Tips to Reduce Tenant Turnover
According to a 2012 survey from Appfolio, the average landlord has a vacancy rate of 4.5%. However, much higher vacancy rates are common in some areas, which is primarily due to high tenant turnover rates. Tenant turnover can be very costly, so you will want to do everything possible to keep it down.
How Do I Lower Tenant Turnover?
There are a number of costs associated with tenant turnover. You lose money, because you are not collecting rent. You also have to pay for marketing, background checks and other services needed to fill the room. The average landlord needs to pay $2,000 to find a new tenant. Here are some ways that you can avoid these costs by limiting tenant turnover.
Work With a Good Property Management Company
A property management company in Tuscon can significantly reduce tenant turnover. They have considerable experience in dealing with tenants and will do everything possible to keep them content.
Look for People Working in Jobs that Require Relocation
Some people work in careers that require them to relocate frequently. You will want to identify these people, because they may need to give their notice in six months.
Choose Tenants With a History in the Community
Some people are trying to find a community that they want to settle down in. They may have just moved to the area to â€śtest it outâ€ť and see if it is where they want to spend the rest of their life. They may leave if they donâ€™t like the social scene or job opportunities, so it is a good idea to try to look for people that have been around for a while.
Stable Rental History
Something may be wrong if an applicant has moved three times in the last year. You can ask for their explanation, but it is a good idea to find out what has happened. Most landlords prefer renting to people that stayed at their prior residence for at least a couple years, because they are more likely to be long-term tenants.
Address Issues in a Timely Manner
You need to make all reasonable efforts to address tenant concerns. Even if it seems that they are being picky, you need to at least demonstrate an effort to help them out. They will be more likely to stay if they feel that their concerns are being adequately addressed.
Do Not Be Afraid to Evict Problem Tenants
Evicting problem tenants may seem like an odd way to lower tenant turnover, but it is one of the most effective solutions in the long-term. Noisy and disrespectful neighbors are one of the two most common reasons that people choose to leave their apartments, even if it means breaking a lease. You will need to be willing to evict someone that creates problems so other tenants donâ€™t leave.