Summer is a common time for rental leases to end, which often leads to a high turnover rate. This creates a busy and stressful time for property owners and landlords who have to inspect and make repairs on their properties as well as market them to fill any vacancies. The costs of high turnover can be substantial, and property owners need to plan and be prepared to weather the storm.
Turnover costs When a resident moves out, you could lose that month’s rent — and more if the property is not rented quickly. In addition, you have to spend money and time advertising and promoting your property, doing background checks, verifying employment, showing the property, processing applications, and taking care of other resident-qualification tasks. And then comes the job of cleaning, repairing damages, and making the home suitable for and appealing to the next residents.
How to reduce turnover There are situations such as graduations, end-of-academic-year relocations, new jobs, or other life-changing events that cause residents to leave that you have no control over. However, there are circumstances in which you can reduce high turnover at this time of year. Here are some tips to keep your residents for the long term:
If a potential resident has a history of staying only one lease term, you might want to reconsider his or her application.
Pay attention to feedback from residents who are moving out. Were they satisfied with the home and the management?
Keep communication lines open and respond to requests promptly.
After resident move-out is a good time to upgrade. A fresh coat of paint, new kitchen linoleum, or air conditioning could be just what a potential resident needs to make the decision to sign the lease.
Reward residents for lease renewal. A small gift such as a restaurant or home improvement store gift card or a ticket to a concert or sporting event creates good rapport — and hopefully a new renewal.
Many property owners are hesitant to raise rents for fear of causing a resident to move. That can be a mistake. As long as the rental market for comparable properties is strong, go ahead and increase the rent a small percentage at renewal. If you keep residents happy, they will not mind and will even expect regular rent renewals.
Although turnover is an inevitable part of rental property investing, you can mitigate the associated costs by showing your residents they are important and respected. A satisfied, happy resident is more likely to become a long-term resident.
Property management doesn’t have to be a headache — when you have the right help to make it easy. Visit the Universal Property Management website or call us at 603-766-4876 to learn how our experts can simplify all your property management tasks.