Did you know that over 60% of tenant turnover is preventable? Yet, many property managers and landlords are fuelling this issue without realizing it. Throw in the increasingly competitive market and rising costs, and what do you get? A blazing inferno of lost income, stressed-out staff, and declining profits.
But I’m not here to be the bearer of bad news; quite the opposite. Today, I’ll dive into the right moves and tools to skyrocket your tenant retention.
What tenant turnover really costs you
Tenant churn stings. Your team hustles to seal deals. Everything’s great, then it happens. You get the dreaded email from a tenant informing you that they won’t be renewing their lease. Worse, it’s the first of many. And so the exhausting cycle of scrambling for renters restarts. This situation isn’t just burnout-inducing; it’s costly, too. From marketing to redecorating, the bills rack up quickly, amounting to an average of $3,782 per unit. Using this figure, and assuming you’ve got 100 doors with a 50% turnover rate, that’s a $189,100 loss. Not to mention the accompanying opportunity cost. Ouch.
Effective tenant retention strategies for competitive markets
Now that we know what losing residents costs you, how do you fix low retention rates? Here are some tips and tricks.
Conduct high-quality and timely maintenance
Maintenance isn’t just a cost center; it impacts whether tenants stay or go. Renters who are satisfied with their property's maintenance are three times more likely to renew their leases.
So, streamline reporting, repairs, updates, and follow-ups via a maintenance tracking system. Execute each job promptly and ensure it’s top-notch. Also, leverage calendar-based and usage-based preventative maintenance to predict and monitor repair needs. These moves will show tenants that their comfort is a priority.
Facilitate flexible rent payments via a purpose-built app
Do you want to make a lasting impression on your tenants? Leave checks and bank transfers behind for a flexible rent payment app. It’s like upgrading from a landline to a smartphone. You can make calls with the former, but its use is rigid and limited. Conversely, a smartphone offers adaptability, convenience, and communication-enhancing features.
Similarly, traditional rent collection methods may get the job done, but they don't meet modern tenants’ needs like flexibility and ease. By using a rent payment app, you’re not just collecting money. You’re providing a tailored experience and safety net that keep your tenants happy and cash flow steady. So, it’s unsurprising that 97% of US tenants say they’d be more likely to renew their leases if offered flexible rent payments.
Personalize the tenant experience
Have you ever had a fantastic customer experience? They probably made you feel heard and valued. These sentiments are also essential for higher tenant retention. The trick is to personalize your tenant experience. Customizing experiences can boost ROI by 5X to 8X. This could look like offering flexible leases, tailored orientation tours, and acknowledging milestones.
Use loyalty programs to reward long-term tenants
Getting rewarded for something you would pay for anyway, like rent, sweetens the deal and boosts growth. Not only do 57% of people spend more on businesses they’re loyal to, but a 5% increase in customer retention can create a 25% jump in profit. For best results, create a points-based system for rent payments. Also, incentivize renewals with rewards that improve renters’ stay, such as free carpet cleaning or a streaming subscription.
Make sustainability upgrades to your properties
Many tenants care about their impact on the environment, and it shows in their buying decisions. 61% of tenants will pay higher monthly rent for an eco-friendly apartment, and 77% of companies say their green initiatives boost customer loyalty. Tap into this opportunity by launching sustainability initiatives. For example, you could implement energy-efficient and waste-reduction solutions like solar panels, recycling hubs, and smart water irrigation systems.
Keep tenants around for longer
By focusing on what matters most to your tenants and embracing tools that make their lives easier, you’re not just running through the motions of business building. You’re forging a community with staying power, backed by smoother operations and better profits. So, get started on your optimizations today and build a tenant base that lasts.
By Brad Robins Principal Product Evangelist, Flex
As Principal Product Evangelist at Flex, Brad Robins helps multifamily operators boost renewals and NOI through flexible rent technology. A BYU Marriott alum and former Adobe go-to-market strategist, he blends a decade of marketing expertise with a passion for resident-centric innovation. Brad presents regularly at AIM, NARPM and other industry events, translating payment insights into actionable wins for owners and renters. Off the mic, the Salt Lake City native is a podcaster, seasoned performer, and proud dad to Sadie Jane and Ruby.