Tenant retention is the lucrative secret behind successful rental property investments in the San Gabriel Valley area. Landlords who prioritize keeping their tenants for more than one year not only save time, but they can save thousands of dollars each year.
If you’ve been a landlord for a while, you know this is easier said than done. However, you do have some control over whether a tenant renews their lease or not.
That’s exactly what we’ll cover in this article—the reasons SGV tenants renew their leases and what you can do to increase tenant retention.
Why Tenants End Their Leases
Before we dive into the number one reason tenants renew their leases, we first have to understand the most common reasons they decide to end their leases.
Moving to a New Location
The number one reason tenants end their lease is because they are looking to move to a new location. This could be for professional or personal reasons, which are often beyond a landlord’s control.
If you have a large real estate investment portfolio, you may have other rental properties across the state or even the nation that you can offer to your tenants. However, this is not always a feasible option.
Rent Increases
31% of renters decide to end their lease due to rent increases proposed by the landlord. They would rather spend their time looking for a more affordable property to rent than stay in the same place and pay more.
Issues with Maintenance and Communication
A major landlord-tenant dispute concerns maintenance and communication. When tenants feel that the property is not being taken care of, such as waiting too long to fix a maintenance issue, they get frustrated with the landlord and consider ending their lease.
What is the #1 Reason Tenants Renew Their Lease?
When tenants have a pleasant experience renting from a landlord (or property management company), they are more likely to renew their lease—even if there is a rent increase. In other words, tenants expect great customer service.
What does it mean to have a pleasant experience as a tenant in Los Angeles, though?
- Tenants felt that the property was well-maintained
- Maintenance requests were handled promptly and efficiently
- Communication was quick and seamless throughout their tenancy
- It was easy to pay rent and submit maintenance requests.
However, overall, a pleasant rental experience depends on the relationship between the tenant and the landlord. The relationship should be professional, kind, and transparent.
How to Increase Tenant Lease Renewals in SGV
So, now that we’ve covered the #1 reason tenants renew their lease (good customer service), let’s dive into some actionable ways to implement it.
Keep the Rent the Same
We understand that prices are going up on just about everything these days. However, if you can keep the rent the same (or increase it as little as possible) as when your tenants first signed their lease, they would be more likely to renew it.
In fact, 67% of tenants said that if the landlord did not increase the rent that they would renew.
Invest in Property Maintenance
The upkeep and condition of the rental property play a major factor in whether tenants decide to renew their lease. 40% of tenants said that they would renew their lease if the landlord made an effort to maintain the property well.
One way to do this is by conducting routine property inspections to catch issues before they become serious. Replacing items that are broken or even upgrading appliances when needed shows tenants that you care about the property and their experience.
Be More Responsive to Maintenance Requests
Remember how one of the common reasons tenants end their lease is due to late responses to maintenance requests? It’s an easy fix for landlords to make, and 31% of tenants say that they would renew their lease if this were the case.
When a tenant requests a maintenance issue, be quick to acknowledge that you have received the request and work on finding the right professional to make the repair (or do it yourself).
Implement Convenient Technology for Rental Processes
Another thing you can do to increase tenant retention? Make the rental process easy by implementing technology. For example, tenants would traditionally write checks to pay rent to landlords. However, only 25% of Gen Z (which makes up 14% of the rental market right now) know how to write a check.
So, accepting electronic payments, bank transfers, or card payments for rent each month is extremely convenient for tenants. And convenience is key to tenant retention!
How to Improve Communication with Tenants
Boosting tenant lease renewals boils down to one thing—communication.
Landlords who prioritize prompt and clear communication with tenants (and take action on requests) will see an increase in tenant retention.
Below are some ways to help you improve communication with tenants.
Have a Dedicated Line of Communication
Choose a line of communication between you and your tenants and stick to it.
According to a study by Buildium, 59% of tenants prefer to communicate via text message while only 43% prefer a phone call. Another group could prefer email.
Choose a method that works for you; one that you know you’ll respond to quickly.
Respond to Maintenance Requests Promptly
One things that give landlords the upper hand is having a network. Having a list of contractors and repair services on hand in case of emergencies is going to make maintenance request response much faster and easier.
For example, in case of an emergency, such as a broken lock on the front door, repairs should be done within 24 to 48 hours. Meanwhile, broken appliances or a leaky faucet should be fixed within a week.
Hire a Property Management Company
When it comes to improving communication and overall maintenance and management of a rental property, the best decision a landlord can make is to hire a property management company.
Property managers have the tools and systems to ensure tenants have a pleasant rental experience. They respond to messages and maintenance requests quickly and have electronic payment methods already set up. Plus, it’s the property manager’s job to provide excellent customer service to both tenants and owners.
In fact, 71% of renters who have a property manager feel that they are getting the attention and services they need when renting a property. That’s a huge win for landlords who want more lease renewals!
Increase Tenant Retention (and Your ROI) with InveServe Corp
Are you ready to boost your tenant retention and get more lease renewals? Then it’s time to talk to InveServe Corp, the leading property management company in the San Gabriel Valley area.
Our team of real estate professionals will ensure your tenants are happy, maintenance requests are addressed quickly, and that your investment has a positive ROI.
We work for you and your tenants!
Sit back, relax, and contact us today to see how we can help you improve your rental property investment!
If you enjoyed this blog post, make sure to read How to Attract High-Quality Tenants to Your Rental Property next!
