Tenant retention is one of the most critical aspects of the profitability of your rental real estate venture. Retaining long-term tenants ensures a steady income, saves costs, and helps you build a good reputation as a landlord. The good news is that creating and implementing an effective tenant retention strategy is easier than you think. Here are our favourite strategies to help you retain your good tenants:
5 Strategies to Boost Your Tenant Retention
1 – Keep Open Communication
Maintaining open lines of communication to address issues before they become major problems is essential for a long-term rental relationship with your tenants. Communicate property rules and policies to avoid misunderstandings. Be transparent about any changes in policies and provide adequate notice.
Responding promptly to tenant inquiries, concerns, and maintenance requests is also an excellent way to make your tenants feel their needs are being handled.
2 – Flexible Lease Terms
Consider offering flexible lease terms, such as longer leases or a pet-friendly policy. Being open to modifying the lease terms will provide stability for tenants, fewer turnover costs and constant cash flow for you.
Be open to negotiating the terms, such as payment options and upgrades, when possible to encourage longer tenancies.
3 – Offer a Fair, Competitive Rent Price
Finding the sweet spot where you profit from renting your property and your tenants feel they’re getting a good deal can be challenging in a market impacted by inflation, with about a 14% increase in rental prices in Alberta in 2023, but it’s not impossible. Here’s how you can do it:
- Keep an eye on the Market: Regularly research the local rental market to understand current trends, vacancy rates, and rental prices for similar properties. Consider factors such as location, the amenities you offer, and property size when determining your rent price.
- Offer Value-Added Amenities: There are many ways to add value to your property without spending much, like including Internet or other utilities to the rent price, updated appliances, or a parking space. We detail more high-value and budget-friendly amenities that add great value to rental properties here.
- Offer incentives: you can attract tenants by offering flexible payment options for the application fees and online rent payments for convenience. If you own several properties, consider offering referral incentives for existing tenants who refer new, qualified renters.
- Be aware of the law: According to Alberta’s tenancy regulations, landlords cannot increase rent prices for a year after the start of the agreed lease period or the prior price increase. Although there’s no limit to the amount landlords can increase rent, avoid setting rents too high as it may backfire, leading to longer vacancies and increased turnover.
4 – Regular Maintenance
Conduct in-depth property inspections at least once a year to address maintenance work promptly. We also recommend scheduling a site check-in visit to the property to discuss any concerns you and your tenants may have and see if the property needs extra maintenance.
5 – Entrust Your Property to Professionals
Getting a professional property manager to handle your tasks as a landlord is the best way to keep your tenants for the long haul. Property management professionals have the time and the expertise to find high-quality tenants and keep them happy living in a well-maintained property, all while you maximize the return on your investment.
Tenant Retention Equals Success
Vacant properties only generate expenses, so keeping your rental occupied for extended periods should be your main focus as a landlord. With a proactive and methodical approach, you can build a mutually beneficial dynamic with your tenant to boost your profits as a real estate investor.
Need assistance building a strong tenant retention strategy? If your property is in the Calgary area, we’re happy to help. Contact us to get a free quote.
