Quite a bit of time, money and due diligence are required in finding a good tenant for a rental property. The advertising, reference calls, time showing the property and background checks are all part of the arduous process. However, if you are experiencing a high rate of tenant turnover you may want to take a closer look at how you are managing your properties and maybe consider changing your approach.
Here are several reasons your tenant may have decided not to renew:
- Life/Personal Events
Let’s face it. Life happens! A young couple decides they want to start a family and need a bigger space or a new job comes into play which requires the tenant to relocate. These events are out of your control and are part of any rental business. It is in your best interest to express your understanding of the situation – in doing so the tenant may leave a positive review online or even refer another potential tenant to you.
- Increase in Rent
With fluctuations in the housing market, it is inevitable you will have to increase the rent periodically. But beware, try to be conservative with increases and implement them over a gradual period of time. Increasing the rent too much at one time will most likely scare your tenant away. Make sure you are keeping with rates that are fair and reasonable for the area and not just raising the rent without just cause.
- Lack of Landlord Attentiveness
Make it a priority to fix any issues that arise in or on the rental property within a reasonable timeframe. This should be spelled out in the lease. If a problem can’t be fixed immediately, it is pertinent to keep the tenant apprised of what action you are taking and keep the communication going until the issue is resolved.
- Poor Communication
Keeping an open-line of communication with your tenant is vital to the landlord-tenant relationship. Here are a few helpful tips on how to avoid communication pitfalls:
- It all starts with the lease! Make sure the tenant fully understands the terms and conditions of the lease and answer any questions they might have.
- Always try to keep in touch with the tenant on a regular basis – once a month or so – to make sure all is going well. Sometimes tenants do not speak up until a small problem has turned into a larger issue.
- It is also best practice to communicate via email in order to avoid misunderstandings.
- Always respect the rights of your tenant. It should spell out in the lease when you, the landlord, are permitted to enter the property. Usually, 24 hours-notice is the standard amount of time to give. In case of an emergency like a fire, no notice is required.
- Bad Neighbors
This is a major reason why a tenant would consider leaving a property – maybe even try to get out of the lease early. Noise is one of the most common complaint among neighbors and should be addressed promptly. There should be a clause in the lease regarding noise violations. The offending tenant should be notified of the noise violation, reminded of the terms regarding noise in the lease and any fines or penalties that will occur if they are not resolved.
Need more assistance? Call the experts today to learn more about the steps you can take to retain your good tenants!