As professional Oakland property managers, we’re often asked about the best ways to earn more and spend less on investment properties. There’s one thing we always recommend: Reduce your turnover. Tenant turnover is extremely expensive. It’s disruptive to your cash flow, it creates vacancy loss, and it comes with a long list of expenses that you need to cover out-of-pocket.
A vacant property is not earning any rent, and that means you’re losing income even while you have to pay for wear and tear, maintenance, cleaning, and landscaping. There are also security risks with a vacant property; with no one living there, your home could become a target for thieves and criminals.
Avoid turnover when you can. Keep your good tenants. Make sure the residents living in your property are happy and enjoying their rental experience. Lease renewals are better for business and it’s better for your investment property. You need consistent cash flow and a growing ROI.
If you’re looking for ways to improve your own tenant retention numbers, we have a few ideas for you.
Moving In: Share Expectations with Oakland Tenants
You should start working on tenant retention before your tenants even move in.
Here’s how: Be responsive and communicative during the leasing period. Share your expectations with your residents early. These things will set you up for a positive and professional relationship that’s built on good communication.
When Oakland residents understand their responsibilities and the requirements set forth in the lease agreement because you’ve discussed those with them, they’re more likely to perform as expected and less likely to avoid asking questions or reporting concerns. This is important to retaining those residents.
If tenants understand what you expect from them, there’s less confusion and little conflict. They’ll renew their lease agreement because you’re easy to work with and approach.
Always remain available and accessible, even after hours when a potential emergency could require your swift action and support.
Responsive Maintenance Retains Oakland Tenants
Maintenance is one of the most important parts of renting out a property, and you need to have a plan in place to be responsive when those repair requests come in. It’s more than just tenant retention; it’s also about protecting the condition and value of your investment.
You cannot effectively retain your best residents without responding right away to even minor maintenance requests. They need to feel supported and cared about. If you ignore a reported leaking toilet for weeks, they’re not likely to stay once the lease period ends.
Proactive, immediate maintenance responses help keep tenants in place. This type of action inspires lease renewals.
Respond to minor and major problems with a sense of urgency. When you are quick to respond to the needs and concerns of your tenants, the trust they put in you will grow. Just about every tenant has had at least one experience with a bad landlord. They know the importance of responsive property owners, and they’ll appreciate the speed with which you take care of repair issues.
Pet-Friendly Rental Homes Lead to Higher Retention Rates
You aren’t required to allow pets into your Oakland rental home. But, if you’re thinking about creative ways to retain tenants…pets can help.
Studies have shown pet-owning tenants are more likely to stay in their rental homes longer. That’s often because not all rental properties allow pets, so it can be difficult to find a home for themselves and their animals. They also know they’ll probably have to pay a pet fee or deposit in a new home, and they don’t want to pay hundreds of dollars in new pet fees every year.
Allowing pets reduces vacancy and it also reduces turnover.
Maybe you haven’t wanted pets because of the risk they carry into your property. That’s understandable, but here are some ways to mitigate that risk:
- Screen pets thoroughly, and ask for vet records and vaccine updates.
- Set restrictions on breeds, size, and age. You can also restrict the number of pets you’ll allow.
- Require renter’s insurance.
- Conduct an extra walk through of the property to inspect for pet damage and maintenance needs
Allowing pets will contribute to better tenant retention and increase what you earn on your Oakland rental home.
Make Rental Increases Reasonable
Most tenants will expect their rent to go up at the end of their lease term. You don’t want to devalue your property by not increasing the rent. However, you have to do it reasonably when you want to keep your tenants.
You also have to raise the rent within the legally allowed limits if your property is subject to rent control laws.
We like to schedule lease renewals months in advance of the lease term ending so we have time to check the market, review the options, and offer a competitive lease renewal rental rate. This is an opportunity to give your tenants a good reason to stay and renew the lease for another year.
Oakland Property Management and Tenant Retention
As you look for ways to increase your tenant retention, consider Oakland property management.
Property managers generally do a better job of retaining tenants than independent landlords because we understand what residents are looking for and what they need. We work with hundreds of them every year. We also have excellent relationships with vendors and contractors, which means we can facilitate repairs faster. We can also negotiate discounted rates, which saves you money.
We also understand the rental market. The expertise of an Oakland property manager when it comes to raising the rent, recommending updates and improvements, and following the laws that are growing more complex each year, is invaluable.
We would love to help you put together a plan for retaining tenants. When you keep your residents in place, you’ll earn more on your investment property. Please contact us at Marquardt Property Management. We provide expert property management in Oakland, the East Bay and in surrounding communities like Hayward, Pittsburg, and Concord.
