Three Ways To Increase Tenant Retention Without Emptying Your Wallet

As a property manager, increasing tenant retention is one of the best things you can do for your business. When tenants stay for more than one lease term, you end up spending less money finding new tenants -- and you also have fewer vacant months when you're not earning rent on a unit. You don't necessarily have to spend a lot of money to increase tenant retention, either. Here are three ways to do so without breaking the bank.

Start asking tenants about lease renewal well in advance.

Don't wait until the month before your tenants' leases are up to start offering them new leases. This may leave them wondering whether rent will go up the next year or if they'll even be offered a new lease, which may cause them to start considering other living arrangements. Start asking tenants if they'd like to sign a new lease about three months before the current lease is up. This way, they know for a fact that you're happy to have them stay, and they may not search for another apartment.

Grant special privileges to second and third-year tenants.

Depending on your community, this could be anything from a closer parking space to the larger storage unit. Tenants will want to stick around for another year in order to get their perks! Keep in mind that these perks don't need to cost you anything. A few more ideas of perks you could offer second-year tenants include:

• Permission to use the community gym during exclusive hours.
• Access to the indoor parking spaces, first-year tenants can be assigned outdoor ones.
• Use of a community room for parties.

Take care of maintenance issues when they're small and cheaper to fix.

If your tenants have called you to take care of minor repair issues in the apartment, but you've let those issues linger, they're likely to consider not renewing their lease because they fear the apartment will just fall into a greater state of disrepair during that second term. Be proactive about taking care of repair issues. You'll end up spending less by taking care of them when they're small, rather than waiting until they're big. If you cannot address an issue within a few days, let your tenant know exactly why that's the case, and tell them when you do plan on making the repairs. Tenants appreciate property managers who take good care of their units and are more likely to stick around when you take this initiative.

In addition to following the tips above, poll your tenants to see what they would like to see improved in your community, and take action to make those improvements. Tenants appreciate a property manager who works to see their needs satisfied and will respond with greater loyalty. If you need help, contact a property management firm, like CJ Real Estate, Inc, with questions.