A tenant turnover occurs when the previous tenants leave the home and it remains vacant until new tenants move in. During this span, landlords get zero rental income and yet still have their monthly expenses. If the situation remains the same for a longer period, this high turnover rate affects ROI and future growth.
However, there are a few significant ways to minimize high tenant turnover.
Faster Tenant Screening Process
Once you have potential tenants applying for the tenancy, make sure you quickly arrange the tenant screening process. It is an effective tool for landlords to get the right renters. You can conduct the process by yourself or hire a Merced property management company to do it for you. Here is a quick step-by-step guide:
- Set your requirements for qualifications of new renters
- Collect applications in order received
- Check their credit score, criminal background, and current employment status.
- Verify the identity, income, and employment from a valid source
- Check the previous address, eviction, and landlord history
- Be sure to process applications in the order received and the 1st qualified based on your qualifications is the one that gets approved.
Avoid taking too long to finalize the renters. A speedy tenant screening process will help you in getting your property occupied as soon as possible. While doing it yourself may be time-consuming, professional property managers can help you get things done faster and effectively.
Draft A Cohesive Lease Agreement
A lease agreement is a blueprint for a hassle-free tenancy. It should state important terms and responsibilities and should be easily understandable.
A coherent lease agreement includes:
- An address, number, name of all tenants
- Description of the property
- Policy and terms of the tenancy
- Rental price and payment methods
- Amount of security deposit and fees
- Pet policy
- Maintenance policies
- Landlord-tenant rights and obligations
- Contact information and landlords’ disclosures
- Addendums as required
Consider hiring a lawyer to make sure your lease agreement does not violate any government rule. Try to have at least a one year lease to minimize high tenant turnover.
Maintain Your Property Well
Irregular maintenance is a common reason for landlord-tenant conflicts. Owners often ignore the maintenance process to maximize the rental profit, but it may result in high tenant turnover. Nobody likes to live in a shabby and deteriorated place. Hence, it is required to conduct a regular maintenance process to attract your potential tenants.
Check the exterior and interior of your property. Consider overall outdoor restoration by fixing the leakage on the roof, holes on the doors. Clean the yard, gutters, sideways, walkways, siding if necessary. Mow the lawn, and trim the shrubs or bushes to boost curb appeal to attract tenants.
Indoor maintenance is equally important to decrease tenant turnover. Look for leaking pipes, significant damages, dripping faucets and fix them quickly. Check the functionality of home appliances and replace faulty items with new ones. Repair the loose cabinets, broken switches, stained and damaged flooring, etc.
Your tenants should realize that you are making an effort to make them comfortable in their house. Hence, do as much as possible to make the unit habitable and pleasant.
Have Fair Rental Charges
Landlords tend to charge high rent to get more rental income. It is okay to expect more from your tenants, but carefully reviewing the rental hikes in your area is required. Overcharging rents without thinking will increase the tenant turnover rate for your property. It is good to analyze the current rental market scenario before determining the price.
Investigate whether the Rent Control Act is applicable in your area. Try to understand the financial condition of your prospective tenants. Know how much they can afford, communicate with them and decide accordingly. Ask other successful owners in your area as to how much they are charging. If your property provides enough amenities and facilities, you can increase the rent. But excessive charging can end up costing you in the long run.
Use Impactful Marketing Strategies to Minimize Tenant Turnover.
Marketing is essential for finding your prospective renters and decreasing tenant turnover. Create an attractive advertisement for your house. Conduct a referral program to inform about the rental property vacancy. You can post about the availability of your property for rent on different social media platforms. List your house on popular rental networking websites to attract renters.
In addition, you can ask the local property manager to find the right tenants for you. Implementing modern marketing techniques can help acquire a large pool of tenants and lower the tenant turnover rate for your rental house. River Drive Properties is a reputed property management company in the Central Valley. Our team of experts provides you with the necessary support and guidance for maximizing the occupancy rate. Contact us at River Drive Properties if you want assistance in minimizing tenant turnover for your rental property.