Tenant turnover has been a big problem lately. What suggestions do you have that might help reduce turnover?
If your rental units have become a revolving door of move-ins and move-outs, minimizing tenant turnover should be a top priority of your property management.
Tenants move for a variety of reasons and stay for a variety of reasons, most of them personal to the tenant. If good tenants are moving for reasons that you could have controlled, you are costing yourself business.
Rental properties can be affected by a number of local market conditions. Have you done a market survey to determine how your property compares with other rental properties in the local area? Are you competitive for rents, amenities, and customer service?
A review of the market should be followed by a review of your property management. How easy is it to do business with you? If you manage your own properties, you know the answer. If you use a property management company, you may want to conduct due diligence on their current general management operations, customer service, and tenant screening and selection practices.
Tenant screening and selection standards play a critical part in management operations. Qualifying an applicant to rental standards should include a review of previous rental housing behaviors. Does an applicant have a history of moving around? His turnover may just be the established pattern of his rental behavior. Does an applicant have a history of disruptive behavior? As your tenant, his behavior may be the reason that good tenants are moving.
Your rental policies and practices directly affect your business operations. Generally a tenant stays because the rental housing continues to meet the tenant’s needs. Tenant satisfaction surveys show that tenants place high priority on the following:
- Location
- Rents
- Amenities
- Rules enforcement
- Customer service
- Cleanliness/upkeep
- Maintenance/repair
- Tenant privacy and quiet enjoyment
- Security/safety
When tenants give notice of their intent to move, do you ask them the reason why they’re moving? If the reason(s) they give for their move-out are issues under your control, corrective actions on your part might save a future tenancy.
A business policy of reviewing upcoming lease expirations 60-90 days ahead of the expiration dates gives you time to decide if the current tenant is a tenant you want to keep. If the tenant is a good tenant, offer a lease renewal with lease terms and conditions that are of interest to the tenant and are competitive with the local market.