Most Common Reason Renters Move Out
You have a brand new tenant, and they’re starting a brand new chapter in their life. But what happens when that relationship breaks?
As a landlord, it’s important to keep tenants happy and ensure they have a positive experience living on your property. That means being present, engaging and taking care of the property’s needs. But things can sometimes go wrong and we don’t always have a clear picture why.
If you’re wondering how to reduce tenant turnover, you need to understand the top reasons why renters may be tempted to leave, and how you can work with our property management team to prevent them from doing so.
Unforeseen Rent Hikes
It’s a tricky business. Raise the rent too little and you end up with less profit, or even a loss. Raise it too much, and your tenants will find their way elsewhere.
As the housing market responds to inflation with volatility, many property owners are turning to software, or even AI, to determine the rent they should be charging. While this sounds efficient and fair in theory, the results aren’t always compassionate or even realistic.
To prevent resentment or a vanishing renter, consider offering a longer-term lease with a fixed rent rate. They’ll have peace of mind that their rent won’t increase during the lease period, and you’ll keep them around longer. That’s passive income you can count on.
Rental Property Maintenance Issues
Maintenance issues, such as a leaky faucet or broken appliance, can be frustrating for tenants. As the saying goes, “Everyone you meet is fighting a battle you know nothing about.” When it comes to a maintenance issue in a rented home, you have no way of knowing what else is going on in your tenant’s life, and sitting on a work order too long might just be the last straw for them.
To prevent your tenants from leaving for these easy-to-fix issues, always make sure to address their maintenance issues promptly and provide regular upkeep of the property. That is your half of the covenant between you and the tenant. Not fulfilling it is letting yourself down, too. Classic Property Management can help you design a rental contract that works for all parties, and has the vendor relationships to take your tenants’ concerns seriously and resolve them quickly.
Poor communication between landlord and tenant can lead to misunderstandings at best, and real trouble at worst.
You don’t have to be best friends, but your renter should feel like more than just your cash machine. Entering into a rental agreement is both a transaction and a promise, and communicating helps us keep our promises.
Especially when you keep it friendly! A brusque landlord makes it far less likely their tenants will come to them with problems or issues, which can boil over. You may find them packing up and leaving if you’re unapproachable enough.
An open line of communication is your buffer against so many negative effects, from missed calls and work orders to the mistakes with paperwork that could have grave consequences. Communicate with your tenants clearly and regularly to ensure they are being heard and their concerns addressed.
Lack of Amenities
If it helps, consider that they may not be leaving your property so much as going toward another, more attractive one. Tenants often seek out properties with amenities like laundry facilities, parking or upgraded outdoor space. If your complex or condo doesn’t have the special perks your tenants want, you may find it harder to fill those units.
Spend some time thinking about ways you can improve your property, whether that’s creating walkways, painting fences, repairing gates or researching trends in what renters are looking for. Sometimes it’s as simple as a new coat of paint or countertop material. Putting in the work is what separates mediocre property owners from the great ones. That’s the difference that keeps renters in your property.
Safety isn’t just a top priority for tenants and landlords alike, it’s an emotional response to our environment. To keep your tenants from leaving due to safety concerns, make sure your property has proper exterior lighting, secure locks, functioning smoke detectors and other safety features. Attend to the space between their parking and their door, for example, or add an electronic lock to the front door or gate.
Inflexible Lease Terms
The prospect of feeling locked into an inflexible or tone-deaf lease agreement is often the last straw for a renter who is on the fence.
To prevent this, consider offering flexible lease terms, such as month-to-month leases or give them the option of renewing the lease for a variable period you can determine together.
Tenants want to feel that their concerns will be addressed promptly and that their landlord is responsive to their needs. Make sure to respond to their inquiries and concerns promptly and give them a way to contact you in case of emergencies.
Remember that as a landlord, you have the power in a lot of ways. Our home is one of the most precious things any of us have. That means most renters are thinking of you as an authority figure in certain ways. Do you want to be a kind authority, a cold one, or one they will be afraid to talk to? The answer seems clear.
Keep Your Property Rented
The relationship between landlord and renter is one that can stand perfectly for years and years, if you’re mindful and understanding of both sides of that relationship. By addressing these common reasons tenants leave before it happens, you can improve tenant satisfaction and retention, which ultimately benefits you as a landlord. Let Classic Property Management show you just how we can keep your tenants happy, your units rented and your bottom line assured.