While tenant retention is undeniably crucial for the stability of your rental business, it’s equally important to adopt a holistic approach that encompasses tenant acquisition and retention. At Toller Property Group, we are experts in both tenant acquisition and tenant retention. We offer the knowledge and expertise you need to master these aspects of your rental business.
Here, we explore the symbiotic relationship between tenant acquisition and retention, shedding light on how a comprehensive strategy can fortify the foundation of your property management success.
Strategic tenant selection
It is important to implement strategic tenant selection processes to find trustworthy tenants who will help you maintain a certain standard of living. You want to maintain a stable and profitable rental business and to do this, you will need to find tenants that are suited to your property.
Implement robust screening processes to identify individuals who align with your property’s values and guidelines. A strategic acquisition ensures a higher likelihood of compatibility and satisfaction, setting the stage for long-term tenant relationships.
Reliable tenant screening
A robust screening process will integrate credit assessments, income validations, and past landlord references. This comprehensive approach can help to mitigate the risks associated with property damage, late payments, and, in extreme cases, evictions. Notably, this isn’t an exhaustive checklist; tenant screenings can vary, and may also include background checks.
Combining these checks can offer important insights into a potential tenant’s financial stability and their capacity to meet rental obligations, confirm their identity via official documents such as passports and driving licences and unearth any criminal records. Landlord references can be particularly useful in providing a picture of a potential tenant’s renting history, offering you the confidence you might be looking for that you’re selecting a reliable tenant.
Maintaining confidentiality with obtained tenant information is vital and this can be done by adhering to data protection regulations. Once information serves its purpose, securely dispose of it, by using a shredder, for example.
Effective property marketing
Effectively market your properties via online platforms, social media and local listings. Using these platforms to your advantage by showcasing your property visually and detailing all of the relevant information and advantages will be highly beneficial in attracting the right tenants.
When you market your property, certain elements of your property can be helpful to highlight, such as how near the property is to local amenities or local landmarks. If you are targeting families with young children it is also worth mentioning the locality of any schools and whether or not there are play parks nearby. Additionally, you could mention whether or not your property is pet-friendly and if there are parks nearby for daily dog walks.
Different platforms can be used to market your property in different ways. For example, YouTube can be used for making and uploading house tour videos, Instagram for beautiful lifestyle visuals, and Facebook for advertising your rental on Facebook Marketplace. For a more professional option, you can also use platforms such as Rightmove and Zoopla.
Clear communication
Explicitly state your expectations and requirements in advertisements to attract suitable tenants as this will minimise the time it takes to complete the screening process. Maintaining clear communication is one of the most important aspects of tenant acquisition and retention and setting this in stone from the offset is key.
For instance, you may want to specify whether or not your property is a ‘non-smoking’ property, or how and when you require your rent to be paid. All of these small details will be completely individual to your needs and preferences as a landlord.
Tenancy agreements are also an important part of laying down your expectations as a landlord and are a smart way of making sure that both parties are protected within the agreement. A tenancy agreement can aid in putting a stop to any disputes that may arise and covers the expectations of both the tenants and yourself as a landlord. For more information on how to successfully create a tenancy agreement, take a look at guidance on the Gov.UK site.
Open house events
Hosting open house events enables you to showcase your properties to potential tenants, fostering an immediate connection and the opportunity for you to build trust. Open houses are a chance to view a property in the company of other potential tenants, an agent and the owner of the property, too, creating a better chance to secure the right tenancy.
Open house events give you a chance to spruce up the property and show it off in the best way possible! It also allows potential tenants to visualise how they might style and live within the property themselves if they decide to rent from you.
First impressions matter
A positive and welcoming onboarding process contributes to a lasting impression and ultimately, tenant satisfaction. Provide clear communication, thorough property introductions, and a warm welcome to create an environment where tenants feel valued from the start.
Investing in property appeal
Consider the curb appeal and overall aesthetics of your property. Investing in maintenance and visual appeal not only has the potential to attract quality tenants during the acquisition phase but can also contribute to a sense of pride among existing tenants. In short, a well-maintained property is key to gaining a competitive edge in the market and can help to retain tenants in the long term.
Incentivised lease renewals
Encourage tenant retention from the start through incentivised lease renewal programs. Offer benefits such as reduced rent for renewals, loyalty rewards, or upgraded amenities. This proactive approach not only recognises and rewards tenant loyalty but also creates a positive cycle where satisfied tenants are more likely to extend their leases.
When leasing out a property, you are providing a service to your tenants. Because of this, maintaining a positive tenant-landlord relationship will be one of the most important aspects of being a landlord.
Mastering tenant retention
Incentivised lease renewals are not the only way that you can ensure tenant retention and make your workload simpler as a landlord. Here are a few other ways that you can win the loyalty of your current tenants.
Establish clear guidelines
It’s crucial to set transparent expectations for your tenants to prevent misunderstandings that might escalate into conflicts. These guidelines should be explicitly outlined in the tenancy agreement to ensure the tenant understands the boundaries from the start.
Open lines of communication
Encourage open communication channels, enabling tenants to freely voice their concerns and preferences. Being easily reachable is essential in addressing any arising issues the tenant wishes to resolve.
Perhaps you can set and agree on a realistic goal with your tenants that you will respond to any queries and issues within 24 hours, for example. This will aid your tenants in feeling supported and listened to.
Respect for privacy
While tenants reside on your property, respecting their privacy remains imperative. You need to be able to establish a clear balance between giving tenants space, whilst also ensuring that your property remains in order.
For example, if you are due to carry out a property inspection, giving your tenants at least 24 hours notice is best practice and it is important never to turn up unannounced. Equally, when communicating with your tenants, it is important to ensure that you tread carefully. Landlord harassment is something that is taken seriously within the court system and is classed as anything that you do as a landlord that deliberately disrupts their lives. This includes illegal eviction, removing their personal belongings from the property or, in more serious cases, verbal or physical abuse.
Regular rental term review
Regularly reviewing the rental terms in the leasing agreement is vital to stay updated with any regulatory changes. This also positions you as a responsible and professional landlord, allowing your tenants to trust your judgment and knowledge when it comes to managing your property.
So, if you’re ready to start creating and maintaining what is one of the most important relationships within property ownership, give us a call today on 01327 636 740. Toller Property Group knows what you need as a landlord to successfully implement tenant acquisition and ensure tenant retention.