- Tenant retention rates are currently high in the US, with over 90% occupancy in apartments.
- The reasons tenants leave include poor maintenance, high rent, and bad neighbors.
- Good communication and desirable amenities can boost tenant retention rates.
- To attract and keep tenants, offer incentives and improve your property’s curb appeal.
- A proper vetting process and a peaceful community can help eliminate the issue of bad neighbors.
As a property owner or real estate agent, losing tenants is something you never want to happen. Not only does it affect your income, but it can also mean there are underlying problems with your property. However, it’s not always easy to figure out what’s causing them to leave. Here’s what you need to know about tenant retention rates in the country, why tenants are leaving you, and what you can do about it.
Tenant Retention Rate U.S.
Interestingly enough, current retention rates are relatively high in the U.S. Furthermore, according to reports, there is a more than 90% occupancy rate in apartments in 2021. This is great news for property owners and real estate agents, as you can keep your tenants around. However, this doesn’t mean you get off the hook regarding tenant retention.
Why Tenants Are Leaving You
Tenants may choose to leave for a variety of reasons. Here are some reasons behind that:
Poor Maintenance
One of the most common reasons tenants leave is that the property is not well-maintained. If there are plumbing issues, pests, or broken appliances, it’s understandable why a tenant would want to move out. As a property owner, it’s your responsibility to make sure the property is in good condition. Regular upkeep and repairs can make all the difference in keeping your tenants happy and staying on your property.
High Rent
Another reason tenants leave is that the rent is too high. They’ll likely make the switch if they find a similar property with lower rent. While you can’t necessarily control the rental market, you can make sure your rent is fair for the amenities and location you’re offering. A rent increase can be necessary, but it should be done in moderation and with proper communication with your tenants. The average rent in the U.S. is around $1,300, so make sure not to go above that.
Poor Communication
Communication is key, especially in the real estate business. If tenants feel ignored or unheard, they’ll likely leave when their lease contract ends. Make sure you’re available to answer questions, address concerns, and keep them informed of any changes or updates. Establishing good communication is not only beneficial for your tenants but for you as well.
Lack of Amenities
Having the right amenities can make or break a tenant’s decision to stay. If your property lacks amenities like a gym, pool, or proper parking, tenants may look elsewhere. On the other hand, having the right amenities can make your property a desirable place to live.
Bad Neighbors
The last reason tenants leave is because of bad neighbors. If your tenants are constantly disturbed by noisy or disruptive neighbors, they may decide to leave rather than deal with the issue. While you can’t control who your tenants’ neighbors are, you can try to minimize these types of problems by properly vetting future tenants and maintaining a peaceful community.
How to Keep and Attract Tenants
There are various ways to keep your tenants around and attract new ones. Here are some tips:
Increase Curb Appeal
The curb appeal of your property is one of the first things potential tenants will notice, so make sure it looks its best. First, consider changing your roof, as it is the first thing potential tenants will see. Hire a local commercial roofing service to help you. They can help you choose the right materials and do the job efficiently. Other improvements you can make include painting, landscaping, and replacing windows and doors.
Offer Incentives
Incentives such as rewards programs or discounted rent can be a great way to keep your tenants around longer. You can also offer incentives to attract new tenants by ensuring they understand the benefits of living in your property.
Improve Communication
As mentioned above, communication is vital when it comes to tenant retention. Make sure you’re available to answer questions and address any concerns they may have quickly and efficiently. Additionally, use technology such as text messages or emails to keep them informed of any changes or updates.
Provide Amenities
Finally, consider providing your tenants with amenities like a gym, pool, or parking. These amenities can make your property much more desirable for potential tenants and help to keep current tenants around longer. Additionally, you could offer discounts on services such as cable and internet to attract new tenants.
Tenant retention is critical to a successful property. Understanding why tenants are leaving and how you can keep them around is the first step to increasing your tenant retention rate. With these tips in mind, you’ll be well on your way to improving your tenant retention rate.
