A little bit of turnover is always good so that you can “freshen up” your properties. But low turn over is better because it removes one of the major variables of property management, new tenants. Chances are you’ll choose a good one, but if you have a good tenant already, why open yourself up to the possibility of getting a bad tenant.
1. Set Your Rent Correctly
Keep track of market rent and keep your rents slightly below that level. You can always make a little bit more money by doing rent raises, but if turnover is your major concern, you want to keep the rents slightly low. When you do this, your tenants will not be able to find a different place for better value. Your tenants will only move if their situation changes, i.e., they can afford to move to a nicer, or bigger unit, they have to move to a new location for work or personal reasons.
2. Be Flexible With Tenant Re-leases
After the initial lease period is up, convert the leases to month-to-month. We do recommend having a year lease to begin with. Even though it might be a small number of people, it helps you avoid seasonal tenants. When you require the tenants re-lease, they have to decide whether they will be there for another full year. A lot of times, a tenant thinks they will be moving, and they will avoid a new lease to keep flexibility. If you provide them with a month-to-month, you can possibly get a few extra months if they follow through with their plan.
We find that a lot of people do have intentions to move, but it might take them longer than they think originally. So by providing tenants with flexibility, you can buy yourself a lot of additional time.
3. Be A Good Landlord
It’s that simple. It costs nothing extra to be a good landlord. Repairs cost the same amount whether you do them right away or wait to fix them. Pick up the phone, solving problems, and potential problems quickly won’t cost anything extra.
Pick good tenants, it’s not only good for you, but it’s good for your other tenants.
Finally, evaluate your tenants requests. A lot of times, landlords say no to requests because it’s not a necessary repair. But what they fail to realize is that it might be a valuable upgrade to the property and keep a tenant. I’m not talking about a bathroom remodel but something along the lines of upgrades to lights, windows, blinds, and appliances.
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About Belmont Shore Land Co.
- How To Reduce Tenant Turnover (3 Steps)
- Repairs Are A Unique Part Of The Property Management Business
- 11 Common Mistakes Made By Rental House Owners
Do you own an investment property in Long Beach? Or are you thinking of buying one in our great city? Get in touch. We would love to help.