How to Attract Long-Term Tenants

When you have tenants in your property who pay the rent on time and renew their lease, covering operational expenses (OpEx) is usually not a problem. But if your rental ever experiences long spells of time where the units are vacant, you may struggle.

This means that your ability to attract tenants who not only pay the rent on time but are also happy to do so over an extended period of time is one of the most important keys to rental property success. The challenge is, how do you find these types of tenants?

TRI Property Pros has put together this article outlining some actions you can take to help make sure your tenants stay long-term.

Why Good Tenants Don’t Renew their Lease

Here are some of the most common reasons why good tenants don’t renew their lease :

Poor Communication

Every rental property will have its fair share of problems. When the landlord makes an effort to understand these issues from the tenant’s perspective, tenants will feel seen and heard.

Tenants who know they can report problems and that those issues will be acknowledged are more likely to renew their lease. Conversely, if tenants feel ignored, they will leave.

Inadequate Maintenance

To landlords, repair and maintenance issues can sometimes feel like a cost. But for tenants, they’re a problem that causes discomfort, disrupts their lifestyle, and, in some cases, even threatens their safety.

If a landlord is quick to remind the tenants about the rent but slow to fix the problems in the rental property, they will have unhappy tenants on their hands.

Tenants Feel Unsafe

Tenants appreciate it when their landlord takes practical steps to improve the security of the rental.

These measures can include things like adequate outdoor lighting, burglar alarms, updated locks, and surveillance cameras. If tenants feel that their landlord is not doing enough to secure their lives and property, they may not renew the lease.

Bad Neighbors

Landlords who fail to create and enforce guidelines to prevent disruptive behavior in their rental property will pay for it with high tenant turnover rates.

If one tenant makes other tenants unhappy with loud noise or behavior that violates their rights, your rental property may feel unattractive. If those good tenants complain to you and you don’t take firm action to solve the problem, they will probably not renew their lease.

Obsolete Amenities

If the amenities in a rental are outdated, and your tenants can get better options within the same price range, they will move.

If a rental property has upgraded amenities, not only can the landlord charge a higher rent, but tenants will be more than likely to renew their lease because of the comfort and convenience they enjoy.

Poor Landlord-Tenant Relationship

Some landlords think only in transactional terms when dealing with tenants. Yes, a rental property is a business, and like all businesses, it is set up to make profits.

But at the same time, tenants view the property as their home, something very personal. When landlords fail to understand this, it can result in a difficult relationship with their tenants.

Unreasonable Rent Increases

If you raise the rent and your tenants feel like they are being exploited, you risk losing them. Rent increases are to be expected, but they must be justified.

Tenants not only want to be able to negotiate rent increases with their landlord, but they also want to see that the property is being improved. If discussions about rent increases are foreclosed and there are no upgrades to justify the increase, tenants will look for alternatives.

How to Attract Long-Term Tenants to Your Rental

Effective Property Marketing

Even with the best rental property, tenants will still come and go. Maybe the tenant is forced to relocate, has bought their own home, needs more space, or wants a change of environment.

Your ability to find new tenants quickly will prevent these departures from impacting your revenue and profits negatively. Good marketing helps you catch the attention of the right kind of tenants easily.

Rigorous Tenant Screening

Sometimes, the reason why tenants fail to renew their lease has nothing to do with the physical condition of your rental property, the rental rate, or you, as the landlord.

If you lease your property to tenants with a bad rental history (late rents, evictions, property damage, or bad behavior), you won't want them to remain in the property for long.

Comprehensive tenant screening ensures that you are vetting applications thoroughly and only leasing to good renters who are more likely to stay.

Flexible Lease Terms

You should be able to adjust the terms of the lease to accommodate your needs or the kind of tenants you are trying to attract.

As an example, most landlords don’t want pets in their properties, but pet owners are usually well-off, and are unlikely to move out of a property if their pet loves the place. As a landlord, you just need to know how to manage the risks that come with pets.

Conclusion

To attract long-term tenants to your rental property you must invest in those things that make tenants want to renew their lease.

Among other things, this means making an effort to build a good relationship with your tenants, ensuring that the property is well-cared-for, and keeping the amenities in the property and its aesthetics up-to-date.

If you want more information or help attracting long-term tenants to your property contact TRI Property Pros today!