If you’re a landlord, it’s important to know some things about business, and people. If your tenant is satisfied upon move-in, it makes sense that it would help to increase their renewal rate. Are you doing everything you can to make sure this is happening in your business?
According to a recent study done by Kingsley Associates, the experience of moving in a new home determines a tenant’s satisfaction level; if unsatisfied, tenants are not likely to renew their lease, but, if satisfied, rates of renewals are optimized.
As a landlord, the most important tasks start BEFORE move-in day.
Examples include drawing up and completing the lease agreement, obtaining security deposits and rent monies, and putting a property rules contract into place.
While all of these activities help in concluding the sales efforts and the processes associated with leases, true tenant retention initiates on the official move-in day.
Determining if they will renew their lease starts on the experiences that they have starting on move-in day. If you want to have higher lease renewal rates, you must ensure that you place a special emphasis on move-in day.
“Managing Your Own Property Can Be a Full-Time Job…” – Robert Kiyosaki
The study mentioned previously utilized a survey. This was provided to tenants in various areas at varying points in their lease.
This included the move-in day, the mid-point associated with the lease, as well as right before the lease was scheduled to legally expire.
According to the information gathered, those that had a highly satisfying move-in day retained that level of satisfaction and elected to renew their lease. Those that failed to experience satisfaction on their move-in day were often dissatisfied enough when it came time to renew their lease that they elected not to remain on the property.
Those that were satisfied on their move-in day included 59% higher renewal rates than those that experienced some degree of dissatisfaction on their move-in day.
There were some people that were dissatisfied with the way their move-in day went, but still renewed their lease. Unfortunately, this only accounted for a total of 19%.
Make It Great
In order to have the highest lease renewal rates as a property manager, you must place a special emphasis on making a tenant’s move-in day outstanding.
Your professional relationship with your tenant does not stop when you finish all of the legalities. It continues on throughout their entire stay on your property.
You should make your tenants feel valued on move-in day by showing up and ensuring their satisfaction.
Based on the information obtained from the study and survey research, if a tenant has a positive experience on their move-in day, you will have a positive experience when it comes to your bottom line.
Being a property manager is more than simply drawing up contracts, collecting money, and painting a few walls. It is about cultivating relationships and providing people with the single most important material possession in life – a home. If you keep your tenants happy, they will keep you happy.