Tenants sometimes break their condo leasing contract and leave early because of the landlords’ neglect or attitude. You can have the best rental property but fail to keep good tenants because of bad management and lack of experience. Learn about the common reasons tenants quit their lease and the ways you can avoid them. This will help you succeed in your rental business.
It is common practice to increase rent by at least 10% every time a contract is renewed. This may result to tenants backing out of a contract renewal after many years of renting a place. The condo unit may have become too expensive for them. In some instances, they may also have personal expenses that make the additional rental expense impossible to keep up with. They may have a new family member (a newborn baby, perhaps?), a job transfer or a medical condition that increase their monthly expenses.
In cases like this, you can offer to transfer your tenant to a cheaper place. This will work if you are managing a string of rental properties. You may also offer to reduce the monthly rental fees. Good tenants are hard to come by. Taking the effort to keep an existing tenant with a good track record will be worth it.
Good tenants are also good neighbors. They follow the rules set out by the property management, such as avoiding unruly behavior that disturb the neighbors. Good tenants expect the same good behavior from their neighbors. If they aren’t able to sleep well because their neighbors like to party late into the night, then they may feel compelled to move out of the apartment. This is more likely if their complaints fall on deaf ears. As the landlord, it is your obligation to ensure that your tenants are able to enjoy peace and quiet, especially if there are strict rules being enforced in the building. Be proactive and talk to the unruly neighbors. Remind them of the rules and the repercussions for breaking them.
Trust is an important ingredient for running a successful business. The same holds true for rental property. You need to win over the trust of your tenants if you wish to keep them. To achieve this, you must always keep your word. If, say, you promise to install a washer and a dryer and failed to deliver, do not be surprised if they think of moving to a new place. Also, do not just offer empty promises of addressing their concerns every time they lodge a reasonable complaint. Make sure you actually work on fixing the problem.
Many people choose to rent a home not because they can’t afford to buy one but because they’d rather not deal with the repairs that go with owning a house. Called “renters by choice,” these people often have many other things to deal with and would rather just spend as little time as possible maintaining their home. They choose to rent upper-end properties expecting to get good service from their landlords or property management. So if they contact you complaining about a broken faucet or wiring, make sure you immediately send someone over to fix it.
Some tenants do not respond well to changes, especially if they are unexpected. Avoid unwanted surprises by keeping your tenants in the loop. Will a new construction project block their preferred path to the parking area? Do you plan to renovate the property? Will a new family be moving in next door? Let your tenants know what to expect. This way, you can spare them any irritating surprises. It all boils down to effective communication.
Landlords should be able to guarantee safety to their tenants. Do not be surprised to find your tenants leaving if you fail to provide a safe environment. One of the advantages of condo rental properties is that security is covered by property management. Nevertheless, do not get complacent. Be ready to respond to your tenants’ security concerns. Sometimes, people seek reassurance so they could feel safe. Always lend an ear.
Are you renting out your condo unit to several people? Note that it is your responsibility to keep things in order. There are rental house rules for tenants, and good tenants should willingly follow these rules to a T. When other tenants do not stick to the same strict guidelines, resentment can brew. Make sure you effectively enforce your own rules, so you do not end up losing your good tenants.
Good tenants understand that things will not always go their way. They will not like everyone in the neighborhood, things will break, and not everyone will strictly follow rules. But good tenants expect their landlord to be as reasonable. They expect you to be professional and to respond to complaints consistently and promptly. You should be able to live up to this expectation if you wish to keep good tenants. Always remember that you are running a business. A good businessman ensures smooth operations.
Sometimes the source of tenants’ woes is the landlord himself. One of the top reasons tenants leave is because they find their landlord unpleasant. Tenants will take their business elsewhere if their landlord is not treating them right.
Be professional when dealing with your tenants. Whether you are having a good day or not, be ready to talk to your “customers” politely. Customer retention, after all, is much more cost-effective than customer acquisition.
Landlords work hard to find a good tenant. If you’ve locked down on one, take the extra effort to keep him/her. Good tenants sometimes quit a lease because they feel unappreciated. They may have strictly followed rules for many years, but for some reason failed to do so once. If you pounce on them this one time, you will unnecessarily breed resentment. Nurture a good working relationship with your tenants. Keep an open communication, so you know what is going on in their lives. Be willing to offer leeway to good tenants, and always provide excellent “customer service.”
Now that you know the top reasons tenants move out of their apartment, you can take the necessary steps to avoid it. These landlord hacks will help you run a successful leasing business.