Keeping your tenants happy and renewing their leases is key to keeping your rental housing business and your revenue growing. In the landlord business you have to build a strong relationship with your tenants if you want long-term loyal clients for you rentals. On the other hand, apartment owners and real estate investors who simply look at an investment property as a vehicle where the tenant pays their mortgage and generates them some positive cash flow tend to have tenants who move out annually.
When tenants feel or sense they are nothing more than a revenue stream for their landlord, they tend to move on quickly.
Here is a good system to follow:
- Let tenants know to expect rent increases in leases
Early on while interviewing, we would inform the prospective tenants that our aim was to retain a long-term rental. We did this by being totally transparent and saying, “Here is what we offer and here is what we expect. “
Within this information was a notation of an annual rental adjustment, letting them know up front that expenses rise each year and rents would also adjust accordingly. The objective here was to set the expectation for this rental increase so they were expecting it instead of defying it.
- A personal follow-up phone call
One month after they moved it, we would call and ask how their move went? Or, if there was anything they needed? Consistently we were met with gratitude and rarely did anyone feel they needed anything. They simply appreciated us reaching out to them. At the same time, it was the perfect opportunity to correct the path of any pending challenges.
- The little things make a difference in leases
These little differences in how we manage our properties have people wanting to stay and rent with us. As families outgrew their homes they would ask us if we had any other properties that were bigger, as they wanted to maintain our relationships. Their friends were always inquiring about renting from us. We have great reputations as property owners who care about their tenants. As a result, the only time people moved is if they left the area or if they bought a house.
You have all heard of, or personally live, the pride of ownership. When you can create this same type of pride for your tenants, you have created a great partnership that will have them renewing their lease. A person’s home is their castle. It is theirs independence. Even though they do not actually own the apartment or home, you want them calling it their home. When they feel great about where they live and are happy with it, they will call it their home and they will treat it like their home.
When you show you are genuinely interested in a happy partnership with your tenants, you in turn will find happy tenants who maintain the property and pay on time. Then you have a successful business.