No matter how hard you try to work with angry tenants to avoid vacancies, you won’t be able to have a zero turnover rate. Some tenant churn is unavoidable – renters turn into buyers and renters are forced to move due to job changes.
Renters are naturally a transient population. Is trying to retain them pointless? Flexibility is a perk of renting, but chances are, not all of your tenants want to deal with the inconvenience of relocating every single year. In this sense, using tenant retention strategies to encourage residents to renew their lease benefits both you and the renter.
Why do renters leave? In the graph Above, you can see the breakdown for the reasons tenants decide to leave. The principle reason for tenant loss is bad customer service - which is completely under your control!
Control tenant turnover. Research by SatisFacts, an authority on resident satisfaction surveys, showed that over 60% of customer turnover is controllable, with staff performance the largest determining factor in why a tenant moves out. In 83% of cases where renters leave, it’s caused by a triggering event. This means that the majority of tenant loss is avoidable. Recognize that people can go somewhere else for the same service – how can your property remain competitive?
Stay tuned for More On the Economics of Rental Retention and How Keeping Residents Happy Drives Profit. In Future Newsletters, we’ll break down more on the economics behind tenant retention and look at how applying strategies to reduce turnover will have a positive impact on your profits, operating budget, and long-term success as a rental property manager.
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