It Costs at Minimum a Few Thousand to turn a Unit,..
Tenant retention is one of the most cost-effective strategies property managers and owners can implement. Think about it: a good tenant is your unofficial business partner. As long as they’re satisfied with the unit, you will benefit from uninterrupted rent payments.
Tenant turnover is costly. Recruiting new occupants involves spending money on marketing while losing money on a vacant unit. The profit you lose during the turnover period could be altogether avoided if you focus on retention. By maintaining your property and fostering tenant satisfaction, residents are encouraged to remain in the unit, giving you steady cash flow and maximized profits. Obstacles to managing a property are expenses largely beyond your control: property maintenance utilities, property taxes, mortgage payments, insurance, etc. When modest rent increases aren’t leaving you with enough profit after paying these bills, an effective way to improve your property’s financial performance is to reduce tenant churn, or the cost of turnover.
Stay tuned for More On the Economics of Rental Retention and How Keeping Residents Happy Drives Profit. In Future Newsletters, we’ll break down 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.
Here's an Idea.,..We know that several residents can’t make it to the office during business hours to sign their renewal. Pick a day out of the week to stay a few hours after and have leases printed and ready to sign along with some refreshments of your choice.
For residents signing a 9 month lease have them draw for a free carpet cleaning, an accent wall painted if they provide the paint or even a small discount off rent the first month of the new lease.
For residents signing a 12 month lease have them draw for new counter tops, or you can offer minor upgrades, which will still make a big impact: installing or upgrading ceiling fans, or replacing old blinds with new ones. Not only will you recoup some of the cost through increased rent, but when residents do eventually move out, the market value of the remodeled apartment will have increased.
At the end of the day everyone is a winner. It’s important to show your residents that you're happy to have them as members of your community.
Go with the Multifamily Pros at National DoorStep Pickup | 844-APT-TRASH