Can’t seem to keep your Kansas City tenants long-term?
Hight tenant turnover rates can cost a property owner a lot of time, effort, and money.
To be a successful and profitable landlord, you need to reduce or eliminate your turnover expenses. You can do so by keeping good tenants in your properties longer or incentivizing prospective tenants to choose your property quickly.
A discount can help accelerate the tenant search and lessen the negative financial impact tenant turnover is costing you.
Considering its varying advantages, offering a short-term deal can prove to be beneficial in the long run. The incentives that you offer your tenant will cost significantly less than what it would to maintain an empty property.
To learn more, keep on reading for 6 tips that will help you keep your Kansas City tenants:
1. Offer discounted rates
While tenants may jump at the thought of discounts, this will require planning and accounting on your part.
Start by assessing your costs and the rates of your competitors. Compute for the cost of offering a monthly discount versus the cost of a vacant property.
Evaluate your expenses and the rates offered by your competition. Compare the costs of offering a monthly reduction against those of an extended vacancy, making sure that your property is still profitable with the deal you offer.
Do you have the room to lower your rates if it means signing a tenant more quickly?
Another way that you can offer incentives is to tenants who pay on time or through online payments. This will encourage them to pay on time and to avoid physical payments which can be time consuming and inconvenient.
2. Have more flexible terms
For most tenants, renting is a major commitment and if a lease looks too stringent, they will likely continue with their search for other properties. If you’re more flexible with the terms of the lease, your tenants may feel more inclined to rent your property. There are little, reasonable changes you can make to your agreement to improve its appeal.
Consider accepting pets as many competitors don’t or even allow them to decorate the unit. You can also consider adding an early termination clause in the lease as some tenants find this less restrictive and it may even encourage them to stay longer or renew their lease.
3. Cut out your fees
Tenants don’t like extra fees. They’ll have to look over their budget to factor in the additional costs. You may want to revise your contract to check if you can be flexible with some of your fees. You may want to think about cutting the laundry, parking or application fees, as the long-term cost of waiving them may be smaller than having extended vacant units.
Keep in mind that you’re attempting to find new tenants to rent to. They will have more reason to if they know that they are getting a very good deal.
These fees are minimal when you think about the benefits of renting to reliable tenants. Ensure that you have a proper screening process to select the best tenant for you Kansas City property.
4. Be flexible with the lease
Another reason for tenants to stay is if they know the lease is flexible. This gives them more freedom and puts you at an advantage over other landlords.
You can offer discounted rates if the tenant gets an extended lease. Furthermore, the longer the tenants stay, the lesser your chances of vacancies.
By getting them to accept an extended lease ensures that you have a regular income. It’s important to watch your local market and look at any tax changes to measure your risks. Although you may be getting less income, this is far better and more consistent in the long run.
You also may have prospective tenants who are unsure of the length of their stay. Consider offering a short-term lease to address this market.
5. Offer the first month rent for free
After months of being on the market, a way to attract potential tenants is to offer the first month of rent for free. Though this should be a last resort, it’s always good to know all of your options. This solution can help you short term, but long term you will need to re-evaluate what is preventing applicants from being interested in your property.
Is it the price of rent?
Are you exhausting all your marketing efforts to attract potential tenants?
While you evaluate your situation, this tip could help you find new tenants for your property.
6. Provide upgrades
Think about replacing the furniture and appliances with newer models, putting in a fresh coat of paint or fixing the landscape. These upgrades will ensure that your tenant is happy with a fresher and newer living condition. Don’t think of these upgrades as expenses because they will also increase the value of your property.
Remember to stick to your budget. You will have to factor in the maintenance costs as well. Even something as simple as adding storage or shelving can persuade your applicant to rent your property.
It’s expected for tenants to eventually leave, whether it’s because of their job, they’re starting a family, or construction in a nearby area. It’s important for them to leave with a good impression, as it increases the chances of them referring family and friends who are looking for a rental property in Kansas City.
Offering deals to new tenants can be beneficial, but it takes careful planning and accounting. If you can afford to reduce rates, have more flexible terms, cut fees, and among other things provide upgrades, it can be very profitable to do so.