While there is no specific number, it is estimated that it costs somewhere between four and ten times more to acquire a new customer than it does to keep an existing one – although some even say that the cost of obtaining new customers is actually closer to 30 times!
Regardless of what the figure may be, though, there is some amount of expense involved when a customer walks out the door – and the same holds true when you lose a tenant. This is especially the case when you lose a good tenant who pays their rent on time each month and keeps your property in good shape.
These kinds of tenants can be hard to find, so when you do have one, you want to be sure and keep them as long as you can. What many landlords don’t realize, though, is that it is due to their own actions that tenants may decide to stay or go.
Here are a few things that you can do to keep your good tenants happy and in turn, keep longer-term residents in your properties:
If or when your tenant contacts you for issues that pertain to property maintenance – and especially in case of a property emergency – be sure that you respond in a timely manner. This is the case even if you are at an event or on vacation. If you are the contact person for your tenant, then you are the person who is responsible for fixing the issue. Without a quick response, your tenant will likely feel at a loss for what to do.
It can help if you have a list of contractors, plumbers, electricians, and handymen already stored in your phone so that if a tenant contact comes in, you can quickly make a call and send someone out to check the problem.
You could also offer incentives to your tenants. For example, you could provide a small “discount” to the tenant if they pay their rent early. In some cases, a tenant may even be able to pay a whole year’s worth of rent up front. Here, you could offer to even give them one month free.
Tenants who feel appreciated will also oftentimes stay in a property for a longer period of time. For example, those who receive cards and / or gifts at holiday time will generally feel like they are more than just another “business transaction.”
Taking Care of Business
Ensuring that you get – and keep – long term tenants can require a lot of work. But, it can also pay off in not having empty properties or units for long periods of time that aren’t generating any incoming cash flow.
In order to help manage the time that it takes to run profitable investment properties, working with a property manager can often be a wise decision. Doing so can allow you to free up more of your time, while still providing you the ability to profit from your investments. For more details, Contact Us.