AboutTime Issue 50 - Page 6

PROPERTY MANAGEMENT

Tenant retention strategy and tips

By John Kelly
As the Covid-19 pandemic slowly disappears , suspensions end and employment resumes , landlords , property managers and asset managers are seeing higher vacancy rates . With these vacancies it is commonly known that a recently vacated unit will usually require an inspection and a varying degree of repairs and upgrades to restore the unit to a rentready condition . Re-letting the unit will incur additional cost , including advertising , tenant screening , tenant visits and legal fees . All the while , the unit remains vacant , unable to generate rent for its owner .
What is tenant retention ? Tenant retention is the process a property owner undertakes after looking at the tenant turnover rate at a specific property over multiple rental periods . Although tenant turnover and vacancies are impossible to avoid , they can be limited with some profound property and / or tenant management techniques in order to maximise tenant retention . Through these tenant retention strategies , we ensure that all tenants in occupation are encouraged to stay in the premise , reviving their vision to run a successful business and enjoying their occupation within the property .
Why tenants leave
• Businesses are no longer competitive / relevant in the market .
• Landlord responsibilities – some of the mistakes property owners make is prioritising profit over the landlord ’ s duty and responsibility . For example : ignoring a maintenance request resulting in tenants feeling unheard , frustrated and looking for alternative premises .
• Unable to agree on lease renewal conditions in a competitive market .
• Fear of the unknown – lack of communication with the landlord .
• The need for more space – communication about why they want more space will help you to find a solution .
• Competitive rental rate together with comparative premises elsewhere in the market .
Tips to increase tenant retention
1 .
Maintain good relationships with your tenants .
2 .
Quickly resolve property maintenance issues .
3 .
Ask for feedback from your tenants .
4 .
Be open to tenant relief requests – carefully weigh the pros and
cons of all reasonable requests and perhaps re-gear their contracts
according to their situation .
5 .
Know your market and keep your property relevant within the market .
6 .
Conduct professional tenant screening and due diligence .
7 .
Be respectful and professional when speaking to tenants about late
rent and the need to stay current .
Conclusion
Tenant retention effort is one of the fundamentals that is vital to maintaining a profitable property management and / or asset management business . Remember that you are not only managing your building , but you are also managing people .
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ISSUE 50 - JUNE 2022