Tenant retention is one of a landlord's core responsibilities, since rent payments are the source of a rental business’s income. Without tenants, it’s impossible to maintain a positive cash flow. While effective property management is a key component of retaining long-term tenants, identifying the common reasons tenants leave a rental is the first step toward preventing vacancies.
Rental Property-Related Reasons
Some of the reasons tenants leave are due to changes you made in the rental property or the rental business in general. The good news is that as the property owner, you can keep tenants from leaving the rental by making the necessary adjustments.
High Rent Increase
Understandably, you might need to increase rental rates to cover expenses, but doing so too much can drive tenants toward more affordable options. Be strategic about your increases. Research comparable properties and determine whether they have also experienced price increases. Calculate whether your cash reserves can cover the deficit for now, or if you really need to adjust your rent prices for good.
Lack of Amenities
Convenience is a big factor in rental properties, and naturally, renters would leave if many aspects of living in your rental property are difficult. If you don’t have in-house laundry facilities, they would have to take their clothes out to get them cleaned. If you don’t have strong locks, they might have to purchase security measures themselves. Tenants will think they are better off renting a property that can already provide what they need, saving on costs.
Property Deterioration
Without regular upkeep, your investment property can deteriorate quickly. Not only will this affect the rental's curb appeal, but it can also pose safety risks. Cracked walls, peeling paint, dying plants, broken appliances, or unclean common areas don’t exactly sound enticing to anyone. Chances are, similar properties in the area are conducting regular inspections and maintenance, making them the better option for tenants.
Pest Problems
Pest infestations are entirely avoidable, but sometimes, you and your tenants may still encounter them. It can be due to the lack of property inspections, or it can be due to a tenant failing to keep a clean rental unit. Either way, you must address this as quickly as you can. Pest infestations, when left unchecked, can lead to property damage, diseases, and other forms of tenant harm. This can be costly for you in a plethora of ways, and the best way to avoid this is through proactive maintenance.
Lack of Space
Tenants often have belongings of their own, which means that you have to allot space in the rental unit for them. If your property is furnished, there’s a lot less space for them to work with. You can always expand your rental space and charge higher rates, or you can offer bigger spaces if you have them. Sometimes, however, this disadvantage is simply out of your control.
Tenant-Related Reasons
It may not be your rental property that causes a tenant to move, but changes in their personal life. Unfortunately, these are out of your control, but that shouldn’t stop you from implementing new policies or offering new perks to convince them to stay, especially if they’re reliable tenants.
Lifestyle
Some tenants choose to move to a different property for reasons like a growing family. Smaller apartments may suit young professionals, but with children, most prefer a single-family home in a suburban location. You can choose to convince your tenants to stay by adding family-friendly amenities, such as dedicated play areas, swimming pools, or even a daycare.
Job Opportunities
If your rental property is in the city center, this may not be much of a concern for you. Many renters choose their homes based on where they work. If your tenant finds another job opportunity that is far from your property’s address, they will be inclined to move. You can offer incentives like a parking space for their vehicles, which is typically scarce in city centers due to limited urban space.
Change in Financials
When a tenant can no longer afford your rent price, they will choose more affordable places to live. While it’s not advisable to reduce your rental rates to keep a renter, you can always help them by referring rental assistance, offering lease renewal incentives, or waiving late fees. As a last resort, calculate whether keeping a tenant with reduced rent is more profitable than turnover costs and potential vacancy.
Pet Restrictions
Many tenants are willing to move to different rentals for their pets. When your property is not pet-friendly, and your renter decides that they want to get a furry friend, it can be a good reason for them to move. Consider changing your policy, as it also expands your tenant pool. Just be sure to set down pet rules and charge the appropriate fees to account for potential damages.
Tenant Retention FAQs
Why is tenant retention important for landlords?
- Retaining tenants reduces vacancy costs, lowers turnover expenses, and provides more stable, predictable rental income.
What factors influence whether a tenant decides to stay or leave?
- Common factors include rental price, maintenance quality, communication, property condition, and overall living experience.
How can landlords improve tenant satisfaction?
- Respond quickly to repair requests, maintain open communication, offer good amenities, and keep the property clean and safe.
Do incentives help keep tenants longer?
- Yes. Incentives like lease renewal discounts, small upgrades, or flexible renewal terms can encourage long-term tenancy.
Should landlords ask tenants for feedback?
- Absolutely. Surveys, quick check-ins, or post-repair follow-ups help identify issues early and show tenants that their opinions matter.
Can upgrading the property help keep tenants?
- Yes. Small upgrades like modern lighting, better appliances, or improved landscaping can make tenants more willing to stay.
Every Bit of Help Counts
Keeping your existing tenants can be challenging, especially since newer rental properties are popping up like wild grass. You need to convince your current renters, as well as potential tenants, that your property is worth the rent.
It’s all about maintaining smooth operations and marketing your listing strategically, and we can do that for you. With our resources and expertise, Huneycutt Realtors can make your rental property a welcoming living environment.
Learn more about how our services can help your rental property thrive. Contact us today!