5 Ways to Make Your Tenants Happy
How to Turn Renters into Happy, Long-Term Tenants
Owning rental properties continues to be one of the most secure and lucrative investments you can make for your personal portfolio. But to be successful, you need happy, long-term renters. Most landlords haven’t figured out how to consistently produce happy tenants. This article aims to show you how to produce happier tenants who respect your property, pay on time, and create fewer problems.
Why Happy Tenants Matter
If you want to be a successful rental property investor, you need happy tenants. That might sound like an odd goal, but it serves as the foundation of every other financial goal you have. Here’s why happy tenants matter:
- Steady income. Happy tenants are much more likely to pay on time and renew their leases. This provides you with a more predictable and steady stream of income.
- Lower turnover. Frustrated tenants don’t re-up their leases. Happy ones do. This leads to lower turnover, which means fewer expenses over the long haul.
- Better property care. Satisfied tenants often view the property as their home and are more likely to take good care of it. This means less wear and tear, fewer repair issues, and ultimately, preservation of the property’s value.
- Faster tenant acquisition. Happy tenants are your best referral source for other properties. They give you positive word-of-mouth marketing and allow you to secure your next tenants without needing to put up listings or pay expensive marketing and advertising fees.
- Rent growth. At the end of the day, a satisfied tenant is much more likely to accept a rent increase because they understand the value in their living experience. (That being said, you don’t want to go crazy with the increases. A happy tenant who pays on time is already worth more.)
5 Ways to Make Tenants Happier
The more you prioritize happy tenants, the more of these benefits you’ll get to enjoy. The question is, where do you start? Here are a few suggestions:
- Create a Great Living Environment
You can’t view your rental property as a “product.” You need to start seeing it as a home. That’s because a rental property is more than just a space with four walls and a roof. For tenants, it’s their home. You need to foster a sense of belonging and comfort so that renters feel safe, comfortable, and satisfied.
- Respond to Their Needs
Part of creating a great living environment is responding to your tenants’ needs as they arise. The more attentive you are, the more likely they are to feel respected.
For most landlords and real estate investors, it’s difficult to constantly juggle the various needs and requests of tenants at each property they own. This is where it’s extremely valuable to hire a local property manager who can oversee tasks like rent collection, repair coordination, and other important action items.
- Build Trust Through Communication
Clear communication is absolutely paramount to your success as a rental property owner. Provide your tenants with multiple channels for communication and be extremely clear about your expectations so there are no misunderstandings.
If there are changes or inconveniences, let tenants know! Whether it’s planned maintenance, community updates, policy changes, or anything else, advance notice is much appreciated and will make tenants feel respected.
- Offer Fair Lease Terms
Don’t try to squeeze every last penny out of your tenants. Offer them fair lease terms that are competitive with the marketplace. Again, this makes them feel respected and will encourage them to stick around (rather than constantly looking for other properties that are more affordable or in line with their budget).
- Show Your Appreciation
Recognizing important dates such as move-in anniversaries or other personal milestones can go a long way in making tenants feel valued. A simple note or small gesture can create a sense of community and appreciation.
Random acts of kindness or thank-you notes for being a great tenant can also foster goodwill. These don’t have to be expensive; even a thoughtful note can have a significant impact. It’s about making tenants feel recognized and appreciated.
Building Your Real Estate Empire
Everyone can build their own real estate “empire” if they play their cards right. Whether that’s owning five properties or 50 is up to you, but it all starts with having happy tenants who pay on time, take care of your properties, and continue to sign lease agreements year after year.
Use some of the tips from this article to develop a plan for turning your renters into happy, long-term tenants. Good luck!
