Owning one or more rental properties can be a lucrative business. However, it doesn’t come without some stress and uncertainty. Every landlord knows how challenging it can be to keep apartments filled and rent coming through on time. If you consistently do the bare minimum (or not even that), you’ll likely experience a high occupant turnover rate. That, in turn, will increase your financial stress and potentially give your rental a bad reputation.
To keep tenants happy, so they’re more likely to stay put, it’s no longer adequate to simply give them a roof over their heads. As the demand for rental units continues to increase, so does the competition. Your renters probably have at least half a dozen other places they could choose to live. To help make your property a more attractive choice, it’s important to go above and beyond by offering extra conveniences. Here are five reasons it’s worth your while to keep tenants happy with standout amenities.
1. Reduce Vacancy Rates
The more vacancies you have in your building, the less rental money you’re bringing in each month. To figure out your vacancy rate, divide the number of vacant units by the total number of units, then multiply by 100 to get a percentage. For example, if you have 20 total units and two of them are vacant, you’d have a 10% vacancy rate. To figure out this number, calculate (2 vacant units / 20 total units) x 100 = 10% vacancy rate.
One way to reduce vacancy rates is by offering standout amenities that encourage tenants to stay. You want renters to see the value of staying put instead of looking for another rental that may offer more. To reduce occupant turnover rates, consider offering eye-catching exterior amenities like a pool or park complete with slides and swing sets. Exterior features like these are visibly obvious. They serve as a constant reminder to tenants of how far you’ll go to keep them happy.
2. Encourage Prompt Payments
Happy tenants are more likely to make their rent payments on time. Disgruntled renters, on the other hand, are more likely to submit payments late just to ruffle your feathers. As a landlord, it’s very important to try to keep the occupants of your building happy. That way, they’ll be more likely to prioritize rent even if they’re strapped for cash.
Making payments easier to submit each month is one way to improve occupant satisfaction and convenience. You can do this by setting up an online portal that allows for rapid payments with just a few clicks. Tenants will appreciate not having to mail out a check each time the rent comes due. By giving them convenient payment options, you boost their satisfaction while increasing your likelihood of being paid on time.
3. Avoid Unnecessary Drama
The last thing you want as a landlord is unnecessary drama between you and your tenants. It’s much easier to start off on the right foot than it is to try to repair a relationship after it’s soured. One way to maintain a good landlord-tenant connection is to go the extra mile to beautify the property. Investing in regular landscaping and maintenance services is one of the best perks you can offer.
Some landlords let their properties go ungroomed for long periods because they don’t want to pay for maintenance. But the way a property looks has a huge impact on those who live there. By providing a beautiful environment, you can build rapport with tenants and avoid unnecessary drama. To save money, compare quotes from various yard service companies. Some offer discounts when you sign up for annual maintenance packages.
4. Boost Property Pride and Ownership
Some of the top rental property problems would subside if occupants felt a greater sense of pride and ownership. Too often, renters don’t care about trashing the place because they don’t own it. As a property manager, it can be hard to combat the tendency to dissociate from responsibility. Offering extra amenities that make renters excited to live there is a great way to boost property pride.
Consider offering common areas where people can go to have fun and entertain guests. These could be game rooms or outdoor barbeque areas where people can mingle and make new friends. A pool is always nice, but you could also add simple things like a little free library or an herb garden. Think of these amenities as an investment. When renters love where they live, they’re more likely to go the extra mile to keep things clean and nice.
5. Keep Repair Costs Low
If you have a habit of cutting corners to save a few bucks, you can expect to deal with unwanted consequences down the road. It’s not a good idea to purchase second-hand appliances or worn-out fixtures that work “well enough” for your renters. Failing to keep basic amenities in good working order sends a clear message that you don’t care about your tenants. Plus, such actions almost always result in increased repair costs down the road.
To keep occupants happy, invest in high-quality amenities like dishwashers, range ovens, and laundry facilities. They’re less likely to break down frequently and will therefore cost you less money in repairs. When something does break down, schedule repair or replacement services right away. In return for your attentiveness, renters will appreciate and respect you more. You’ll also save money by repairing things early on instead of waiting for the problem to become worse and more costly to fix.
One of the most important things you can do as a landlord is to keep your tenants happy. You can do this by offering standout amenities that increase tenant satisfaction. Doing so takes effort, but it will reduce your vacancy rate so more money flows in.