Why must good things come to an end? That’s the question you ask yourself when a model resident decides that they don’t want to renew their lease. Now you’re back to square one, searching for another renter who will hopefully pay the rent on time, respect the property, and be pleasant to deal with when making maintenance calls. But why do good residents leave in the first place?
Sometimes residents have to leave for reasons beyond your control. Maybe their financial situation has changed, their job relocated them, or the space isn’t big enough for their growing family. Maybe they need a change in scenery, or they want to be closer to home. Personal circumstances change all the time, and there’s no guarantee that the lack of renewal relates to the community. However, there are some factors that could push them to look for a different community in the area:
- Lack of Trust
As your parents always told you growing up, trust is a must. If you can’t trust a resident to keep the unit in good shape or they can’t trust you to have repairs done in a timely manner, there simply cannot be a lasting relationship between the two. It’s important for renters to be able to trust you to take care of their unit, and to feel comfortable dealing with you. Reach out to your current residents, or start off a new renter relationship on the right foot by providing a move-in checklist.
2. Lack of Communication
Communication is key. Residents like to be in the know, and a simple text can keep them up-to-date with the status of repairs or easily answer any questions they may have. If they find it difficult to get in touch with you or feel that you don’t share enough information with them, then they won’t want to continue with your community. Be sure to encourage two-way communication, and your renters will appreciate it.
3. Lack of Up-to-Date Features
While residents might not expect every community to have those ridiculous refrigerators with a television in the door, they do want to live somewhere with modern features. If your property has outdated appliances that never seem to work, don’t expect renters to stick around. As another option that requires minimal time and investment, consider offering convenience features such as online rent payments, which would make your residents life easier come the first of the month – especially for roommate situations where an option to individually pay each portion of the rent is available.
4. Increase in Rent
It’s understandable to have to raise the rent to keep up with market demands, but there is no guarantee that your residents will be happy with it. Big surges in rent price are likely to stop renters from renewing a lease, much more so than a small increase. Consider working with your residents to come to a compromise if they are unable to adjust to the new rental amount. Be sure to reference popular rental sites beforehand in order to view the comps your renter is sure to review after receiving their rental increase in order to better justify your decision in the eyes of your tenants.
Resident turnover can be expensive, and no one wants to lose good renters. Try to check in on your residents, and encourage that they come to you with any concerns that they may have. A good property manager-tenant relationship is the basis for a long-term rental agreement. Working proactively to engage with all your residents could be the thing that pushes them to renew when their lease is up, and stop you from having to spend the time and money looking for other renters.
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