When renting a property, many tenants consider it a short-term living situation only. “Younger independents” are classified as those between 18 and 24 years old, and a study confirmed that they rent a property for an average of 2.6 years. However, many move annually to coincide with the end of their year-long lease. There were similar findings for the 25 to 44 years old demographic of “flexible professionals,” but people aged 45 and older rent for about six years at a time or opt to purchase a property.
Since the younger tenants are more inclined to leave their rental properties, they must be enticed to stay for a longer term. There are many amenities landlords can offer to keep tenants for longer periods of time. Read below to learn more about keeping long-term tenants!
Encourage Tenants to Sign a Longer Lease
Leases on rental properties are usually for set lengths of time, with common terms being one year. Landlords often use lengthier leases as a tactic to keep tenants in the same rental unit for the long term. Increasing the length of the lease from one year to two years or longer has many benefits for both the landlord and tenant.
Landlords lose a significant amount of money when their units sit vacant. The average turnover cost is about $1,750 per month between advertising costs, cleaning and maintenance, lost rent, and utilities. In addition to the lost source of income, landlords also lose valuable time and effort looking to fill their empty units. When tenants sign longer leases, they also have a consistent source of rental income while avoiding the concerns of a new and potentially problematic tenant.
Tenants also benefit from longer leases. The most obvious benefit is the relief and comfort of knowing you have a place to live for an extended period of time. Moving is a stressful and complicated process, so a long-term lease allows tenants to feel peace of mind as they prolong this anxiety. Additionally, a tenant with a strong credit score can negotiate more favorable terms on a longer lease.
Lease Renewal Bonuses
Offering lease renewal bonuses to entice tenants is another way to ensure they remain in their unit for a longer term. This creates a mutually beneficial relationship between the landlord and tenant. The landlord does not have to deal with finding a new tenant and the aforementioned turnover costs. Conversely, the tenant receives compensation of some sort and does not have to deal with the stress of moving for an extended time period. Landlords have a variety of options for lease renewal bonuses. They can range from covering a month’s rent or utilities to giving a free television or piece of furniture to the tenant.
Stay on Top of Maintenance
Landlords should also remain on top of maintenance requests. Tenants will remain happy and want to stay longer if their maintenance requests are resolved in a timely and professional manner. In fact, many tenants value this so much that it becomes a deciding factor when deciding to re-sign the lease. Not only does this keep tenants happy and more likely to stay longer, it saves landlords time and money! By remaining on top of maintenance, there are fewer repairs to be completed in the future turnover process. It also helps keep smaller issues from becoming larger and costlier repairs.
Upgrade the Unit’s Appliances
Upgrading the unit’s appliances will also encourage your tenant to remain there longer. By replacing outdated appliances with more efficient models, your tenant will notice an immediate increase in convenience. While there will be installation and initial upfront costs, these newer appliances will require fewer repairs. This not only saves you money in the long run, but time as well. Appliances to consider replacing include the washer, dryer, and various kitchen appliances such as the refrigerator, dishwasher, stove, oven, and microwave.
Landlords should also upgrade the unit’s HVAC system. Consider having a ductless mini split installed to replace any outdated central ducted HVAC systems. Ductless mini splits have a variety of benefits over other air conditioners such as window units and space heaters. Their most important quality is their efficiency. Other systems are wasteful and ineffective, but ductless mini splits operate at high levels of efficiency. Therefore, your unit’s energy bill will be significantly lower and your carbon footprint reduced.
The lack of ductwork also makes their installation process and regular maintenance much easier. Mini splits also double as air filters and dehumidifiers, which significantly increases the quality of air in your home or apartment. Ductless mini splits are available in single and multi-zone systems, which make them versatile and appealing for tenants. Single-zone systems consist of one outdoor unit connected to one indoor unit. This allows you to control the temperature in the room or “zone” where the indoor unit is located only.
Multi-zone systems consist of one outdoor unit connected to multiple indoor units, each located in a different room or floor. This allows you to control the temperature in one zone without impacting the others! A multi-zone system is a great way to entice a tenant into staying longer, especially if there are multiple renters with different temperature preferences.
Communicate with the Tenants
Openly communicating with your tenants is another great way to keep them for longer terms. If your tenant ever asks a question or has any comments, make sure to respond in a timely and professional manner. Landlords must be personable and friendly while staying within the boundaries of a professional relationship. By communicating openly with the tenant, you could also ask them what could encourage them to stay longer.
Granting any reasonable requests by the tenants will definitely entice them to stay, especially if they are changes to the unit. For example, allowing a tenant to alter any artwork, plant a garden, switch appliances, or customize the unit in some other way will make them happy and want to stay longer.
Since most renters are inclined to move out of and into new rental homes on a yearly basis, it’s important for landlords to try and keep their tenants beyond this time frame. Fortunately, there are many ways to do this!
