If you own rental property, it goes without saying you always want there to be tenants paying you to rent it. Turnovers not only cost you the time you could otherwise be earning, but they also come with other costs. Here are a few tips to retain tenants for longer and reduce turnovers to ensure the passive income from your rental property is stable and predictable.
Know Your Local Market
How does your property stack up against comparable properties in your area? If you’re charging more in rent but aren’t offering a better home, you’re very likely to lose good tenants to competition down the street. Consider popping into a local open house for an easy way to see how well your own property compares, or search through local listings as if you were a potential renter yourself!
Create a Connection With Your Tenants
Calling your tenant to check in on top of sending the required written statements that can come off emotionless and cold, or simply sending them a holiday greeting card are great ways of making your tenants know you care about them as people. Tenants who have a connection with their landlord are much more likely to pay rent on time and stay in a particular rental unit for longer.
Encourage Your Tenants to Refer Their Friends
Friends who live in close proximity are much less likely to move away from one another. If you have a multi-family property or multiple properties close together, encourage your tenants to help you fill those units with people they know and would like to live nearby.
Of course, it’s always incredibly important to screen all of your potential tenants to avoid the types of renters who have no intention of settling into one place. Reducing turnovers with background checks can protect your bottom line and ensure you don’t lose existing tenants by renting to the wrong people.