Multi family investing: Tenant retention

Going back to the basics for multifamily investors and property managers not only can save you money but increase your bottom line.

Owning an apartment complex or managing one can be expensive if your game plan is simply offering concessions and other promotions to attract new tenants.

Obtaining new business is of course great but the cost to attract new tenants is an expense multi family owners would rather not pay. And the additional expenses of cleaning, repairs and marketing all add up to losing money. Exiting tenants can sometimes harm your bottom line as well. Word of mouth can be powerful, good or bad. It can be a small world even in a mid size city like Chattanooga.

What if you could retain all of your current tenants and fill your apartment complex with little cost?

Top Four Multifamily Retention Basics:

1. Planning on the tenant renewal begins on the first day of the lease. Be sure the tenant knows you value their stay throughout the lease period from day one.
2. Make it personal. For the multifamily investor, it’s a business but to the tenant it is a home.
   
3. Respond. Tenants often list the lack of response to complaints as the primary reason for leaving.
4. Communicate. Don’t wait for the tenant to bring up renewing. Make every tenant contact count.

The list seems pretty fundamental but it is surprising to know that prioritizing tenant renewals is often over looked.

Managing or owning multifamily investments is easier when you are working with a team who understands what it takes. Call AAM Capital today for more tips.

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