Tenant turnover is one of the most significant challenges that landlords and property managers face. After all, if your properties aren’t occupied, there’s no money coming in. Not to mention it takes time and money to find a replacement tenant. That said, the key to a successful business is finding and keeping good tenants, which starts by knowing why renters leave in the first place. Read along as we go over some of the most common reasons for turnover and how to stop it.
Key Takeaways:
Rent increases, lack of spaces, ignored maintenance, and neighborhood concerns are some of the most common reasons why renters leave.
Keeping rent competitive, addressing repairs quickly, and building strong relationships can help reduce tenant turnover.
A property management company can help landlords stay on top of essential tasks, such as maintenance and communication, to keep tenants satisfied.
Most Common Reasons Why Renters Leave
If you’re an Austin property manager, you know that tenants come and go. However, if your goal is to run a successful rental business, you’ll want them to stay as long as possible. With that, the key is to find out why they leave in the first place. Some of the most common reasons include the following.
Rent Is Too Expensive
Not Enough Space
Maintenance Goes Ignored
Personal or Life Changes
Concerns About the Neighborhood
Issues With the Neighbors
Poor Relationship With the Landlord
Rent Is Too Expensive
One of the most common reasons renters leave is because of rent increases that make their monthly rent unaffordable. Even small periodic increases can have tenants second-guessing whether or not they can find a similar property for less. After all, when the cost of renting goes beyond what a renter can afford or what they feel is fair, they’re more likely to move out.
Not Enough Space
Lifestyles can change, and some renters may find that their current home doesn’t meet their needs anymore. Whether they’re growing their family, starting to work remotely, or simply need more storage, they may require a larger space. So, if they feel cramped in their space, they’ll look for something else with more space or convenience.
Maintenance Goes Ignored
When maintenance requests pile up or landlords take too long to address them, tenants can become frustrated. For instance, if issues such as leaks, pests, or broken appliances are not addressed, it can make a property feel unlivable (and may even be illegal). That said, renters are far more likely to stay when they feel their home is well-maintained.
Personal or Life Changes
Sometimes, tenants move out for reasons beyond a landlord’s control. Whether they need to relocate for work or have a growing family that requires more space, these situations often arise. However, in these cases, there’s not much you can do as a landlord to make them stay, regardless of how well-maintained and affordable the property is.
Concerns About the Neighborhood
For most people, the neighborhood they live in is just as important as the home itself. So, factors like high crime rates, lots of noise, or a lack of nearby amenities can push tenants to look for safer or more convenient places to live. After all, renters want to feel comfortable in their homes AND their surroundings.
Issues With the Neighbors
Problematic neighbors can make a great rental experience a bad one. Whether they’re dealing with loud parties, constant disputes, or disrespect in general can make tenants unhappy in their own home. If conflicts can’t be resolved, renters may decide to leave and find a more peaceful area to live.
Poor Relationship With the Landlord
A bad landlord-tenant relationship can quickly cause tenant turnover. If renters feel that their concerns are dismissed or there’s a lack of communication coming from the landlord, they’re less likely to renew their lease. Prioritizing strong, respectful relationships with your tenants can lead to them staying longer and possibly renewing their lease.
How to Stop Renters From Leaving
Now that we understand why renters leave, it’s time to apply this knowledge to how we operate rental businesses. After all, if we can make tenants happier and prevent them from leaving, we should. So, here are a few tips on how to get them to stay.
Keep Rent Fair and Competitive
Stay On Top of Maintenance
Build Relationships With Tenants
Encourage Lease Renewals
Choose the Right Tenants
Keep Rent Fair and Competitive
It’s important to do research before setting or raising your rental rate. You’ll want to look at comparable properties, local market rates, and make decisions based on that. With that, if you decide to raise the rent during a lease renewal, give your tenant a heads-up and explain why, whether it’s due to rising taxes or utility costs.
Stay On Top of Maintenance
Landlords or property managers should respond quickly to maintenance requests, especially when they are crucial for the tenant’s safety or habitability. That said, to catch any potential repairs ahead of time, regular inspections are also important.
Build Relationships With Tenants
Respect and communication are key when it comes to a positive landlord-tenant relationship. With that, it should be easy for tenants to reach you, and communication should be prompt and effective. Even things like holiday cards, thank-you notes, or small welcome gifts can go a long way in making your tenants feel happy and respected.
Encourage Lease Renewals
If you want tenants to renew their leases, incentivize them to do so. Consider reaching out 60 to 90 days before the lease ends to discuss renewal options and work with them to come up with a mutual agreement. You may give them a renewal bonus (like one month of discounted rent), or work with them to come up with more flexible lease terms (like a month-to-month agreement).
Choose the Right Tenants
Finally, reducing tenant turnover starts with finding the right tenants. Sometimes, the situation is out of your hands, but having a good tenant screening process can help you and your tenant decide if your property is the best fit. It’s essential to set clear expectations during this time and try to build a good relationship with them from the start.
Avoid Tenant Turnover With Professional Management
When you know why renters leave, you know where to make changes in your rental process to make them stay. Sometimes, it’s hard for landlords to keep up with all the day-to-day tasks of running a rental business. Fortunately, that’s where professional services can step in and provide assistance.
If you find yourself overwhelmed with too much on your plate, contact Stone Oak Management today. Our team of reliable property management professionals can help maintain your properties and keep your tenants satisfied, 24/7. Contact us today to learn more about our comprehensive management services.
