Tenant Retention

Tenant retentionTenant retention is critical to maximize the profits and value in both commercial and residential real estate. The cost of turnover, whether it be refurbishing a unit or building costly tenant improvements, is substantial. Add this to the down time and lost rents and real estate commissions and these will all have a negative impact on your bottom line. So the question is what is the best way to retain tenants? Like any other business the level of service and communication will help define whether or not a tenant or client is happy. The tenants’ satisfaction leads to tenant retention. The quality of the service will mostly be perceived by the quality of communication. How quickly and how politely a landlord responds to a tenant’s needs makes them feel wanted or unwanted as the case maybe. For example, if a tenant calls for a repair, the speed at which this request is responded to will be directly related to a tenant’s feeling of satisfaction with their tenancy. If the lines of communication are strong and positive, the tenant’s feeling will most likely be that the Landlord is involved and cares which then leads to a feeling of satisfaction. If the communication is open the tenant will also feel as if they are valued. It is this sense of value which then makes the tenant feel comfortable and wanted and more than likely a tenant who will renew their tenancy. Therefore, the quality of service and the level of communication provided by the Landlord are the greatest two factors to providing the tenant a sense of satisfaction and value of their tenancy and will thus result and happy tenant. A happy tenant is a renewing tenant.