Here at RentalRiff, we believe in providing a great experience for tenants. To us, rental properties are not a commodity, they are someone’s home. Our focus on the tenant experience and how we’ve structured our service may be our biggest differentiator.
There are many benefits to creating a fantastic tenant experience. Aside from the human elements (and we think these are the most important), there is tremendous value to be captured as a landlord and rental property owner.
As we’ve discussed in other blog posts, there are certain things you can control as a landlord and certain things you can’t. Tenants moving to a new city is out of your control, as is a tenant purchasing a home of their own. Tenants moving to a new rental property because of poor maintenance support or a general lack of communication is definitely in your control. If you can optimize the elements of your rental business that are within your control, you will be better off for it.
Here are some of the main benefits of creating a great customer experience:
Higher tenant retention rates
This one’s a bit of a no-brainer. If your tenants like renting from you and feel supported they are more likely to renew their lease, plain and simple. JTurner did a large study on residents recently and found that 35% of tenants that felt unsupported and under-served moved out. With vacancy rates in the Seattle area currently sitting around 7.5% (or almost 1 month), this can mean thousands of dollars lost.
Better treatment of your property
Not only are unsupported tenants more likely to move out, but they’re also more likely to treat the property poorly. Security deposits exist for a reason but tenants will treat the property better if they don’t feel neglected by their landlord. This means less wear and tear on the property and fewer large, avoidable repairs needed down the road.
Tenants are more accepting of higher rents
Increasing rents at a steady clip is an important part of running a successful rental property business. Another important element is retaining good tenants. When you’ve created a strong support system for your tenants you can both increase rents and retain good tenants. Again, this goes back to controlling what you can control but if the tenants feel taken care of they are more likely to accept the higher rent and stick with your property.
Higher likelihood of collecting rent on time
There are many property management tools out there that automate the rent collection process (we recommend using these tools) but, again, happy tenants are more inclined to make their rent on time. Tenants will want to stay and be more proactive in keeping up their side of the bargain.
Many important components go into running a successful rental property, and maintenance and tenant support are just one of those. It can be a major pain point for landlords and it’s easy for the property-level needs of your tenants to slip through the cracks. If you can optimize your processes and create a positive environment for your tenants, in the long run, you’ll have more success as a rental owner.
Happy landlording!