Tired of all the tenants moving out? Well, you are not alone! Tenant turnover is the second biggest problem faced by property managers, preceded only by tenant evictions. In 2018 alone, the National Apartment Association reported a 46.8% tenant turnover rate in the U.S. While it is natural for tenants to move out after a certain time, an unusually high turnover rate can cost you financially.
But what most people don’t know is that more than 60% of tenant turnover is controllable. While not all reasons for tenant turnovers can be fixed, you can retain more tenants by fixing management-related issues. Understanding the cause behind the high turnover can help you find suitable solutions and renew more leases.
Why do tenants leave?
Personal issues: A change in the family such as marriage, childbirth or a job change can prompt the tenant to move.
Financial issues: Tenants move out to find affordable property in case of high rent or a job loss.
Management issues: Poor maintenance, bad communication, or ignored needs from the property manager can motivate tenants to move out.
While factors like rent growth barely affect retention rates, management issues such as poor communication lead to higher turnover.
Top ways to decrease tenant turnover
Simple renter-focused strategies can help you renew more leases and maximize profits. If you are unsure where to start, follow the below tips to retain more tenants and make their overall experience.
Establish good communication
Occupants having a good connection with their property managers tend to be more understanding if they face issues. According to Watson Wyatt’s Communication Survey, companies having effective communication with their customers had a 47% higher return over five years.
For multifamily properties, tenant portals are an excellent way to communicate with the tenant community as a whole. Apart from individual occupants, you can also send messages or emails addressing a group of tenants. In case of utility outages, you will be spared the hassle of informing one renter at a time.
Other than streamlining communication, tenant portals also document all your texts. In case an eviction is inevitable to protect your other tenants, such documents can serve as legal evidence.
Identify tenant needs
Identifying tenants’ needs is the first step to improve your property management service. According to a PwC survey, around 80% of American consumers say knowledgeable help and friendly service are important for a positive customer experience.
Data is your best friend for identifying tenant requirements. Analyzing tenant behavior, maintenance requests, and communication can give you insights into what your occupants require. Is there an issue tenants have brought up multiple times? Are renters using one amenity more than the other?
Understanding such behavior through data analysis software helps you generate accurate reports. These reports can be shared through your team and used to improve your overall tenant experience.
Prioritize tenant complaints
When tenants send out maintenance requests, it is often a priority to them. The urgency with which you treat these requests can significantly impact the tenant retention rate.
Whether it is a leaking ceiling or a noisy neighbor, tenants view such issues as important. A tenant communication platform lets them submit their complaints to the property manager. Depending on the kind of complaint, property managers can assign the right technician to fix the problem.
Tenants can also track their requests, see the status, and communicate with the technician through the platform. And for property managers on the go, mobile-friendly platforms help respond to tenant complaints faster.
Amenity management
Amenities are an excellent way to attract and retain more tenants. 87.2% of multifamily tenants say that building amenities significantly affect their renting decisions.
If you are targeting tenant retention, then certain amenities fare better than the others. A survey by TransUnion says that the most preferred community amenities are parking(94%) and pool(83%). The same survey also states that high-speed internet and walk-in closet are the most preferred home amenities.
Apart from the survey, a quick look at the demographics of your property can determine the amenities your tenants want. For example, Gen Z and Millennials depend on co-working spaces. But if a majority of your tenants are senior citizens, then investing in walking trails and fitness centers will retain more renters.
Platforms like MRI Resident Portal helps you manage multiple amenities. Tenants can utilize it to book slots and submit maintenance requests to make their amenity usage hassle-free.
Provide digital payment options
New generation tenants choose to pay online more than cash or check. Providing rent payment options such as bank transfers, credit cards, and e-wallets is not only convenient but also attractive.
Combine digital payment options with attractive incentives such as a discount on rent, and you give tenants no reason to move out! Such transactions are also safe for both the property manager and the tenant since the portals are secure and the transactions are documented.
Maintain financial transparency
Financial transparency is crucial for building trust in a tenant-property manager relationship. Whether it is security deposits or maintenance charges, conveying to the tenants what exactly they are spending can go a long way.
Using tenant portals, you can send invoices, receipts and communicate any changes to their rent or deposit. For example, if an occupant’s rent is due, you can send them a reminder while also adding information about the late fee. This makes the occupant aware of the additional fee on their rent that month. It is best to avoid any hidden charges and speak of the expenses upfront.
Assetsoft can help you retain more tenants
A leading company in real estate tech services, Assetsoft can help you find the right solutions for your business! From tenant portals to full-fledged property management software, we integrate the required features by understanding your needs.
With years of experience, we help clients make the best choices that help them reach their business goals. Through our consultancy services, you can find strategies that align with your business ideas and help you grow!
To know more about our services, contact Assetsoft!