One way to ensure youβre making the most return on your rental property in Oklahoma City is to focus on retaining tenants. Too many landlords, especially first-time landlords, spend too much time and money acquiring new tenants.
When you refocus your energy and efforts on increasing lease renewals, you can save thousands of dollars, avoid vacancies, and feel less stressed. But how do you make your current tenants want to renew their lease?
In this article, weβll go over seven proven strategies that encourage tenants to stay another year, or even two, in your rental property.
The Cost of Acquiring a New Tenant
Before we jump into how you can boost tenant retention rates, letβs go over just how much acquiring a new tenant can cost. Hopefully, this will help you realize just how important getting lease renewals are as a landlord.
When you need to find a new tenant, youβll have the following expenses:
- Advertising fees
- Professional cleaning services
- Painting services
- Commission fees
Letβs not forget the rent payments youβre losing due to a vacant property. Amateur landlords can face vacant properties for an entire month β maybe even two!
Not only will you be spending money on these services and losing money due to vacancies, but youβll be spending a lot of time talking to potential tenants, scheduling showings, and then actually showing people the property.
Overall, landlords can expect to spend around $2,500 to acquire a new tenant and prepare the property for them. Now, when you compare this to the very low cost of renewing a tenantβs lease, youβre probably feeling more inclined to focus on retaining current tenants.
Tricks to Boost Tenant Retention
It doesnβt have to be difficult to encourage lease renewals for your Oklahoma City rentals. In fact, the tricks weβve listed below wonβt only boost tenant retention, but will make your job as a landlord much easier.
1. Screen All Potential Tenants
You donβt want to be stuck with a problematic tenant. Not only will this surely make you not want to renew your lease with them, but they could be late with paying rent or damage your property.
To avoid this and only find tenants you would want to retain in your property, conduct a thorough tenant screening. Check their finances, criminal history, and credit score. Donβt forget to ask for references of other landlords and their employers to learn even more about them.
2. Prioritize Maintenance and Prompt Repairs
Tenants appreciate when landlords go the extra mile and ensure the property is in good shape. One way to keep on top of the maintenance is to have routine maintenance inspections every two months or so. This allows you access to the property to see what needs to be done.
When a tenant notifies you of a repair that needs to be done, make sure to do it promptly. Nobody wants to shower in cold water for a week if the water heater breaks or eat out for four days if the stove stops working.
Knowing youβre reliable and can tend to their needs quickly will encourage tenants to stay for another year.
3. Form a Good Relationship
Having a good relationship with your tenants is essential if you want to boost tenant retention. When you are both friendly and respectful towards each other, they will be more likely to renew their lease.
Simply take an interest in your tenants and remember important details about them during a conversation. Wish them happy holidays and be kind when you can. These small details can go a long way!
4. Offer Renewal Incentives
Maybe your tenant is on the fence about renewing their lease with you. If this is the case, offer them a renewal incentive to give them that extra push to resigning the lease.
This can be in the form of a small discount on the rent each month or for just the first month, including an extra utility, or adding an amenity that would make them happy.
5. Collect Rent Electronically
In this digital age, many renters, especially millennials, find it more convenient to pay their rent online. With so many different platforms for online payments such as PayPal, Zelle, and Venmo, itβs easier than ever to get with the times.
In fact, 56% of renters say that paying their rent online is very important to them when renting. So, why not make it easy for both of you and switch to electronic payments?
6. Allow Tenant Modifications
Sometimes living in a rental property can feel uncomfortable for tenants if they canβt really make it their own home. To encourage tenants to create a cozy place for them to live, allow them to make some minor modifications.
These modifications can include installing a shelf, replacing lighting fixtures, and painting colored walls. If your tenant puts some work into making the place feel more like home, they are more likely to renew their lease.
Just be sure to ask your tenant to notify you before making a change to the property so you can approve it.
7. Hire a Property Management Company
One of the easiest and simple solutions to boosting tenant retention and increasing profits from your Oklahoma City rental property is to hire a property management company. Putting your property in the hands of experienced professionals means you can sit back and relax.
From acquiring new tenants, screening them, maintaining the property, and making necessary repairs, a property management company will ensure your tenants have a good experience, and you can focus on other aspects of your life.
Retain More Tenants with Real Property Management
Do you want to save money, increase profits, and retain more tenants in Oklahoma City? Real Property Management, the areaβs leading property management company, can help you achieve all of these goals.
Contact us to discuss how we can help you retain more tenants and increase your rental property income today!
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