response. You’re left feeling annoyed and frustrated by the poor communication and the inconvenience of a broken kettle.
Responding to maintenance requests is probably one of the most important things you can do as a landlord. There’s nothing more frustrating than the inconvenience caused by a slow responder.
Keep rental rate increases consistent and reasonable
It may be tempting to increase the rental payments on your investment property – after all, you did buy it for financial security. But being too aggressive with your rental rate prices could drive good tenants away.
Research similar listings in your area to determine what the current rental rates in your area are. If your rent is higher than what other properties are, then consider lowering your asking price.
If your rent is competitive, a good tenant will understand that they are getting a good deal and will be more inclined to stay in your property longer.
Hire a property manager
The best thing you can do to ensure your tenants stay in your property for as long as possible is to hire a property manager. Professionally trained in property and people management, property managers manage your tenants for you ensuring their happiness and satisfaction.
Property managers can:
- Advertise the property for you
- Collect and negotiate rent on your behalf
- Prepare tenancy agreements
- Lodge and collect bond payments
- Take care of property inspections
- Manage communication with your tenants
- Arrange suppliers to fix issues at the property
- Pay council rates and taxes on your behalf
- Issue termination notices to challenging tenants
At Turner Real Estate, we’re not like other agencies. We expect you to expect more when you put your investment in our hands. Our business model ensures a dedicated property manager and single point of contact for our landlords. And we can also assist you in planning your property investment goals and ensuring that the maximum return is achieved.
If you’re a property owner looking for assistance in managing your property, we’d be delighted to assist you. To find out more about Turner Real Estate’s property management services, contact us HERE.