Turnover is expensive for Cleveland rental property owners. Vacant properties are not earning any rent, and the owner has to pay out-of-pocket for maintenance, cleaning, and landscaping. Not only are you losing rental income, you’re also spending money between tenants.
Keeping good tenants in your rental home will ensure a consistent cash flow and increase your long term ROI. When you don’t have vacancy and turnover costs to worry about, you’ll save money and create the peace of mind you need.
We work hard to retain the tenants we place by providing an exceptional rental experience for them. We’re responsive to maintenance needs and willing to hear them when they have concerns or need help. Here’s some additional advice for retaining tenants and avoiding those dreadful turnover costs.
Tenant Retention and Rental Increases
Raising the rent every year when the lease renews is typical, and most Cleveland tenants will expect a higher rent from year to year. But, there’s no need to increase it by a large amount every year, especially if the market doesn’t support it. Make a smart increase that covers your own additional expenses but doesn’t chase away your great tenants.
When you have great tenants in place who pay rent on time every month, keep the property clean and in good shape, and take care of minor issues around the home themselves, you want to retain those tenants. These are the residents you’re hoping to renew year after year, so implement a small increase that matches inflation and the market rental values. You don’t want to be at the high end of what similar properties are renting for. Keeping a good resident in place is more valuable than a couple of extra dollars in rent every month.
Tenant Retention and Maintenance
Responding to maintenance requests is important, and you should treat both emergencies and routine requests with a sense of urgency. Keep tenants informed throughout the process. If it’s taking a bit longer to get a vendor out, let them know.
When you respond quickly to maintenance needs, tenants feel like you’re taking them seriously and that you care about their comfort and happiness. One of the main reasons that tenants leave rental properties is because repairs were not taken care of in a timely manner. Don’t lose tenants this way; make the repairs quickly. Not only does it retain tenants, it also protects the condition of your investment.
Tenants Appreciate Upgrades and Updates
Sometimes, it helps to provide tenants with an incentive to stay. Offer them new carpet or an upgraded hard surface flooring at lease renewal time. You can provide a fresh coat of paint or replace an aging appliance with something new and energy-efficient. If your tenants make a specific request, consider it carefully. Making the rental upgrades will likely cost you less than the turnover and vacancy expenses that come with finding a new tenant and preparing the property for a new cycle of marketing and showings.
Choosing long-term tenants starts during the marketing process. When you list your home on the Cleveland rental market, be sure to state you’re looking for long-term tenants. Consider this when you’re screening applications and look for residents with a reliable, verifiable rental history.
Contact us at Progressive Urban Property Management if you have any questions about tenant retention or if you’d like some help leasing and managing your own rentals. Progressive Urban Property Management in Cleveland serves both single-family and multi-family landlords’ and investors’ needs across all of Cuyahoga County including in Cleveland, Parma, Middleburg Heights, Westlake, among other cities.