15 Tenant Retention Strategies for the Modern Era

Finding residents, inspecting properties, handling maintenance issues, collecting rent, and preparing for emergencies is a lot of work. Every homeowner or property owner understands that tenant turnover can be an expensive aspect of the rental business. Therefore, having a high tenant retention rate can remove a lot of stress from property management. While finding good residents requires effort, retaining them demands even more. Ensuring resident satisfaction, however, can be challenging. We are here to assist owners with practical tips you can start implementing today! Keep reading for our list of effective methods to boost tenant retention rates.  

What is Tenant Retention?  

Tenant retention means keeping existing residents renewing their leases instead of them moving out and needing to find new renters. In property management, retaining residents rather than constantly searching for new ones is usually more cost-effective and efficient. This approach ensures steady rental income and reduces expenses related to vacancies, marketing, and screening new residents. To boost tenant retention, you need to offer valuable services, proactive management, and foster strong resident relationships.   

Why is Tenant Retention Important?  

Retaining residents is crucial for maintaining a strong and profitable business. Property owners can save significant money by keeping current residents satisfied, boosting their rental cash flow.  

There are several expenses that property owners can avoid by retaining residents. For example, when property owners put up listings for their rental properties, it can cost them anywhere from $50 to several hundred dollars. If they decide to hire a leasing staff or a real estate agent to find residents, they may have to pay several hundred dollars or even the entire first month’s rent as a fee. It usually takes about 30 to 45 days, sometimes longer, for a rental property to be vacant from the time one resident moves out to when a new one moves in, meaning property owners might lose out on one to several months of rent. On average, it costs around $2500 to prepare a rental property for a new resident.  

Depending on different factors, this cost could go up even higher. As a property owner, your time is valuable too. If you can avoid tasks like creating rental listings, showing the property, screening tenants, handling repairs, and doing inspections, you will have more time for other things.  

15 Ways to Increase Tenant Retention  

For property owners, having happy, long-term residents is like winning big. There are many strategies owners can implement to make sure their residents stay satisfied. Here is our list of the top 15 ways to keep residents happy and increase retention rate: 

1. Offer Value-Driven Incentives 

We all enjoy getting something extra now and then!  

Incentives are important for keeping residents happy and staying in their homes. They offer benefits beyond just the place they live. For example, if property managers set up a program where residents can improve their credit score by paying rent on time, it encourages responsible financial behavior and gives residents a real bonus.  

Also, offering rewards like lower rent or free amenities when residents renew their lease encourages them to stay longer. 

2. Strategic Updates and Renovations

In the competitive rental market, properties that stay the same quickly lose their appeal. Property managers can make regular updates and renovations to attract residents and keep up with trends. These changes, such as updating the kitchen or bathroom or giving the place a fresh coat of paint, can make a big difference. Renovations increase the property’s value and show residents that their comfort matters. When residents see efforts to improve their living space, they are more likely to stay longer because they feel they’re getting good value for their money. 

3. Introduce a Resident Benefits Package 

Providing a resident benefits package (RBP) is a smart move to improve how residents feel about living in a property. An RBP usually combines different services and perks that meet the needs and wants of today’s renters. This can include convenient services such as air filter delivery, assistance with heating and cooling, or help with moving in, as well as valuable benefits like programs to build credit or get renters insurance.  

By offering this package, property managers make their property more appealing and show they understand what renters want.  

4. Conduct Thorough Routine Inspections 

Regular property inspections are vital for keeping residents happy and managing properties effectively. By checking the condition of rental units regularly, property managers can identify and fix problems early. This could be anything from a small leak to signs of wear and tear. Fixing these issues early saves money on big repairs later and shows residents that their home is well cared for. Inspections also allow managers to talk with residents, listen to their concerns, and build trust.  

5. Prioritize Safety and Security 

Property managers need to focus on keeping residents safe. When residents feel safe, they are more likely to stay in their homes.  

Property managers can enhance safety by installing and regularly maintaining good security systems, cameras, weather plans, and generators. It is not just about physical safety; identity theft is also a concern.   

A strong commitment to safety builds trust and shows residents their well-being matters, encouraging them to renew their leases. 

6. Respond Promptly to Maintenance Requests 

In the rental world, taking care of property repairs is important but also a big challenge.  

Residents care about how quickly their maintenance problems are addressed. When property managers respond fast and get things done well, it shows their commitment to their residents’ happiness and comfort.  

However, if repairs are delayed or neglected, residents might feel that their needs are overlooked, which might affect the retention rate. Fixing things quickly prevents small problems from becoming big, expensive ones.  

