Is Tenant Renewal a Reflection on your Property Management?

The short answer is absolutely. Whether you manage your own income properties, or hire a reputable company, the way you manage is directly proportionate to tenant retention. Vacancy will be an investor’s biggest expense, so it’s important to understand what is needed to maintain occupancy and keep good tenants in the property. In our experience, responsiveness, accountability, appreciation, and ease will keep your renewal rate high.

Once you have secured a quality tenant, it’s imperative that either you or your management company are responsive and accountable to their needs within the terms of the lease agreement. If repairs aren’t tended to in a timely fashion and by professionals, the tenant is not going to be happy living there, especially if it involves the A/C in the middle of an Arizona summer! Additionally, there needs to be someone available to answer questions should they arise. Neglect will never lead to a lease renewal.

Appreciation of good tenants is easy to do, and goes a long way. A phone call or personal meeting at move in is a quick way to build report. Good tenants are sometimes hard to find, so let them know you appreciate them and would love for them to stay for another lease term.

Make it easy for tenants to move in, and pay rent. If you can set up a system where they can pay online with direct deposit, it benefits both parties immensely. The application process should be straight forward and easy to access. We live in a world driven by convenience, and you don’t want to lose a great tenant because others are easier to access.

A great Property Manager uses these practices on a daily basis, and has systems in place to manage the variables. Following these processes, occupancy rates should stay well over 90% and turn times under 30 days, saving the investor any cost of vacancy. So, long story short, Tenant renewal is absolutely a reflection on your Property Management skills, or the company that you hire. My recommendation? It’s well worth the small fee to employ a professional with these skills and systems in place, and create passive income for yourself.