Understanding the Cost of Turnover
Before we explore the benefits of tenant retention, it’s essential to grasp the full cost of
tenant turnover. These costs can include:
Lost Rent: The most immediate impact of turnover is the loss of rental income during
the vacancy period. At Brick & Vine we strive to make sure you have no vacancy periods
and we understand how poor tenant communication can inhibit our ability to maintain
occupancy and can cost you money. We ask tenants for ample termination notice and
work with them on extenuating circumstances rather than holding them responsible for
subleasing. As property managers we would rather be aware and in control of the
situation so that we can find new quality tenants hand vetted by our team.
Marketing Expenses: Listing the property, hosting viewings, and screening potential
tenants require both time and money. As property managers we strive to have a
seamless vetting process so that we do not have to worry about unnecessary showings
and advertisement costs.
Maintenance and Repairs: Preparing a property for a new tenant often necessitates
repairs, upgrades, and cleaning, which can quickly add up. Normal wear and tear of the
property falls on the responsibility of the owners and frequent turnover can mean that
these expenses happen more frequently. We would rather have quality tenants that stay
for multiple lease terms than have high turnover due to rental increases.
The Financial Benefits of Tenant Retention
Stable Revenue Stream: Long-term tenants provide a predictable and stable revenue
stream, enabling property owners to better plan for maintenance and upgrades to the
property.
Lower Maintenance and Renovation Costs: Tenants who stay longer are often more
invested in the property and may take better care of it, potentially reducing the need for
frequent repairs and renovations. As property managers we accomplish tenant
investment with prompt communication and maintenance when requests come through.
Enhanced Property Value: Properties with a history of long-term tenancies and low
turnover rates are more attractive to potential buyers, should you decide to sell, as they
indicate a stable income stream.
Our Strategies for Enhancing Tenant Retention
Offer Incentives: Consider offering incentives for lease renewals, such as minor
upgrades to the living space, controlled rent for signing an extended lease, or even
simple gestures like gift cards to local businesses.
Maintain the Property: Keep the property in top condition with regular maintenance
and timely repairs. A well-maintained property is a critical factor in tenant satisfaction
and retention. As property managers we will always keep you up to date on upcoming
maintenance needed on your property.
Understand Market Rates: As property managers we ensure your rent prices are
competitive yet fair. Significant increases in rent are a common reason tenants choose
to move. We regularly assess the market to ensure your rates are in line with similar
properties in the area. We encourage our owners to consider not raising rent for the first
renewal to avoid turnover costs that might outweigh rent increases.
Build Positive Relationships: Regular communication and a friendly, professional
approach can make tenants feel valued and respected. We respond promptly to
maintenance requests and concerns to show that you care about their comfort and well-
being.
The economics of happiness in property management reveal that tenant retention and
positive relationships are not just ethical choices but sound financial strategies. By
focusing on the well-being of tenants and the quality of the living environment, property
owners can reduce turnover costs, stabilize their income, and ultimately save money. At
Brick & Vine we implement a tenant-first approach, which is not just good for the people
who live in your properties; it’s good for business.
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