Owning rental property can be an extremely rewarding career, but it can also be stressful if you find yourself constantly scrambling to find new renters. Tenants have various reasons for moving out, from wanting more space to no longer being able to afford the rent. Some of these reasons don’t directly relate to your rental, of course. If your tenant has a baby and needs a second bedroom, for example, there is not much you can do about that. But there are reasons why tenants stay that could be mitigated by incentives from their landlord. If you want more of your tenants to stay, consider offering incentives. The following are a few reasons why.
You want good tenants to stay
Landlords do a lot of work to make sure they are finding the right tenants. That’s why so many rely on turbotenant to screen applicants and determined who would be the best fit for the available units. After doing all this work, of course, you want the right tenants to stay. Renters who are responsible, pay their rent on time, and are good neighbors are the people you want to keep. They are also the people who are most likely to move to bigger rental properties or purchase homes. This means you have to do everything you can to convince these renters that it is in their best interest to stay in your rental units. When your units are filled with responsible and kind renters, your job will be easier. Convincing these excellent tenants to stay is well worth it.
Tenants leaving is more work for you
When tenants move out, it creates a lot of work for the landlord. Of course, it’s important that landlords require renters to complete a move-out checklist when they leave, which alleviates some of the stress, but the landlord will still have to inspect the apartment, pay the tenants back their deposit, and do a professional cleaning before any new renters move in. In addition to the work you need to do to make the unit ready for the next tenants, you will also need to find them. You’ll have to post the listing, screen applicants, and try to find more amazing people to move into your property. When tenants leave, they obviously go through the hassle of moving, but you as the landlord have to make sure the property is in excellent condition while also finding the right people to move in next. It’s a lot of work that could be avoided if you could just convince your current renters to stay where they are.
Incentives help tenants stay at little cost to you
There are several incentives you can offer that would help your renters decide to stay without being a huge cost to you. If you ask your renters to sign year-long leases, you can offer your best tenants a rent reduction. You’ll want to consider how much you’ll be losing per year by offering this reduction, but not having to find new tenants or make the unit ready for new renters will save you time and money, making this reduction well worth it. You can also offer your renters a discount if they pay their rent early. Knowing that they are paying less rent than their apartment could incentivize your tenants to stay in their units longer since people love saving money. Whatever incentives you decide to offer, make sure you are keeping them consistent. You don’t want to offer one tenant a $50 reduction and another a $100 reduction. Your renters talk and they will wonder why they are not being treated equally. Plus, it will be easier for you to manage the reductions if they are all equal.
Simple incentives like this can convince your renters to stay in their units longer, saving you both time and money in the long run. Keeping your favorite tenants happy should be your priority, and offering incentives lets your renters know that you care about keeping their business.