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One of the worst times for any investor is when great tenants decide to move on. After years of consistent rent payments, pleasant interaction, and delicate care towards your property, it can be hard to watch a tenant walk away. In fact, you may wish to encourage them to stay, but that means you need to understand why they are moving out in the first place.
Great tenants move for a variety of reasons and some of them are going to be out of your control. However, if you do not ask, you will never know if there was something you could have done to keep them. So, if a tenant informs you that they will not be renewing their lease, ask them why. You do not have anything to lose by asking, and everything to potentially gain (or keep).
So, let’s take a look at seven reasons great tenants, may decide to move, and how you may be able to convince them to stay.
But first, since many of the ways you can make great tenants stay can take a bit of money, let us show you how to increase your budget by refinancing your mortgage with a free strategy call at the link below.
As the housing market becomes more expensive, rental rates can be expected to follow. Sometimes the market gets so expensive people have no choice but to move somewhere that is cheaper no matter how they are as great tenants. That way, the tenant is able to get more bang for their buck and enjoy more of their own hard-earned money to have a better quality of life. And in other times, you simply overpriced your own unit and it cost you great tenants.
Pay attention to local market trends, if your property is being leased for noticeably more than neighbouring properties are available at, your renters are likely to pack up. As well, if you impose a sudden rent increase, your renters may leave as well. Even if the increase is not too dramatic, many people would rather pay more to move somewhere new than pay more money for the same place they have been living in for a while.
So, in order to try to keep them, you should give considerable notice before any rent increases and be sure to keep your rent comparable to other local options.
Wanting More Space
Sometimes, a tenant simply needs more space and will go looking for a property that has the space they need. If you want them to stay, try seeing if they would be willing to move into a larger property you own, or a larger unit if they live in a multifamily property. That way, you can keep a stellar tenant and they can get the space they need.
Ignored Repair Needs
One of the biggest downfalls for any property owner is inattentiveness. If a property you own has repair needs that your tenants are telling you need to be dealt with, you need to prioritize them. Otherwise, even your great tenants may decide to move. After all, great tenants want to deal with great landlords.
If your renters are telling you they have concerns about your unit, listen to them, and address them as quickly as possible. Even addressing the small issues may make life better for you and your tenant in the long run. For example, it may not sound worth it to investigate a dripping sink or showerhead that is bothering your tenant, but if left alone, the increased water usage may cost you thousands of dollars in water damage as well as your tenant if it turns out there is a larger underlying issue.
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Your tenants want to be able to trust you and reliably communicate with you. That means keeping your promises and being open to communicate with them when they need you. (Or hiring a property manager who is consistently available for your tenants.)
Say you told a tenant you planned to bring someone in to redo some insulation to help the property stay warm during the winter, but you decide it is not worth the money it would cost. Your tenant is not going to care about the money you saved, but they will care about their cold apartment.
Problems with Neighbours
Bad neighbours can ruin anyone’s opinion of a property. Whether they are loud, messy, rude, or intrusive, your tenants will not want to put up with them for long, and if they bring this concern to you, you have to do something about it. Whether that is helping them file a proper complaint, or bringing their concerns to the neighbours in question, your tenant wants to know that you care about them and their needs.
Unexpected Life Changes
Life happens and sometimes that means even your great tenants may need to move on. Whether it is a job opportunity, death in the family, or a growing family, you cannot control these personal matters and will usually have to let them go.
However, sometimes you may still be able to hold onto your tenant. If your tenant is moving so they can get a place with a significant other or are moving on to get more space for a child or new family member and you have another property available that suits their needs, you can make an offer for them to move into the new property.
Just be sure not to push a renter that does not wish to tell you what type of life circumstance is making them move if they do not want to tell you.
Sometimes Great Tenants Are Ready for Home Ownership
Finally, many great tenants leave because they are not going to be renting from anyone anymore and instead are ready to buy a home of their own. This is always a bittersweet situation because there is usually no way to make them stay, but it is great for the tenant that they are able to buy a property of their own.
In this case, all you can do is offer them a kind exit service and wish them the best. If you are lucky, your former tenant may know someone who may be looking to rent that can take their place.
For more information about investing in residential real estate, call LendCity at 519-960-0370 and ask for Scott Dillingham, or book a consultation online at LendCity.ca Alternatively, click the link below for a free strategy call today. Alternatively, click the link below to book a free strategy call today.