Would you like to increase your annual net operating income? Would you like to simplify your management? Would you like to stabilize your income stream?
If you answered “Yes” to any or all of those questions, then I have one simple answer:
Reduce Your Vacancy Rate!
Regular tenant turnover is an expensive habit to get into. For every tenant that you need to replace, you will encounter an average of 30 days of missed rent, additional repairs that would have been unnecessary had the tenant stayed and additional advertising and processing costs.
If you want to dramatically increase your income stream, then you need to reduce tenant turnover. Here are 5 ways to reduce vacancy rates using effective ninja techniques.
Ninja Technique #1
Reduce Tenant Turnover by Screening Your Tenants
Keeping your tenant starts before they even move-in. Taking the time to complete a thorough credit and background check plus calling previous landlords for references is well worth the effort. If you can get good, reliable and conscientious tenants in your units in the first place, there will be much less vacancy and you will have virtually eliminated the costly eviction process.
Ninja Technique #2
Cut Tenant Move-outs through Rebates
One of the primary reasons for evictions is late rent payments. Encourage your tenants to pay on time, or even early, by offering a rent discount. Say the market rent for your unit is $800 per month. You charge $850 per month but offer a $50 rebate if the rent is paid before the 1st. Not only will your tenants think they are getting a deal, but they will be anxious to pay the rent early.
Ninja Technique #3
Reduce Vacancy Rates through Periodic Maintenance
A tenant wants to feel like the place they rent is their home. If a landlord balks at performing repairs, upgrades and routine maintenance, a good tenant is going to look elsewhere. Periodically ask your tenants if there is anything that needs to be repaired and then promptly take care of it. If they are a really good tenant, consider installing upgraded replacement items. Tell you tenants that it was because you appreciate their care and on time rent payments. Not only are you protecting your investment, but you are encouraging your conscientious tenants to stay put.
Ninja Technique #4
Lower Tenant Turn-over by Offering Amenities
Often the competition for tenants can be tight creating a market inflated vacancy rate. If you offer your tenants the same amenities they would want in their own home, your properties will be in high demand. Review our past article Top 10 Things Tenants Want in a Rental to get some ideas on how to attract, and keep, tenants.
Ninja Technique #5
Cut Your Vacancy Rates with Rewards
If you really want to keep your tenants happy, content and settled in your unit, then make them feel appreciated and valued. When a tenant knows that their landlord appreciates how well they care of the rental and that they always pay the rent on time, they are much more likely to stay. A little gesture goes a long way. A thank you card with a gift card from a local restaurant is a simple and inexpensive way to thank your tenant for renewing. Put them on your holiday greeting card list. Send them a potted plant or install a beautiful blooming bush. It will cost you much less than finding a new tenant.
By applying these few easy ninja techniques, you can reduce vacancy rates, encourage good tenants to stay longer and dramatically increase your annual NOI. What is not to love about that?!