7. Provide On-demand Pest Control 

Whether it’s ants in the summer or mice in the winter, pest problems can worsen quickly if you do not take care of them immediately. Property managers show they are serious about fixing problems and making sure residents feel safe by offering pest control whenever residents need it. This helps stop pests from returning and shows you are committed to keeping the place clean and livable.  

It is also a better deal than just spraying bugs before there is a problem. On-demand service means dealing with issues right when they happen. 

8. Streamline with Digital Solutions 

Residents expect digital convenience. Whether they pay rent online, use a website to ask for repairs, or take virtual tours of properties, using digital tools can make them happier.  

These tools do not just make paperwork easier; they also mean property managers can respond to problems promptly. For younger people, being able to do everything online can be a big reason to pick one rental place over another.  

Property managers who keep up with new technology keep residents longer and show that their properties are up-to-date and modern. 

9. Turn Feedback Into Progress

One of the best ways to keep residents happy is by listening to what they have to say. This could be through surveys, feedback forms, or just having an open-door policy where residents can talk to you. Doing this lets you find out what is going well and what could be better in managing the property. But getting feedback is not enough; doing something about it is what matters. Whether it is fixing something small, making renovations, or communicating better, acting based on resident feedback improves their living situation and makes them feel valued. 

10. Encourage a Renter’s Insurance Program 

Encouraging renters to have insurance is a smart move for both property owners and residents. This insurance helps residents replace their belongings if they are stolen or damaged. For owners, it adds a layer of protection because residents are less likely to ask them to pay for their lost or damaged belongings. It also covers costs for accidents that are not the property owner’s fault. Plus, property owners might get a discount on their own insurance if they show their residents have insurance.  

11. Screen Applicants Thoroughly

Unfortunately, a credit score will not tell you everything you need to know about your applicant. While it may seem excessive, a lot goes into the proper screening of a potential new resident. This strict process is key to improving tenant retention. In addition to credit scores, you should also ask for references and perform background checks. Knowing that a new resident is trustworthy, timely, and organized is the first step toward keeping them in your rental property for years to come. 

12. Retention Through Lease Incentives

Once you have identified residents who pay on time, take care of the property, and follow the lease rules, you should consider implementing a lease renewal and incentive policy for residents you want to stay. After all, finding new residents is expensive and time-consuming, and if you have already identified a dream resident, you do not want them to leave. Incentives that can entice quality residents include offering to reduce some of their expenses. For example, one could go about this by offering to cover parking, utilities, or cable and internet fees. Additionally, another way to entice dream residents to stay is by upgrading their property. According to a Softwareadvice.com survey, 27% of respondents said that unit upgrades would prompt them to sign a new lease. If that percentage is not high enough, consider the expenses required to update the property if the resident leaves anyway. 

13. Build Strong Property Manager-Resident Relationships

Tenant retention depends on a strong relationship between property managers and residents, built on respect, communication, and understanding. 

Being approachable, responsive, and attentive to residents’ needs helps create a positive community. Simple actions like regular check-ins, quick replies, and small gestures of appreciation make residents feel valued. 

A solid relationship reduces turnover and encourages positive referrals, benefiting the property’s reputation and profitability.

14. Provide a Move-In Concierge Service

Moving to a new home can be an exciting but busy time for residents, filled with tasks and decisions. 

Offering a move-in concierge service makes this transition smoother and stress-free. The service helps with tasks like setting up utilities, forwarding mail, providing local recommendations, and even arranging movers or renting equipment. 

This thoughtful gesture shows residents that their comfort is a priority, leaving them with a great first impression and setting the stage for a long and positive stay.

15. Offer Group Rate Internet

Most renters rely on internet access, making it an essential service for many. 

By offering group rate internet, you can include internet service in the lease. This eliminates the hassle of coordinating separate internet contracts and avoids hidden setup, cancellation, and equipment fees. 

With negotiated rates, you can provide high-speed internet at a lower cost than renters could find elsewhere. It is a win-win, adding value for residents and increasing the chances of lease renewals. 

Hire a Professional Property Manager at BFPM  

Getting professional help with managing your properties is a great way to keep your residents happy and make sure they get the best service. At BFPM, our team of property managers and support staff always prioritize the needs of our clients and residents. We know that keeping residents happy starts from the first time we meet them and continues with every interaction between property owners and residents. If you are an owner who wants to make your rental business even better, we can help you maximize your profit potential.   

Contact us at BFPM with any queries about property management or tenant retention. 

To learn more about attracting great tenants check out our articles:

Leveraging Social Media for Tenant Engagement and Retention: 10 Tips

A Complete Guide for Los Angeles Landlords to Finding Great Tenants