Implementing Retention Strategies
Retaining existing tenants is important because it helps owners and managers avoid the expense and effort of tenant turnover. Keep in mind that retention is a process, not an event. Renewing an existing lease is more profitable than finding a new tenant for the following reasons:
- Renewal eliminates the loss of rental income while the space remains vacant
- Marketing and leasing expenses are averted
- Preparing a vacated space for a new tenant typically costs more than improving a space for a current tenant
- The relationship with current tenants includes an understanding of their payment history and respect for your property and neighboring tenants, which must be established all over again with a new tenant
- Retention creates loyal customers and promotes positive word-of-mouth advertising and referrals
Comments
This is a very crucial part in the leasing process.
Relationship building is the key to retention, in my opinion.
Tenant retention is a process and even the smallest things help build a lasting relationship. If a resident comes in ranting and raving, I try to have them leave with a smile. Some people are unpleasable, and we can pretty much tell who those are from the begining. If your doing a routine property inspection and run into a resident take a moment to stop, say hello, and ask if they have any concerns.
Tenant retention is a process and begins at lease signing.
- Christopher Mellen | Flag this comment for review