When you own rental properties, one thing you might want to track is your tenant turnover rate. Your tenant turnover rate refers to how often you lose tenants and must rent their apartments again. If you have a high rate, you might be losing a ton of money. How can you fix it, though? Here are three things to know about tenant turnover rates if you own rentals.
1. Why It Matters
One of the best ways to increase your revenue with your apartment rentals is by finding ways to keep your tenants. When you keep your tenants longer, you decrease your tenant turnover rate. Decreasing your tenant turnover rate is vital for your bottom line. Each time a tenant moves out, you lose rental income. This is the first thing to know. Secondly, each time a tenant moves out, you might have to invest money in the unit. Investing in the unit costs money, plus it takes time and effort. You have to advertise again for the unit and screen those that apply. The better option is to aim to keep your tenants to avoid all these things, which is one of the goals that property managers have.
2. Ways to Reduce Tenant Turnover
Property managers aim to reduce tenant turnover rates by doing several things. First, they try to learn why tenants keep moving out. For example, is it because of a lack of maintenance? Is the rent too high? Are the neighbors loud? If you can fix those problems, your tenants might stay longer. Secondly, you can reduce the rate by keeping up with the repairs and maintenance the units need. When you focus on these things, your tenants might not have any complaints. Finally, you should aim to choose better tenants, as they might stay longer.
3. The Added Benefits of Hiring a Property Manager
If you hire a property manager, they will work on decreasing your tenant turnover rate, but that is not all. A property management firm is great at handling every task your rentals need. They will maintain the units, fix things when needed, and perform thorough tenant screenings.
If you want to increase the income from your rental property business, you might want to focus on decreasing your tenant turnover rate. A property management firm can help you with this and more. Contact one today to learn more about their rates and services.