What are you doing to retain tenants in your Northern Virginia rental property?
This has to be a big part of your investment strategy. Turnover may be higher here than in other markets, thanks to people coming and going for jobs and school in the metro Washington, D.C. area. However, you don’t want to normalize ongoing tenant turnover.
One of the best ways to increase your return on investment (ROI) and ensure the stability of your cash flow is to keep your tenants in place. We believe a solid tenant retention plan is worth your time and resources. We always recommend an active effort to encourage your residents to renew their lease agreements at the end of the tenancy.
Avoiding vacancy and turnover is better for your profitability. It may cost you thousands of dollars just to get your property ready for a new tenant after your existing tenant moves out.
Here are some effective strategies we can share with you today around how to increase tenant retention.
North Northern Virginia Tenant Retention and Rental Increases
Let’s get right to it. You don’t want to chase good tenants out of your property with a rental increase that’s unreasonable.
Raising the rent every year when the lease renews is typical, and most Northern Virginia tenants will expect a higher rent from year to year. But we don’t recommend an increase that’s going to push your tenants out or give them a reason to look elsewhere for a home. Study the market and make a smart increase that covers your own increasing expenses, but make sure those increases are market-driven.
When you have great tenants in place who pay rent on time every month, keep the property clean and in good shape, and take care of minor issues around the home themselves, it’s always going to be more cost-effective to keep those residents. Implement a small increase that matches inflation and the market rental values. You don’t want to be at the high end of what similar properties are renting for. Keeping a good resident in place is more valuable than a couple of extra dollars in rent every month.
Responsive Maintenance Impacts Retention
There’s more to it than a mindful rental increase. There’s also the way tenants feel about your responsiveness when it comes to their repair requests. Responding to maintenance requests is critical, especially when you’re trying to retain your tenants. We like to treat both emergencies and routine requests with a sense of urgency. It’s also important to keep tenants informed throughout the repair process so they know where things stand. If it’s taking a bit longer to get a vendor out, let them know.
Rental property owners who prioritize responding quickly to maintenance needs find that their tenants feel like their needs and comfort are being taken seriously. That’s going to count when it’s time to make a decision around lease renewals.
One of the main reasons that tenants leave rental properties is because repairs were not taken care of in a timely manner. Don’t lose tenants this way; make the repairs quickly. Not only does it retain tenants, it also protects the condition of your investment property.
Invest in Upgrades and Updates
Everyone appreciates improvements from time to time, including your tenants.
When you make a renewal offer, you can throw in a free carpet cleaning or a fresh coat of paint in the living room if it’s looing faded or dirty. Maybe they’ve requested a new appliance; this is the time to replace it.
If your tenants make a specific request, consider it carefully. Making the upgrade will likely cost you less than the turnover and vacancy expenses that come with finding a new tenant and preparing the property for a new cycle of marketing and showings.
Provide a Positive Rental Experience in Northern Virginia
Good tenants aren’t looking for a reason to move. By providing a pleasant and stress-free rental experience, you can give them a reason to stay. Here are some of the things we recommend:
- Share expectations at move-in. Tenants will always feel like they’re having a good experience if you’re clear about what you need from them. You must be willing to let them know what they’re responsible for, and you have to behave consistently and with fairness. Discuss the lease agreement in detail. Your tenant retention plan actually begins before they’re even your tenants.
- Invest in a good relationship. This starts with communication. Be available, accessible, and responsive. Communicate in ways that your tenants are most comfortable; whether that’s by phone or by text or by email. Make sure you’re an active listener when they come to you with questions or concerns.
- Check in once in a while. Tenants shouldn’t hear from you only when something’s wrong like rent is late or the water needs to be shut off for repairs. Ask how they’re doing and if there’s anything they need.
Making life easier is a great way to retain residents. Provide conveniences and ease, such as online rental payments. Tenants are looking for this type of ease and convenience. They’re busy.
One way to provide the convenience they’re looking for and to ensure your rent comes in on time is by providing an online payment platform so your residents can easily and securely pay rent online. We have a whole tech-driven portal that our tenants use, and that’s one of the reasons it’s such a good idea to work with Northern Virginia property managers.
While you might find that you don’t have access to the same technology and resources that property managers have, you can still figure out a way to collect digital rental payments. Download an online payment app or work with your mobile banking platform to arrange for money to be easily transferred from their account to yours.
If you’re worried about retention or just looking for ways to incentivize your tenants to stay, we have some additional strategies we can offer. Please contact us at Comfort Property Management. We lease, manage, and maintain investment properties throughout Northern Virginia in Arlington, Alexandria, Fairfax, Falls Church, McLean, Ashburn, Sterling, Springfield, Reston, Chantilly, Manassas, Centreville, and Herndon.
