Tenant turnover can be costly and time-consuming, but you might be able to avoid it by implementing these effective tenant retention strategies, writes Heather Martens of Mortgage Advice Bureau.
By understanding and addressing your tenants’ needs, you can foster long-term relationships and potentially reduce vacancy periods. We’ve put together this handy guide to help you explore some strategies for retaining quality tenants and maximising the value of your rental property.
Understanding needs and expectations
If you want to keep your tenants, you’ll need to prioritise their needs and expectations. This will involve:
Communication
Clear and timely communication is key to keeping your tenants happy. This means maintaining open and regular lines of communication. You can do this through a variety of channels, whether it’s over a call or text, email, or through a property management software. If you’re using a letting agent, let them know what you’d like to convey to your tenants.
Be sure to address any queries and concerns promptly.
Maintenance and repairs
To keep tenants happy, make sure you’re responding quickly to maintenance requests. Not only that, but ensure that any repairs or renovations are done with quality workmanship.
Conducting regular property inspections can also help to identify potential issues before they become problems.
Fair rent increases
Rent increases are inevitable, but when you are increasing rent, provide clear and justifiable reasons to your tenants. Align your rent increases with market rates and property improvements.
It’s best to avoid excessive hikes when you can. Gradual and reasonable is the way to go if you want to keep your tenants in your property.
Positive tenant experiences
Creating a positive environment for your tenants doesn’t have to be a challenge. In fact, it’s fairly easy to provide a comfortable and welcoming living space. If you provide appliances in your rental, try to make them as energy-efficient as possible so your tenants pay less on utilities each month.
On the subject of utilities, if you can, try incorporating eco-friendly features like energy-efficient lighting and water-saving fixtures. This can go a long way towards helping your tenant manage monthly costs. Consider ensuring the property is also well insulated.
Even if you don’t have the highest EPC property, a little extra padding can make a big difference to your tenant’s comfort.
Effective tenant retention strategies
To ensure long-term tenant satisfaction and minimise turnover, consider implementing these effective tenant retention strategies:
Offering flexible lease terms
If you’re comfortable with flexibility, offer early renewal options and negotiable terms to meet tenant preferences. This can include move-in dates or accommodating pet ownership. Be sure that this flexibility works for you too, but keep in mind that everyone has unique needs, and being open to discussion can go a long way to tenant retention and satisfaction.
Excellent customer service
There are a few core principles to excellent customer service. These include professionalism, efficient communication, and prompt issue resolution. Your tenants are people too, so handle enquiries and concerns with courtesy and efficiency. If you struggle to keep on top of your communication and maintenance, consider using property management software to help.
This will also make it easier to address maintenance requests promptly.
Leverage technology
In today’s digital age, technology can be a powerful tool for landlords to improve tenant retention. Here are a few ways you can leverage technology to your benefit:
- Online portals
These can allow for efficient communication between landlords and tenants – just be sure you’re checking them regularly or setting up notifications. Using a portal, tenants can also pay their rent online, reducing the risk of late payments and admin costs. They will also be able to submit maintenance requests online and track their progress.
- Smart home technology
Smart home features, such as smart thermostats and smart locks, can improve tenant comfort and convenience. These can also help reduce energy consumption and lower utility costs.
- Data-driven insights
Make more informed decisions by analysing tenant data where you can. This makes it easier to stay up-to-date with trends and patterns in tenant behaviour. Subscribing to newsletters or using landlord insights websites can help with this.
You can also set up reminders for yourself based on past experiences and information online to address potential issues proactively. For example, if you know the boiler acts up every two years or so, you can have a reminder set up to give you a headstart on addressing any issues.
Making the most of your buy-to-let
A buy-to-let property can be a lucrative investment, but it’s essential to maximise its potential. A big part of this is ensuring that your tenants are happy and comfortable, to achieve long-term tenant retention.
While some tips outlined in this article will work better for some than others, implementing a few of them could make a big difference.
Make sure you’re communicating clearly with your tenants, providing positive experiences, and maintaining a level of flexibility that works for you.
