- High tenant turnover refers to frequent vacancies in a rental property, leading to financial loss and a negative reputation.
- Hidden reasons for tenant turnover include poor communication, maintenance issues, noise pollution, neighborhood changes, rent increases, and poor cellular signal.
- To mitigate turnover, landlords must maintain open communication, address maintenance promptly, and be aware of neighborhood changes.
- Regular property assessments and tenant surveys help identify potential issues and gain insight into the tenant experience.
- A strong landlord-tenant relationship, including showing appreciation and understanding, can increase tenant retention.
As a business owner or entrepreneur, it’s important to understand why tenants leave your rental property. Often, tenants will move out and not communicate the real reasons behind their decision. Here’s what you need to know about tenant turnover, why they’re leaving, and how to deal with it. With this knowledge, you’ll be better equipped to change your rental property and retain tenants for longer.
What is a High Tenant Turnover?
High tenant turnover refers to the frequency of tenants moving out of a rental property. It is often measured by the percentage of units that become vacant within a certain period, usually annually.
Tenant turnover can be costly for landlords and property owners. It results in lost income from vacancy periods and requires time and resources to find new tenants and prepare the unit for move-in. In addition, high turnover rates can also lead to a negative reputation for the property, making it harder to attract and retain quality tenants.
Hidden Reasons for Tenant Turnover
There are various reasons why your tenants are leaving. Here are some of them:
1. Poor Communication
One of the most common and misunderstood reasons tenants move out is poor communication between them and their landlord. Without clear communication, tenants feel like their concerns aren’t being heard, leading them to leave. As a landlord, it’s crucial to keep an open line of communication, provide regular updates, and promptly address any of your tenant’s comments or issues.
2. Maintenance Issues
Maintenance issues are a second and more apparent reason tenants move out of rental properties. If your rental property is run-down and not looked after, tenants won’t enjoy living there and can choose to break their lease and leave. Avoid this by responding to maintenance requests promptly, doing regular property checks, and investing in upgrades if needed.
3. Noise Pollution
Tenants highly value peace and often leave due to noise pollution. Sometimes, the noise is beyond your control, like nearby traffic or construction. However, you can try to mitigate noise by soundproofing your rental property, adding carpets, and setting up strict noise guidelines.
4. Changes in the Neighborhood
Renters choose an apartment based on the neighborhood. However, when changes occur, like the neighborhood’s safety deteriorating, new construction happening right next door, or the local store going out of business, this can drive away tenants. Knowing what is happening in your neighborhood and keeping tenants informed of upcoming changes is important.
5. Rent Increases
A clear reason for tenants to move out of rental properties is a rent increase. Rent increases can be hard on tenants and drive them to search for other rental options, especially now that you can’t avoid it. Rent has been increasing, and rather than increasing your rent automatically, have a conversation with your tenants, communicate the reasons behind it, and negotiate any reductions if they are having trouble with the price.
6. Poor Cellular Signal
Lastly, poor cellular signal is a hidden reason for tenant turnover. With the increasing reliance on technology and remote work, tenants expect good cellular coverage in their rental units. If your property has spotty or no signal, it can be a deal-breaker for potential or current tenants. Having a reliable cell phone signal strength test in your properties might be good. This can determine the areas of good and poor coverage, and you can then offer solutions such as Wi-Fi calling or installing a signal booster.
How to Deal with Tenant Turnover
High tenant turnover can be costly and time-consuming, but there are ways to deal with it effectively:
1. Regular Property Assessments
One of the most effective ways to deal with tenant turnover is by conducting regular property assessments. These assessments help you identify and address potential issues before they become significant problems that could drive your tenants away. This could involve checking the status of appliances, reviewing safety features, addressing any maintenance issues, and ensuring the property remains attractive and functional.
2. Tenant Surveys
Implementing tenant surveys can provide valuable insight into the tenant experience. These surveys can cover many topics, including satisfaction with maintenance, communication, neighborhood changes, and rent increases. By understanding your tenants’ concerns, you can make necessary improvements, increase tenant satisfaction, and reduce turnover rates.
3. Foster a Strong Landlord-Tenant Relationship
Building a strong relationship with your tenants can go a long way in reducing tenant turnover. This can involve simple acts like addressing them by their names, responding to their queries promptly, and showing appreciation for their tenancy. When tenants feel valued and understood, they are more likely to stay in your property longer.
Understanding and proactively addressing the factors that lead to high tenant turnover is crucial for landlords and property owners. Property owners can significantly reduce tenant turnover by improving communication and ensuring good cellular signals. Regular property assessments and tenant surveys are powerful tools to identify potential issues and understand tenants’ concerns. Lastly, fostering a strong landlord-tenant relationship can go a long way in retaining tenants. Remember, a satisfied tenant is a long-term tenant.