When you run a rental business, your customers are your tenants. Thus, like every other business owner, you should always strive to ensure they have a pleasant stay on your property. Unfortunately, not every landlord shares such views, which can have severe financial repercussions on their wallets. It doesn’t matter if you find the best real estate agent. A poor tenancy experience will always translate to a high turnover rate. As a result, you’ll experience more vacancies during the year and lose out on much valuable income.
Whether you’re new to the rental industry or a well-versed veteran looking to learn more, you can benefit from this article. Stick around as we highlight how to improve tenant experience during their lease. At the end of this post, you’ll understand why it matters and how to maintain occupancy rates. Let’s get started:
Why Does Tenant Experience Matter?
Lower Turnover Rates:
One of the primary reasons tenant experience matters is that it lowers turnover rates. When renters are happy, they’re less inclined to leave your property and seek greener pasture elsewhere. However, they’ll move if they’re unsatisfied with slow repairs, invasion of privacy, and general disrespect. Even if you have a high-value property, it’ll take a couple of weeks to a month for you to fill a vacancy. And for every day your unit is empty, you lose money.
Another reason to prioritize your tenant’s experience is that it assures you a steady income. As we highlighted in the previous point, when tenants are happy, they stay longer. That means they also pay their rent, so you earn monthly income. Considering most property owners still have to keep up with bills like property taxes, mortgages, and utilities, steady rent is crucial to the survival of your business.
It can spark a dispute when tenants are frustrated with their current living conditions. For instance, landlords might find it hard to collect rent from tenants demanding repairs. In such a scenario, both parties would probably feel vindicated in their stance because the other is violating the rental agreement. Thus, if you want fewer disputes, you should work on enhancing your tenants’ experience.
Better Landlord-Tenant Relationship:
Most real estate experts recommend establishing a rapport with your tenants. However, you’ll find this task easier to complete with happy renters. Creating a relationship is much easier when your tenants appreciate your efforts to make them feel comfortable and heard. If you cannot build such a connection, you can hire a responsible property manager to help boost tenant retention.
Finally, a good tenant experience can help you reduce your expenditure. When an unhappy renter leaves, many funds go into replacing them. First, you have to spend money on vacancy ads or hire a real estate agent to find you a match. You also have to get the apartment ready, so you’ll need to add inspection, cleaning, and repair costs to your bill. You must screen applications thoroughly to ensure they are high-quality tenants when you have applications. You might also need to hire a lawyer to help with the lease. If you have to cover such costs 2-3 times a year, they could severely affect your profits.
How to Improve Tenant Experience and Maintain Occupancy Rate?
Encourage Open Communication:
One of the best ways to improve tenant experience is to encourage open communication. Tenants thrive better in spaces where they can freely communicate with their landlord. Knowing you’re available to listen and attend to their needs can help secure a better retention rate. Thus, it would be best to consider setting up platforms such as text, email, or a property management app, to improve the flow of information.
Prioritize Proper Maintenance:
Dealing with leaking pipes, broken tiles, and shaky stairs can be exhausting. Unattended repairs are one of the most common reasons tenants fail to renew their lease. If you’re a negligent landlord or renters have difficulty getting a hold of you, it could simmer some resentment. Thus, when the opportunity presents itself to leave, they will. Prioritize making repairs and scheduling regular maintenance for your units to improve their experience.
Another way to keep your tenants happy is to make upgrades. Making cosmetic and appliance improvements helps you stay ahead of the competition. Many renters value their safety, so installing surveillance cameras can improve their sense of security. An in-building washer and dryer would also make laundry more accessible and convenient. These changes can increase your ROI too.
The value of tenant experience is starting to gain more recognition in the world of real estate. Savvy property owners now benefit from delivering a warm, open, and comfortable living environment. After all, happy tenants mean dealing with fewer disputes and turnover rates. It also means saving more money to secure a new renter and earn a steady income.
You can secure these benefits by encouraging open communication, prioritizing proper maintenance, and making new upgrades. However, not everyone has the time to stay on top of their tenants’ experiences. In such a scenario, you should outsource this crucial task to a competent property management company. These professionals can help you deliver maximum satisfaction to your renters.
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