Importance of Retention

Retaining existing tenants and residents 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/apartment remains vacant
• Renewal reduces marketing and leasing expenses
• Preparing a vacated space/apartment for a new tenant typically costs more than improving a space/apartment 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