When it comes to outsourcing the management of your properties to a professional property management company, you may have some apprehension. It is only natural to wonder if you could do a better job yourself. However, the reality is that many hands make light work. As such, one person simply can’t effectively meet the demands of multiple tenants and focus on growing their business at the same time. With this in mind, many property owners are turning to professional property management as a way to more effectively manage their investments. While outsourcing to a property management company comes with a wide range of benefits, one of the most attractive ones is greater tenant retention. The bottom line is with greater tenant retention, your business automatically becomes more profitable. Read on to learn more about the many ways a professional property management company can help improve the tenant retention of your investment properties.
Why Is Tenant Retention So Important in The First Place?
As was aforementioned, tenant retention is important because it impacts your bottom line. Simply put, if you want a thriving, growing business, tenant retention will be a fundamental part of achieving that goal. Ultimately, whenever tenants are retained, your rental business benefits in the way of significant savings. These specific benefits will be discussed further below:
Save On Advertising: Marketing and advertising vacant properties to attract the right type of tenants won’t be cheap. As such, if you can retain quality tenants that are already in your properties, you can avoid the costs and hassles associated with listing your vacancies.
Time Is Money: When a unit or property sits vacant, you aren’t turning a profit. Regardless of how fast you begin the process of advertising and screening potential tenants it is likely you will miss out on at least a month or two of rent, before you are able to get someone new in the property. Conversely, when existing tenants can be retained, you will continue to enjoy steady rent payments each month, benefiting your bottom-line greatly.
Avoid Prep Costs: Whenever a tenant moves out, it will be important that the unit is in pristine condition for the next tenant. Even the best of tenants, will leave normal wear and tear, as well as dirt and grime inside the property. In order to prepare the unit to be rented again, it will be necessary to have it deep cleaned, painted, and have the carpets professionally cleaned or replaced. You can avoid the costs associated with tenant turnover, by keeping existing tenants happy so they stay for a longer period of time.
So How Exactly Does a Property Management Company Improve Tenant Retention?
While there are clearly many reasons why tenant retention is helpful in prospering your business, did you know that a property management company is often the missing link in keeping your tenants satisfied and retained for longer!? Consider how a professional property management company could help you retain quality tenants for longer below:
1. Addresses Maintenance Issues Efficiently-When it comes to a broken water heater, leaking facet, malfunctioning AC unit, or some other problem, no one wants to be given the runaround. The sad truth is that many tenants are left to suffer for days or even months depending on the severity of the problem. With a professional property management company at the helm, your tenants will receive prompt service on all maintenance requests, so they aren’t stuck living in a home that is not being properly maintained. This generally makes for happier tenants and happier tenants are more likely to be tenants retained year after year.
2. Keep Tenants in The Loop-No one likes to feel left in the dark or like their voice isn’t being heard. A property management company can ensure that your tenants feel valued by keeping them in the loop about any decisions that will impact them. This could mean providing regular updates on maintenance issues, notifying them of changes in their rent, or giving them a heads-up on any potential changes to the security of the property. As such, tenants will feel like they are respected and taken care of, increasing the chances that they will remain in your rental units longer.
3. Provides a Point of Contact-When tenants have questions or concerns about their property, they want answers fast. A professional property management company will be able to provide them with the speedy response times that they need to remain satisfied. This is because they are constantly monitoring properties and have dedicated staff on call 24 hours a day, 7 days a week. Additionally, they are often able to provide tenants with answers to their questions and concerns before they become major issues. The same cannot be said of a single person who may often be unavailable when the tenant needs to reach them the most.
4. Professional Tenant Screening-Implementing proper tenant screening is one of the most important steps in retaining tenants for an extended period of time. A property management company will be able to ensure that all potential tenants go through a thorough screening process, which can involve running background checks, verifying employment and rental history, and more. By having access to additional resources and expertise, they are better equipped to identify the ideal tenant who will be the least likely to cause problems down the line and the most likely to stay in your unit longer.
5. Attentive Community Management-It is important to keep up with the overall maintenance of the property and surrounding areas in order to ensure that your tenants feel safe and comfortable living onsite. A property management company can provide attentive community management services, such as regular landscaping, trash removal, snow removal, home updates, and more. This will improve the overall appearance of the property and help to ensure that it is up-to-date and well maintained. Once again, a happy tenant is more likely to be a retained tenant.
Ultimately, a professional property management company can dramatically improve tenant retention in your rental units. By providing efficient maintenance services, keeping tenants in the loop, offering a point of contact for questions, conducting thorough tenant screening processes, and providing attentive community management services, a property management company can ensure that your tenants are both comfortable and satisfied. Ultimately, this will lead to happier tenants who are more likely to stay in your rental longer, helping you to save money and maximize profits!