As a landlord, you will inevitably deal with tenant turnovers, but they shouldn’t happen frequently. Tenant turnovers are something to be avoided. It can mean additional marketing costs and maintenance expenses. Aside from getting your property rent-ready again, you suffer a loss in income.
If you aim to be a profitable rental, your goal is to find and retain long-term tenants and reduce the amount of turnover as much as possible. Aside from the financial benefits, your property will also be in good hands. Since longer-staying renters tend to treat the rental as their home, they are active in its maintenance. This provides you with peace of mind.
At Archer Management Group, we understand the value of ensuring the tenants in our clients’ properties are in it for the long run. This article highlights the ways that landlords can gain the interest of long-term tenants. These 6 tips will set you in the right direction so that you can focus on retaining renters over a long period: 1. Have a target audience. Have an idea of the kind of tenant you desire. Once you have the qualifications set, it’s easy to perform the tenant screening. It will also help you a lot in landing the right target market when conducting your marketing.
Basically, you want someone who pays the rent promptly and maintains your home in a reasonable manner. Someone who has sufficient income and reduces your stress by adhering to the policies and conditions in the signed leasing agreement.
When creating a property listing, be upfront about your tenant screening procedure. Extol the best features of your property and be open about your pet policy. Being transparent at the outset sets expectations and shows that you are a trustworthy and understanding landlord.
2. Comply with all local and federal Fair Housing Laws. There are legal repercussions if you discriminate against prospects in your California rental home based on the protective classes of the Fair Housing Act. Avoid judging potential renters for their race, sex, skin color, religion, national origin, familial status, or disability.
Enforce the conditions in the leasing contract. Even if you have a friendlier relationship with one tenant, avoid handing out special treatment. Your other tenants might feel resentful over unequal dealings. So, if you charge late fees then this must be collected for everyone who fails to pay the rent on time.
As a landlord, it’s best to practice fair treatment to all to avoid complaints. If you provide free amenities, then everyone should enjoy the same. If you give out coupons, then ensure that other tenants get their share as well. This can create a harmonious environment. 3. Upgrade and renovate your units. Long-term renters expect improvement while renewing their leases. Imagine staying in a property for the third year and looking at the faded paint of the rental. The least a landlord can do is hire a painter to apply fresh coats of paint. This immediately refreshes the appearance of the rental unit.
As a landlord, learn what kind of top amenities your renters want. Invest some money to purchase a dishwasher, construct additional storage areas and replace old appliances with newer stainless-steel ones.
Home improvements need not be expensive. If you’re tuned in to the needs of your occupants, you can make affordable property upgrades in the kitchen and bathroom areas. You can also fortify the security of your rental which is always welcomed by renters. Build value as the years pass so tenants continue to be loyal.
4. Thoroughly screen your tenants. You can land long-term tenants when you are meticulous in evaluating their qualifications. Look out for the red flags such as inadequate income, bad credit score, poor rental history, eviction report, or criminal file.
You want to check the financial income since a renter that doesn’t have enough resources can fail to pay the rent on time. Your earnings will not be consistent and will affect your rental improvement plans. If you’re paying for a mortgage, then it can be a risk to have a tenant that misses payments or always pays late.
Credit scores matter since this is your glimpse of how financially responsible a tenant is. A poor score reflects irresponsible financial decisions that can affect you in terms of receiving regular rent payments. You also want to escape from someone who has too much debt and can barely make ends meet.
5. Clean your units before showing. Long-term tenants are particular when it comes to living in a clean space. As a landlord, it’s your duty to keep the rental home habitable. If you need to hire professional cleaners, do so to maintain the value of your rental unit. An immaculate home sets the expectation for tenants to take care of the rental in a similar way.
Continually upgrade the rental unit and check for functional appliances and systems. Be attentive to property repairs and replace items that are broken. It can greatly inconvenience renters to stay in a unit where some things are not working. Replace peeling wallpaper, repaint dull walls, fix broken window blinds and send the stained carpet for professional carpet cleaning. Strive to enhance your curb appeal. Landscaping should be considered. Clean the gutters after the rainy season or autumn season. Place some attractive outdoor decors. Your rental should elicit a warm feeling for renters. After all, staying in a single space for a long period creates the familiarity of home.
6. Maintain open lines of communication. The success of your rental can rest on your customer service skills. Long-term tenants stay with landlords with who they have developed a professional and friendly relationship with. Practice flexibility and hear out your tenants’ feedback.
Be approachable and reachable. Avoid overpromising and perform your landlord duties with integrity. Respect your tenant’s time and privacy. Send notices before entering the rental property. Fostering open communication ensures your renters will report any issue in your property. You can then nip potential problems in the bud. This lets you protect the value of your rental property.
The Bottom Line Keeping tenants for a longer rental duration requires dedication. To enjoy the benefits of loyal patronage to your rental, make sure the place is habitable. Design an environment that lends itself to peaceful living, so your tenants stay longer.
If you still have questions about attracting and keeping long-term tenants in your California rental home, consider hiring a professional property management company like Archer Management Group today! We offer a variety of property management services that are focused on earning you consistent monthly rental income and keeping your tenants happy. Contact us today!