Tenant turnover in rental properties is a major concern for developers, property managers, and landlords. Real estate experts said the vacancy rate should be below five percent to ensure a steady stream of tenants that financially benefit the landlord and the management company. However, having a high turnover rate can result in the difficult selection of new tenants who can maintain the occupancy rates at a desirable level.
According to statistics, on average, a renter moves every five years, while long-term residents may stay for over ten years. Their desire to relocate depends on geographic location, socioeconomic status, and personal preference. In some areas where homeownership opportunities are higher than renting, people might stay in their homes for decades or even a lifetime.
Because of these, landlords should think of effective and efficient tenant turnover techniques to avoid difficulties and expenses related to finding new tenants as follows:
1. Keep Your Rent Competitive
If you don’t have the necessary capital to purchase a rental property, consider applying for financing to allow you to expand your business and increase the supply of available units on the market. This avoids a shortage of renters. One way to lower monthly rents is by converting a two-bedroom into another one-bedroom if one is already occupied.
You may also decrease rates after finding out what percentage of each income bracket is willing to pay. This lets you maintain consistent occupancy rates because of the increased demand from prospective tenants looking for affordable housing without giving up quality amenities.
2. Update Your Property with Modern Amenities and Add Value
Modernizing current units may discourage existing renters from moving out the following year. You can increase curb appeal by landscaping or adding new flooring, paint, cabinets, and fixtures making the unit more desirable. A competitive rent price is also important because it shows that you offer an affordable home for potential tenants.
Also, consider updating the overall layout of the common areas to boost resident retention rates. Ensure to inform residents about these updates, so they can feel proud of their homes, knowing that you care enough to improve them every year. This is why famous property managers attract many tenants because of this strategy. Consider adopting this technique to decrease the vacancy rate on your rental property. Visit Platinum Realty Group for more info.
3. Ensure Effective Management Practices
Many property managers have reported that tenant turnover is directly associated with management practices. Ensure the following to avoid high rates of renter attrition:
- Ensure you are responsive to tenant needs.
- Be transparent about all information given to residents.
- Provide accurate rent payments.
- Act on repair requests immediately.
- Hire a Property Manager
4. Hire a Property Manager
Doing all the work yourself may take up valuable time that you could use elsewhere. This might even lead to mistakes with serious consequences. Local authorities could fine or sue you for discrimination if you mistake rejecting a prospective tenant.
Hire property managers to handle tenant complaints while protecting your best interest as an owner. And at the same time, they make sure that they are dealing with your tenants within the confines of the law to avoid any possible legal issues. They are also responsible for maximizing profits by finding renters below market rates and increasing occupancy rates.
So, instead of worrying about finding tenants, you can now focus on running your business. Working with property managers also reduces no vacancies without having to worry about overcrowding because they will manage everything from rental agreements to maintenance requests. If you’re looking for property management professionals, Platinum Realty group community management service may be the right service for you.
5. Stay on Top of Repairs
Losing renters due to poor living conditions is a typical reason they leave. As the landlord, this is a sign that you need to know when things are not working properly or risk losing renters who might complain about these issues with friends and family looking for a rental house or apartment.
Hire a property manager to inspect units on your behalf to avoid complaints. Property managers can fix the issue before it becomes severe. You can also cut extra expenses and save time by keeping up-to-date with appliance maintenance and HVAC inspection appointments. You don’t want your tenants moving out because of device failure, which could have been prevented if the unit had been inspected early on.
In a Nutshell
Among the many ways to avoid the turnover of rental units, you can consider these top practices to make your life easier and maximize profits by keeping more renters in your properties longer. Additionally, try investing in a property management company that will provide these services for you while using your interests as their priority. You can also pay a maintenance team to handle any tenant concerns about the property’s condition.
Whatever you choose, following these practical yet effective steps will help keep tenants happy. They will have no reason to move out, letting you receive more income from your rental units over time. Platinum Realty Group, one of the best property managers in Boston, may help you with your rental properties if you’re looking for real estate experts in the area.