As a Detroit property investor, you have a multitude of tasks to keep up with running your business. From maintenance requests to rent collection to dealing with problem tenants, you have your hands full. At the same time, owners must find ways to improve tenant retention and boost ROI. If you're already doing it all, what more can you do?
Improving resident retention is one of the best ways to increase returns, but it's not easy without the right insights. The best property management company Detroit offers talks about ten ways to boost tenant retention and increase ROI.
1. Know Your Market
Understanding the Metro Detroit market helps investors in various ways, including knowing how to deliver rental homes that encourage renters to renew their leases! With local market insights, property owners can set the right rental rates. In addition, owners can be sure they're investing in properties in the best neighborhoods with plenty of nearby amenities to attract quality residents.
2. Screen Prospective Tenants Thoroughly
Do you know what you're getting into when a potential tenant fills out the application? It's challenging to learn what you need to know about an applicant without a meticulous tenant screening process to eliminate potentially bad renters and place quality residents that you want to stay for more than one lease term. Keeping tenants longer requires good renters from the beginning! A property manager will thoroughly screen your prospective tenants to find excellent residents worth a long-term lease.
3. Know Your Tenants
Having tenants living in your properties isn't the same as getting to know them beyond simply being a monthly rent check. Taking time to get to know your residents can pay off when it's time to renew a lease! While property management companies encourage a balance between a professional and personal relationship with residents, being friendly with good tenants can be good for your bottom line. Knowing tenants well can often prevent disputes and help you deliver better service as the rental property owner! However, if getting to know tenants is not how you prefer to operate rental properties, a property manager is an excellent solution to manage residents well.
4. Facilitate Easy Rent Collection
Rent collection is one of the more important tasks you'll need to do every month. Without that rent in your pocket, you can't pay ongoing operational expenses or maintain good ROIs. By providing multiple ways for tenants to submit their payments or simply setting up a secure online portal, renters enjoy monthly convenience to pay rent on time. Then, make sure residents know how to make payments electronically by setting up autopay with their bank or paying each month through the online portal.
5. Put Rent Reminders on "Autosend"
Reminding renters to pay the rent can quickly become a hassle. However, more residents appreciate a gentle reminder when they miss a deadline—instead of escalating the situation to assigning fees or taking legal action first. Work with property managers to put rent reminders on autopilot when a payment is a few days late.
6. Solicit An Early Lease Signing
Singing lease renewals early can be a big win for property owners. Starting the lease renewal process early helps reduce vacancy times and gives your current renters plenty of time to commit to a new lease term. Often, renters want to secure a new lease term and lock in their rental rate for the next year as soon as possible—but waiting too late can force them to find a new rental home without renewing the lease agreement.
7. Keep Up With Rental Property Improvements
Rundown rental properties won't appeal to new renters or your existing residents when it's time to renew. Property owners must keep an eye on any necessary improvements for occupied rental units. When you improve the property, residents understand that you care about the property and deliver a home they can continue to love!
8. Remember Tenant Privacy
Building good landlord-tenant relationships includes observing a tenant's right to privacy. When the property needs a repair, set up an agreed-upon time to do so and deliver plenty of notice to your resident before arriving at the property. Not only is it the law, but it also helps tenants feel more "at home" in the rental.
9. Maintain Good Communication
Ensure that residents always know how to reach you or submit a maintenance request when needed. Maintaining open lines of communication helps residents feel at ease when bringing issues to your attention. Proactive communication is also vital in maintaining a good relationship.
10. Connect With a Property Manager
Using professional property management services can help you tackle the other nine ways on this list to boost tenant retention! With an experienced Detroit property manager, investors experience more lease renewals and better returns!
The Best Property Management Company Detroit Offers Boosts ROI!
Learn more ways to boost returns with our free resource, "10 Things You Should Do To Increase the ROI for Your Investment Property!"