Property Management Services Improve Tenant Turnover Rates
High tenant turnover is a nightmare for any property owner. A real estate investor buys or builds a rental property hoping that it will generate a constant income stream. This requires a high percentage of occupancy. When a property owner has tenants who only stay for a short period, not only does it affect the value of the unit, but can also lower its creditworthiness. Utilizing property management services is one solution that rental building owners have at their disposal when it comes to boosting the tenant retention rates.
Tenant Screening
Any good residential property management company has a process of selecting tenants. This can ensure that only those who deserve to rent a particular building are allowed. Tenant screening involves a lot of aspects such as background and checks and interviews. With proper screening, the management can avoid trouble tenants such as those who don’t pay on time, don’t adhere to the building regulations, or cause problems with neighbors. The higher the quality of the tenants, the better the retention rates will be.
Property Maintenance
Residential property management services can also maintain a high turnover rate by keeping the building in good condition at all times. Lack of adequate upkeep can cause poor rental building occupancy. If a tenant experiences trouble with an appliance like the HVAC system, and the manager takes too long to fix it, such an occupant may prefer to move out. A management agency should go beyond the cosmetic improvements that are meant to attract tenants. Maintenance has to be scheduled accordingly to ensure that people don’t have complaints while living there. A property management firm has a maintenance crew and licensed contractors who come in when required, and thus keeping the tenants happy.
A rental building with a high tenant turnover deals with a lot of expenses because every time a person leaves, the place has to be repainted and repaired. The management also has to conduct a fresh round of marketing, showing and go through the entire process of accommodating a new tenant. Property management services can minimize these costs by improving retention rates.
