How to Attract (and Keep) Good Tenants

How to Attract (and Keep) Good Tenants

Finding and retaining good tenants is one of the most important – and challenging – factors for property managers when it comes to maintaining a successful rental property. But, as a property manager, how do you know what tenants really want in a rental?

Fortunately, for property managers and landlords, Buildium’s inaugural 2016 American Renters Survey went straight to the tenants themselves to figure out what they look for in property rentals and the most important factors for them. The report, which surveyed 900 renters across the United States, got to the root of what tenants care most about in their apartment or home rental and what motivates them to stick around or start looking for another place to live.

Below are some of the key findings from Buildium’s report that property managers and landlords should keep in mind to attract and keep the very best tenants. Renters want (and will pay for) a great neighborhood and an in-unit washer and dryer won’t hurt either.

Location, location, location. There’s a reason why the famous saying is so widely recognized. Of the survey respondents, 72 percent cited location or neighborhood as a factor that weighed heavily on their choice of where to live. When asked what they love most about their rental, a quiet and safe neighborhood was at the top of the list. In fact, the report even showed that a majority of tenants would actively seek out a quiet environment in a new rental.

Beyond location, community features were some of the other elements that impacted tenants’ decisions on where to live. While many tenants reported that they already have a pet-friendly building, a great neighborhood, walking distance to amenities, green space, designated parking and recycling options, there are some additional nice-to-have amenities for which tenants will pay more. This list includes a swimming pool, fitness center, designated pet areas, onsite storage, a doorman or security access, and a garden. In terms of in-unit amenities, the most commonly sought-after feature was a washer/dryer, according to the report, with high-speed Internet and central air-conditioning close behind.

These key findings can be helpful for property managers looking to expand or improve their property portfolio, and can help determine pricing if their unit has a good amount of these amenities. Not only are tenants willing to pay more for these features, they will likely stay there longer, too. If you already have these amenities, be sure to highlight them in your rental listings — especially if they are included in the rent. Digitally savvy tenants seek online convenience features like ePay, tenant portals and text alerts.

Another trend which emerged from the study was tenants’ desire to conduct rental-related business online. In fact, nearly half of those looking to move in the next year said they will be using Craigslist to search, even more so than word of mouth recommendations from family members or friends. Websites and search engines, like Zillow and Google, were high on the list of additional search methods.

With the Internet at their fingertips, all of the tenants indicated that they would like to be using more digital services beyond that to which they currently have access. For example, renters want to pay rent electronically, and while 37 percent of renters already do so, 50 percent reported they aren’t given the option, but would like to have that option. This was particularly true amongst those who live in a multi-tenant home. When asked about online portals, or property management websites where they can manage expenses and property-related communications, only 26 percent of residents say they currently have access to one, while 44 percent enjoy or would like one.

Offering options such as online listings, electronic leases, electronic payments, and online maintenance requests and tracking is a quick and easy way for property managers to increase their number of rental applicants — and keep current tenants happy. In addition, an overwhelming amount of respondents said that they would prefer electronic communications with their property managers and landlords, with email and text messaging topping the list. This is another easy digital fix to help accommodate tenants.

Most tenants love their rental , but relationships with property managers and landlords need work. The good news is that 74 percent of tenants like or love their rental. Not surprisingly, those who loved their rental were the least likely to move. For those who did plan to move, it was usually for reasons other than the rental property itself, such as job relocation or moving in with a significant other. The not-so-good news is that tenants don’t feel the same way about their property managers or landlords.

In fact, those who expressed negative feelings toward the property owners (landlords), were far more likely to move within the next year. Feelings about property managers tended to be significantly more negative overall than feelings about landlords. Of those tenants who don’t like their property manager, a whopping 57 percent say they are extremely or very likely to move in the next year.

With the direct correlation between liking a property manager and plans to move in the next year, making the extra effort to connect with tenants may significantly reduce repeat vacancies and ensure that you are holding onto the tenants you value most.

Desirable location, digital property management capabilities, and a good relationship with property managers and property owners (landlords) are the most important determining factors for tenants when it comes to renting or staying in a property, so they should be equally essential for property managers and landlords, too. Maintaining a property isn’t easy, but with these insights you can start to get a better idea of what to prioritize in order to reduce vacancy rates and turnover and maintain happy and consistent tenants — making it a win-win for everyone.

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Residential Resources: October/November 2016 Issue: Volume 27, Number 10