Finding a good tenant is one of the most challenging things to deal with. How can you find a good tenant who plans on staying for years? Vacancy is one of the worst issues for landlords as vacancy means you will start bleeding money. Here are the top 5 ways to avoid tenant turnover.
Tip # 1: Listen to Your Tenants
What makes a good tenant stay? The best thing landlords can do is talk to their existing tenants to find out what you are doing right, and where you can improve. Asking for regular feedback from tenants is the best way to find out how to be a better landlord to the next tenant.
Tip # 2: Keep Up With Improvements
To keep tenants happy, always maintain the property. It is important to make regular improvements to maintain the property value, and to keep tenants happy. Disputes over repairs and improvements is one of the most common issues with landlords and tenants. When tenants see landlords are investing in their property, they will feel better about living there, and paying rent on time. It is important to speak to tenants about the improvements you are making. Tenants need to be aware of the maintenance work.
Tip # 3: Determine a Fair Rent Rate
Review the rental rates and increase them carefully. Landlords and tenants often clash over the rental rates. Compare the costs of similar properties in the area, and make sure you discuss rate increases several months in advance to give tenants plenty of time to prepare for a higher rent rate. Most landlords will increase the rental rate every 2 years. Place a clause in the rental agreement to let tenants know there is a possibility of rent increases.
Tip # 4: Thorough Screening Process
To prevent tenants from leaving, it is important to carefully choose the right tenants to start. Run background checks on the tenants, and always check their references and previous rental owners to find out if they ended up on good terms with the last landlord. In depth screenings are the best way to prevent tenant turnover due to poor tenants.
Tip # 5: Ask for Referrals
If you have a good tenant, ask them for referrals. Referrals are ideal as they typically come from someone you trust, making it easier to know they will send you a person they believe will pay on time and treat the property with respect. Let your existing tenants do the searching for you, allowing you to have a steady stream of good tenants to prevent vacancies.
Contact East Bay Property Management for more information on how you can find ways to avoid tenant turnover and keep your property profitable.